Seaspan Corporation (Seaspan) a wholly-owned subsidiary of Atlas Corp. (Atlas) (NYSE:ATCO), Wednesday announced that it has agreed to purchase two high-quality 12,000 TEU containerships for approximately $176 million in cash.

Seaspan Announces Continued Growth Acquiring Two High-Quality 12,000 TEU Containerships on Long-Term Charter
Image for illustrative purposes only - Container ship Seaspan Yangtze - Photo courtesy of Vertpiration

The Acquired Vessels are expected to be financed from additional borrowings as well as cash on hand. Seaspan expects to take delivery of the Acquired Vessels in October, subject to customary closing conditions. The transaction is expected to be immediately accretive to Atlas’ funds from operations per diluted share1, increase long-term contracted revenue by over $165 million, and contribute approximately $20 million of annualized Adjusted EBITDA2 for the year 2020.

The Acquired Vessels are built in 2018, both of which will operate under long-term charters with leading global liners. Pro forma for this acquisition, Seaspan’s global fleet will consist of 127 vessels and approximately 1,073,000 TEU, with total contracted revenue of approximately $4.4 billion and a weighted average remaining lease period of approximately 4 years3.

Bing Chen, Chairman, President and Chief Executive Officer of Seaspan, commented, “Our team continues to execute on growth through this acquisition bringing the total to 15 high-quality vessels added to our fleet since December of 2019. Atlas’ robust liquidity position, disciplined capital allocation and consistent operational excellence has enabled our strategic expansion despite the unprecedented pandemic. We continue to create attractive opportunities to grow our businesses through long-term partnerships with our customers, while providing best-in-class fully integrated services and creative solutions. We remain committed to delivering sustainable value to our stakeholders.”

Source: Seaspan