Photo: Illustration. Image by Navingo

Seaspan orders four LNG-fuelled boxships, closes $500M sustainability-linked private placement

Hong Kong-based operator and owner of containerships Seaspan Corporation, part of Atlas Corp., has entered into agreements with an unnamed shipyard to construct four 7,700 TEU dual-fuel liquefied natural gas (LNG) containership newbuilds.

Seaspan
Illustration. Image by Navingo

As informed, the vessels are anticipated to be delivered in the third and fourth quarters of 2024 and will enter into long-term charters with a global liner company upon completion.

The charters include purchase obligations at the conclusion of the charter terms, and will contribute approximately $0.95 billion of gross contracted cash flow.

The units are expected to be financed through existing liquidity, cash flow from operations, and additional borrowings. The transaction remains subject to certain closing conditions, according to Seaspan.

Over the past few years, Seaspan has been ordering eco-friendly dual-fuel containerships, particularly focusing on LNG. In January this year, the construction started in South Korea on the first of the company’s ten 15,000 TEU LNG-fuelled containerships. Once completed, the boxships will be working for container shipping company ZIM.

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In a separate statement, Seaspan said it entered into a note purchase agreement to issue, in a private placement, a $500 million principal amount of fixed-rate, sustainability-linked senior secured notes as part of Seaspan’s portfolio financing program.

The proceeds from the notes are intended to pay down existing debt in the program, fund capital expenditures, and for other general corporate purposes.

The financing expands the company’s sustainability-linked capital base, aligning sustainability targets with financial performance.

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