Seaspan Corporation has entered into purchase orders to build five new 12,200TEU container vessels, backed by 18-year charters.
Once the construction and the delivery of the newbuildings are completed, they will commence long-term charters with a global liner company, according to Seaspan’s announcement.
“Combining our disciplined capital allocation, creative customer partnerships and quality growth strategies, we are excited to announce agreements for five newbuild 12,200TEU vessels backed by long-term charter with a long-standing customer,” stated Bing Chen, the chairman, president and chief executive officer of Seaspan.
The new ships are subject to vessel purchase obligations at the conclusion of the charters, added Seaspan.
The newbuild vessels are to be financed from additional borrowings as well as cash on hand and this transaction is expected to add approximately US$910 million of contracted cash flows over the charter period.
Chen pointed out that “executing a discreet newbuild opportunity to fulfill customer needs and achieve targeted returns is a win-win result,” and went on to comment, “Our execution of this transaction demonstrates the innovative solutions we deliver by leveraging our scale and best-in-class fully integrated service platform.”
