UPDATE: Stifel Upgrades Seaspan as Financial Position Solidifies

In a report published Friday, Stifel analyst Benjamin Nolan upgraded

from Sell to Hold as their financial position solidifies. According to the report, SSW remains one of the preeminent lessor companies in the container industry with a solid management team. However, the analysts believe the container ship industry continues to have many headwinds on the horizon due to irrational vessel ordering and they do not see any material near-term improvements for lessors. “However, the company has taken advantage of the depressed interest rate environment and has entered into several financing agreements to help fund its newbuilding program and solve some of its funding needs,” the report noted. “Recently, Seaspan refinanced a $1 billion credit facility which effectively extended the maturity date from May 2015 to May 2019 and reduced the outstanding amount to approximately $435 million. Seaspan continued to resolve its funding needs by entering into a new five year $125 million loan agreement and planned a 3.5 million common share offering, raising $77 million. We believe the potential refinancing risk that faced the company earlier in the year has now come off the table.” SSW closed Thursday at $23.02.