Seaspan Buys Boxship Newbuilding Duo from GCI

Hong Kong-based container ship owner and operator Seaspan Corporation has bought two newbuilding 11,000 TEU vessels from Greater China Intermodal Investments LLC for a price of USD 195.6 million.

The company said that the ships are scheduled to commence 17-year bareboat charters with Mediterranean Shipping Company S.A. (MSC) upon their deliveries, collectively producing annual cash receipts of USD 17.7 million in the first full year of operation.

“MSC is obligated to purchase the vessels for a pre-determined amount at the end of their respective charters,” Seaspan Corporation said.

The two containerships are sister vessels to the three ships Seaspan will take delivery of in 2017 and charter to MSC.

Seaspan will assume a total of approximately USD 88.1 million in remaining instalments under the shipbuilding contracts for these vessels as partial consideration for the purchase price, while its balance under demand loan with GCI will be reduced by USD 107.5 million to fund the remainder of the purchase price.

Additionally, the company entered into a 17-year lease financing arrangement with an Asian-based leasing company with total commitments of approximately USD 168 million to partially fund the purchase, construction and delivery of the two vessels.

Including this financing, Seaspan has accessed nearly USD 1.2 billion in loan, lease and equity financings from Asian-based sources in the past twelve months.