Benzinga | Jul 6, 2021 07:32AM EDT

Seaspan Announces Order For Ten 7,000 TEU Dual-Fuel LNG Containership Newbuilds; Aggregate Purchase Price ~$1.05B

Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE:ATCO), today announced that it has entered into long-term charters with ZIM Integrated Shipping Services Ltd. ("ZIM") (NYSE:ZIM) relating to ten ultra-modern 7,000 TEU dual-fuel liquefied natural gas (LNG) containership newbuilds (the "LNG Containerships"). Seaspan will enter into agreements with a major shipyard to construct the LNG Containerships, which are anticipated to begin deliveries in the fourth quarter of 2023 and through 2024. The LNG Containerships are anticipated to be financed from existing liquidity, cash flow from operations, and additional borrowings.

Transaction Highlights

* Ten modern 7,000 TEU dual-fuel LNG vessels

* Aggregate purchase price of approximately $1.05 billion

* 12-year charters totalling approximately $1.8 billion of gross contracted cash flow