Seaspan intends to sell up to US$1 billion securities

SEASPAN, the Vancouver-based containership owner and charterer, announced that it has filed a universal shelf registration statement with the United States Securities and Exchange Commission (SEC), to provide Seaspan permission to sell up to US$1 billion of common or preferred stock, debt securities, warrants, subscription rights in any combination.

The company noted that although the registration statement relating to these securities has been filed with the SEC, it has not yet become effective. If declared so, "Seaspan will use the net proceeds from the sale of securities offered under the new shelf registration statement for capital expenditures, for repayment of indebtedness, for working capital, to make vessel acquisitions or for general corporate purposes."

Said Seaspan CEO Gerry Wang: "We continue our commitment to capitalising on additional growth opportunities that meet our overall strategic criteria as the long-term outlook for the industry is favourable. Over the past 18 months, we have strengthened our financial flexibility and capital structure and look forward to the delivery of 16 remaining newbuilding vessels that will be on long-term charters to Cosco and "K" Line over the next 21 months."

Mr Wang agreed that there has been a trend for carriers to think of slow steaming as here to stay, but he also said it depended on the fuel price. He also said Seaspan's newer ships are well suited to slow steaming, but other carriers might have to renew their tonnage because of the damage caused to older ships's engines, which were not designed to operate at slow speeds.
(Source:www.schednet.com)