Seaspan Announces Cancellation of Bondholder Meeting

Seaspan Corporation (“Seaspan” or the “Company”) a wholly owned subsidiary of Atlas Corp. (“Atlas”) announced today that it has decided to withdraw its Proposal relating to the Company’s senior unsecured bond issue maturing in April 2026 (ISIN NO 0010981939) (the “Bond Issue”), as set out in the attachment to the press release dated December 1, 2022, as amended by the attachment to the press release dated December 13, 2022. The Proposal included certain amendments to the bond terms related to the announcement by Atlas on November 1, 2022 that Atlas will be acquired by Poseidon Acquisition Corp. (“Poseidon”).

 

As agreement could not be reached with certain bondholders, amounting to more than 1/3 of the outstanding bonds, the Company is providing notice that the bondholder vote scheduled for December 16, 2022, is cancelled. The Company plans to have liquidity available for any bondholder redemptions following conclusion of the transaction with Poseidon.

 

Seaspan continues to believe that its offer included in the Proposal was attractive given the Company’s strong and stable credit profile backed by substantial locked-in contracted cash flows with high quality counterparties (approx. $18.3 billion as at September 30, 2022). As of September 30, 2022, the Company had cash and undrawn revolving credit facilities of approximately $1.1 billion as well as undrawn committed newbuild financing facilities of approximately $6.0 billion to meet its capital requirements.

Graham Talbot, CFO of Atlas, commented, “We would like to thank bondholders for their feedback and partnership throughout this process. We will continue making progress toward our objective of achieving an investment grade credit rating at Seaspan, for which a strong component of unsecured credit within the Company’s capital structure is an important target. To that end, while we remain ready to repay this particular Bond Issue, we will endeavour to continue building long-term relationships with supportive bondholders.”

DNB Markets is acting as financial advisor to Seaspan.

Atlas is a leading global asset management company, differentiated by its position as a best-in class owner and operator with a focus on disciplined capital deployment to create sustainable shareholder value. We target long-term, risk-adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. For more information visit atlascorporation.com.

Seaspan is the largest global containership lessor, primarily focused on long-term, fixed-rate leases with the world’s largest container shipping liners. As at September 30, 2022, Seaspan’s operating fleet consisted of 129 vessels with a total capacity of 1,180,230 TEU, and an additional 61 vessels under construction, increasing total fleet capacity to 1,919,230 TEU, on a fully delivered basis. For more information, visit seaspancorp.com.

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