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Seaspan Orders Four LNG Containerships Backed by Long-Term Charters

Mike Schuler
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May 19, 2022

Containership lessor Seaspan Corporation has once again expanded its newbuild orderbook, announcing it has entered into shipbuilding agreements for the construction of four 7,700 TEU dual-fuel LNG-powered containerships.

The agreement was signed with an undisclosed “major shipyard” with deliveries planned in the third and fourth quarters of 2024.

The newbuilds also come backed by long-term charters with a “leading global liner customer” commencing upon completion. The charters include purchase obligations at the conclusion of the charter terms, and will contribute approximately $950 million in gross contracted cash flow, according to a statement.

The newbuilds are anticipated to be financed through existing liquidity, cash flow from operations, and additional borrowings.

Seaspan, a wholly-owned subsidiary of Atlas Corporation, is the largest global containership lessor, primarily focused on long-term, fixed-rate leases with the world’s largest container shipping liners. As at March 31, 2022, Seaspan’s operating fleet consisted of 132 vessels with a total capacity of 1,147,980 TEU, and an additional 71 vessels under construction, including the latest four newbuildings. The deliveries will increasing Seaspan’s total fleet capacity to 1,959,380 TEU.

Seaspan on Wednesday also announced entering into a note purchase agreement to issue $500 million in fixed-rate, sustainability-linked senior secured notes through private placement. The company said the proceeds from are intended to pay down existing debt, fund capital expenditures and for other general corporate purposes.

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