LONDON, Jan. 5, 2022 /CNW/ - Seaspan Corporation
("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas")
(NYSE: ATCO), today announced that on December 23, 2021, it secured the last of its
financings for its full 70 vessel newbuild program, including three
vessels recently delivered (the "Newbuild Program"). The proceeds
from these financings total approximately $6.9 billion and will be drawn throughout
construction of the Newbuild Program to fund a total investment of
approximately $7.6 billion.
Graham Talbot, CFO of Atlas and
Seaspan, commented, "We have now concluded binding financing
arrangements for our full Newbuild Program, solidifying our
long-term liquidity. We have demonstrated consistent success in
executing on attractive growth opportunities at the right time,
while diligently managing associated risk. We do this by ensuring
we enter into newbuild contracts only once a long-term lease is in
place with one of our high-quality counterparties, and that we have
a clear line of sight to financing the project."
The financing completed on December 23,
2021, (the "Financing") represents the last arrangement
underway to secure financing for the full Newbuild Program.
Proceeds from the Financing total approximately $1.4 billion and will be used to finance ten
15,000 TEU LNG dual-fuel newbuild vessels (the "Vessels").
Graham Talbot added, "This
Financing is our second ECA-JOLCO transaction, and only the second
of its kind, which was developed with our partners at Citi, K-Sure,
and KEXIM in parallel with a sister transaction announced in
December. Creativity and strong global partnerships have allowed us
to bring this structure to fruition, improving our credit quality
and equity returns through long-tenor and remarkably low-cost
funding."
Transaction Highlights
The Financing combines two ship finance structures: (1) export
credit agency ("ECA") backed loans supported by two Korean ECAs,
the Korea Trade Insurance Corporation ("K-Sure"), and the
Export–Import Bank of Korea ("KEXIM"), which is additionally
providing a direct funding tranche, and (2) sale-leaseback
arrangements under special Japanese lease contracts ("JOLCOs"),
providing Seaspan with meaningful benefits, including: i)
long-tenor financing covering construction through to 12-years
post-delivery; ii) meaningful enhancements in cost of secured debt;
and, iii) diversification of funding sources, including Japanese
equity and ECA-backed syndicated bank loans. This represents the
first time Korean ECAs have provided export buyer credit insurance
and a guaranteed tranche for a JOLCO transaction.
Shreyas Chipalkatty, Citi Global
Head of Shipping, Logistics & Offshore, commented, "Over the
years, our partnership with Seaspan has yielded a number of
innovative and value-added structures. With this transaction, we
add yet another successful chapter to Seaspan's story, and also
develop the wider maritime asset financing market. It is a distinct
honor to have been part of this journey with the Seaspan team and
we look forward to continuing our successful collaboration in the
new era that is emerging for the Maritime Logistics space."
Chris Conway, Citi Global Head of
Shipping and Logistics, Export and Agency Finance, added, "After a
lengthy development period this innovative structure has been fully
embraced by the Export Agency community as an important tool to
help foster exports from the leading shipbuilders. We are very
proud to have been able to lead this combination of ECA and JOLCO
for the first time in Korea."
In line with Seaspan's policies, the Financing documentation
incorporates all requirements with respect to the Poseidon
Principles.
Advisors, Financiers, and Export Credit Agencies
Citibank, N.A. (through its branches) acted as Global
Coordinator, ECA Admin Agent, Mandated Lead Arranger and
Bookrunner; Citicorp International Limited acted as Facility Agent
and Security Agent; Bank of America, National Association,
Tokyo Branch, Bank of China
Limited, Tokyo Branch, Deutsche
Bank AG, Tokyo Branch, The
Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch, Société Générale, Tokyo Branch acted as Mandated Lead Arrangers
and as Bookrunners; E.Sun Commercial Bank, Ltd., Tokyo Branch and Standard Chartered Bank,
Tokyo Branch acted as Arrangers;
and The Export-Import Bank of Korea acted as Lender.
KEXIM is providing a buyer credit guarantee as well as direct
funding as a Lender for the ECA-JOLCO transaction. K-Sure has
provided their LOI in strong support of the ECA-JOLCO
transaction.
FPG-AIM acted as JOLCO Arranger, and FPG acted as JOLCO Equity
Underwriter.
Watson Farley & Williams acted as lenders counsel, in
conjunction with Kim & Chang; Shin & Kim acted for KEXIM
and K-Sure; White & Case advised FPG; and Squire Patton Boggs
acted for Seaspan.
About Atlas
Atlas is a leading global asset management company,
differentiated by its position as a best-in-class owner and
operator with a focus on deploying capital to create sustainable
shareholder value. Atlas brings together an experienced asset
management team with deep operational and capital allocation
experience. We target long-term, risk adjusted returns across
high-quality infrastructure assets in the maritime sector, energy
sector and other infrastructure verticals. Our two portfolio
companies, Seaspan Corporation and APR Energy Ltd. are unique,
industry-leading operating platforms in the global maritime and
energy spaces, respectively. For more information
visit atlascorporation.com.
About Seaspan
Seaspan is a leading independent owner and operator of
containerships. We charter our vessels primarily pursuant to
long-term, fixed-rate time charters to the world's
largest container shipping liners. Seaspan's operating fleet
consists of 134 vessels with a total capacity of 1,156,800 TEU. We
also have 67 vessels under construction, increasing total capacity
to 1,959,200 TEU, on a fully delivered basis. For more information
visit seaspancorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements (as
such term is defined in Section 21E of the Securities Exchange Act
of 1934, as amended) concerning future events. Statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "expects", "anticipates",
"intends", "plans", "believes", "estimates", "projects",
"forecasts", "will", "may", "potential", "should", and similar
expressions are forward-looking statements. These forward-looking
statements, reflect management's current expectations only as of
the date of this release. As a result, you are cautioned not to
rely on any forward-looking statements. Although these statements
are based upon assumptions that we believe to be reasonable based
upon available information, they are subject to risks and
uncertainties. These risks and uncertainties include, but are not
limited to, the factors detailed from time to time in our periodic
reports and filings with the SEC, including Atlas's Annual Report
on Form 20-F for the year ended December 31,
2020, filed with the SEC on March 19,
2021. We expressly disclaim any obligation to update or
revise any of these forward-looking statements, whether because of
future events, new information, a change in our views or
expectations, or otherwise. We make no prediction or statement
about the performance of any of our securities.
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SOURCE Atlas Corp.