Seaspan completes significantly upsized $750 Million offering of blue transition bonds

Seaspan Corporation , a wholly-owned subsidiary of Atlas Corp. (“Atlas”) (NYSE: ATCO), today announced that it has successfully closed its previously announced issuance of $750 million in senior unsecured notes (the “Notes”), upsized from the original offering size of $500 million. The Notes will mature in 2029 and will accrue interest payable semiannually at a rate of 5.50% per year. Seaspan intends to allocate the net proceeds of the offering to acquire, finance or refinance, in whole or in part, certain new and/or existing eligible projects consistent with Seaspan’s Blue Transition Bond Framework. The transaction furthers Seaspan’s sustainability efforts, advances Seaspan’s sustainability-linked capital structure, and adds liquidity to support additional growth opportunities.

Bing Chen, Chairman, President and CEO of Seaspan, commented, “This transaction, highlighted by the 50% upsizing of the offering, demonstrates the growing confidence of institutional investors and rating agencies. Our achievements and prospects further accelerate us as the industry leader with solid financial strength, disciplined capital allocation, consistent operational excellence, creative customer partnerships and quality growth. I am proud of our team’s hard work and focus on delivering sustainable value creation for customers and investors.”

Graham Talbot, CFO of Seaspan, commented, “Closing of this offering marks another major milestone in the evolution of Seaspan’s capital structure and reflects Seaspan’s growing access to the global capital markets. In the last twelve months, we have issued inaugural unsecured credit offerings in three different markets, making significant progress on our communicated path to investment grade. Our financial strength has allowed Seaspan to take advantage of significant recent growth opportunities and deliver dependable and consistent returns to our credit and equity investors, while maintaining a prudent balance sheet.”

The Notes are being issued in connection with Seaspan’s Blue Transition Bond Framework, which is designed to align with the guidelines presented by the International Capital Market Association’s Green Bond Principles 2021 (“GBP”) and is informed by Climate Transition Finance Handbook 2020 (“CTFH”). The GBP are voluntary process guidelines for best practices in financial instruments that enable capital-raising and investment for new and existing projects with intended environmental benefits. The CTFH acts as additional guidance for issuers raising funds for transition-related purposes.

Through the issuance of Blue Transition Bonds, Seaspan intends to showcase its efforts to improve the environmental performance of its fleet and contribute to the path towards decarbonization of its industry.

 

Source: https://cyprusshippingnews.com/2021/07/16/seaspan-completes-significantly-upsized-750-million-offering-of-blue-transition-bonds/

0 Comments

Leave a reply

©2021 InterManager - Promoting Excellence In Ship Management

Log in with your credentials

Forgot your details?