Seaspan, a unit of Atlas Corp, has raised $750 million in bonds following charter deals for 20 LNG-powered containerships with Israel’s Zim.
The senior unsecured notes, upsized from the original offering size of $500 million, will mature in 2029 and will accrue interest payable semiannually at a rate of 5.50% per year, according to Seaspan.
The Hong Kong-based container vessel owner said it plans to use the funds to acquire, finance or refinance new or existing eligible projects consistent with Seaspan’s “blue transition bond framework.”
This includes LNG-powered containerships.
Moreover, the transaction furthers Seaspan’s sustainability efforts, advances the company’s sustainability-linked capital structure, and adds liquidity to support additional growth opportunities, it said.
Sesapan recently entered into a charter deal with Zim for ten 7,000 TEU LNG-powered container vessels.
The firm said the purchase price would reach about $1.05 billion while the 12-year charters would total $1.8 billion of gross contracted cash flow.
The new deal followed a contract signed by the duo earlier this year for ten 15,000 TEU LNG-powered vessels.
Seaspan said it would place the order for the dual-fuel 7,000 TEU ships at a major shipyard.
It has ordered the previous vessels at South Korea’s Samsung Heavy Industries.