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Seaspan Announces Order Option for Five 7,000 TEU Dual-Fuel LNG Containership Newbuilds; Aggregate Purchase Price Of ~$530M

Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE:ATCO), today announced that ZIM Integrated Shipping Services Ltd. ("ZIM") (NYSE:ZIM) has

Benzinga · 09/01/2021 08:28

Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE:ATCO), today announced that ZIM Integrated Shipping Services Ltd. ("ZIM") (NYSE:ZIM) has exercised its option to enter into long-term charters of five ultra-modern 7,000 TEU dual-fuel liquefied natural gas ("LNG") containership newbuilds (the "LNG Containerships"). ZIM was granted this option in connection with the agreement to charter ten vessels of the same class announced on July 6th, 2021. Seaspan will enter into agreements with a major shipyard to construct the LNG Containerships, which are anticipated to be delivered during the fourth quarter of 2024. The LNG Containerships are anticipated to be financed from existing liquidity, cash flow from operations, and additional borrowings.

Transaction Highlights

  • Five modern 7,000 TEU dual-fuel LNG vessels
  • Aggregate purchase price of approximately $530 million
  • 12-year minimum charters totaling approximately $900 million of gross contracted cash flow