Seaspan’s Unencumbered Pool to Count 37 Ships

Hong Kong-based charter owner and operator Seaspan Corporation has partially prepaid two credit facilities, releasing five of its vessels from debt.

Illustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Upon completion of all collateral release documentation, the move will expand Seaspan’s pool of unencumbered vessels to 37, from 32 as reported in mid-January 2019.

“We continue to execute on our near-term capital strategy to strengthen our balance sheet by deleveraging, increasing our unencumbered fleet, and consolidating our secured credit facilities,” Ryan Courson, Chief Financial Officer of Seaspan, said.

The unencumbered asset pool now includes seventeen 4,250 TEU ships, twelve 2,500 TEU units, and two of each 3,500 TEU, 8,500 TEU, 9,600 TEU and 10,000 TEU boxships.

Earlier in 2019, Fairfax Financial Holdings closed the second tranche of its USD 1 billion investment in Seaspan.

With the closing of the second investment, Fairfax’s aggregate shareholdings in Seaspan are 76.9 million Class A common shares or 36% of shares outstanding.