The New York-listed operator on Tuesday announced plans to sell 3.5 millionClass A common shares to the public.
“Seaspan intends to use the net proceeds from the offering for generalcorporate purposes, which may include funding vessel acquisitions,” it toldinvestors in a statement.
If the shares are sold at levels seen at the close the company would standto rake in over $82m and another $12m if underwriters exercised a 30-day optionto pick up an additional 525,000 shares.
Seaspan says Citigroup, BofA Merrill Lynch, Credit Suisse, Deutsche Bank, JPMorgan and Jefferies were enlisted as book-running managers and noted ClarksonCapital Markets was hired to serve as a co-manager.
According to a prospectus filed with securities regulators, the HongKong-headquartered owner currently operates a fleet of 71 containerships, whichincludes eight under long-term leases, in addition to 16 newbuildings that aredue for delivery over the next three years.
The company reminded investors that it has already lined up long-term, fixedrate charters for 13 of the vessels that are still under construction andexpects to seal similar contracts for the remaining three at some point “in thenear future”.
Seaspanidentified the counterparties behind fixtures tied to its on-the-water fleet asCOSCON, CSAV, CSCL Asia, HL USA, Hapag-Lloyd, K-Line, MSC, MOL, and Yang Ming. Itreminded investors that charters linked to newbuilds are backed by Hanjin, MOLand Yang Ming Marine.
Goingforward, the owner said it intends to continue to expand its fleet with the additionof newbuildings but acknowledged there may be “select opportunities” to acquiresecond-hand tonnage and resales from shipyards and other third parties.
“Although pricing has recently been increasing, webelieve there exists significant excess capacity in Asian shipyards, and that,as a result of this excess capacity, shipyards are willing to provide pricingand design concessions for large newbuilding construction orders in the nearterm,” it said.
Seaspanmade headlinesin early October when it unveiled plans to offload 5.7 million Class A common shares and $125m worth of convertiblenotes. It pulled the plug on the "Happy Meal" soon after but embarked on the sale of 7.95% Series D redeemable preferred stock a few weeks later.