By Devika Patel
Knoxville, Tenn., May 24 – Seaspan Corp. settled $450 million of a $500 million “oversubscribed” private placement of fixed rate, sustainability-linked senior secured notes on May 21, according to a press release. The issuer plans to issue the remaining $50 million of notes on Aug. 12.
The private placement, which involved over 20 investors within the insurance industry, is the largest reported sustainability-linked U.S. private placement, the company stated in a Monday press release, and received more than $1 billion in demand and was oversubscribed, “resulting in longer terms and tight credit spreads.”
The $200 million 10-year note is being sold in two tranches, with $150 million settled on May 21 and $50 million settling Aug. 12, and accrues interest at 3.91% per year.
The $170 million 12-year notes accrue interest at 4.06% per year. These notes settled May 21.
The $130 million 15-year notes accrue interest at 4.26% per year. These notes settled May 21.
Seaspan is a Hong Kong-based shipping company and a wholly owned subsidiary of Atlas Corp., a Vancouver, B.C.-based global asset manager.
| Issuer: | Seaspan Corp.
|
| Issue: | Senior secured sustainability-linked notes
|
| Amount: | $500 million
|
| Pricing date: | May 24
|
| Distribution: | Private placement
|
|
|
| 10-year notes
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| Amount: | $200 million
|
| Maturity: | 10 years
|
| Coupon: | 3.91%
|
| Settlement dates: | May 21 (for $150 million), Aug. 12 (for $50 million)
|
|
|
| 12-year notes
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| Amount: | $170 million
|
| Maturity: | 12 years
|
| Coupon: | 4.06%
|
| Settlement date: | May 21
|
|
|
| 15-year notes
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| Amount: | $130 million
|
| Maturity: | 15 years
|
| Coupon: | 4.26%
|
| Settlement date: | May 21
|
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