The containership chartering company Seaspan Corp. announced Monday it 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. We believe we remain well positioned to continue to capitalize on a compelling acquisition environment, while utilizing our growing asset base and cash flows," said Gerry Wang, the company's chief executive officer.
The maturity date will be extended from May 2015 to May 2019, and the outstanding amount of the facility will be reduced to approximately $435 million and bear interest at market terms. Seaspan intends to fund the payment by drawing amounts under an existing refinancing facility, which will be secured by certain ships currently pledged as collateral under the $1 billion facility, and with existing liquidity. In connection with entering into the amended credit facility, the company is amending an existing interest rate-swap arrangement to more closely correspond to the terms of the amended facility.
Seaspan's managed fleet consists of 104 containerships representing a total capacity of over 790,000 TEU, including 31 new containerships on order scheduled for delivery to Seaspan and third parties by the end of 2016.