Seaspan has entered into an agreement to extend and refinance its $1 billion credit facility.
“The refinancing provides multiple benefits for Seaspan and its shareholders, as we extended the maturity of the facility and decreased our total debt position, enabling the company to further strengthen its capital structure,” said Gerry Wang, CEO, co-chairman and co-founder of Seaspan, in a written statement. “We believe we remain well positioned to continue to capitalize on a compelling acquisition environment, while utilizing our growing asset base and cash flows.”
Under the terms of the amended facility, which was primarily arranged by BNP Paribas Securities, the maturity date will be extended from May 2015 to May 2019, effective Jan. 31, 2014, and the outstanding amount of the facility will be reduced to about $435 million. Seaspan said it intends to fund this payment by drawing amounts under an existing refinancing facility, which will be secured by certain ships currently pledged as collateral under the $1.0 billion facility, as well as with its “substantial” existing liquidity.
The Hong Kong-based container ship lessor’s profit soared in the third quarter of 2013, spiking 169.7 percent year-over-year to $48.0 million. Its fleet consists of 104 container ships, representing a total capacity of over 790,000 20-foot-equivalent units, including 31 new vessels on order, scheduled for delivery to Seaspan and third parties by the end of 2016.