Seaspan Corporation
SSW announced today that it has, further to a previously
announced binding letter of intent, signed long-term, fixed-rate time
charter contracts with Yang Ming Marine Transport Corp. ("Yang Ming")
for five 14000 TEU class newbuilding containerships. Concurrent with
the signing of the time charter contracts and further to a previously
announced commitment, Seaspan has entered into shipbuilding contracts
with CSBC Corporation Taiwan ("CSBC") for these five 14000 TEU class
containerships. These vessels have an aggregate purchase price of
approximately $550 million, are scheduled for delivery in 2016, and
have a minimum time charter term of six years. Including this most
recent charter, Seaspan expects to manage a total of 15 vessels on
charter to Yang Ming.
These five 14000 TEU class newbuilding containerships, which will be
constructed using Seaspan's fuel efficient SAVER design, remain
subject to allocation in relation to the right of first refusal
agreement with Greater China Intermodal Investments LLC, an
investment vehicle established by Seaspan, an affiliate of global
alternative asset manager The Carlyle Group, and Blue Water Commerce,
LLC. Seaspan intends to fund construction of its portion of these
newbuilding containerships initially with a portion of the proceeds
of its previous Series D preferred share offering and, subsequently
over the next few quarters, with debt financing. Seaspan is
considering various sources of debt financing to which it has access.
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