By Rebecca Melvin
Concord, N.H., May 18 – Seaspan Corp., a wholly owned subsidiary of Atlas Corp., has entered into a note purchase agreement to issue $500 million of fixed-rate sustainability-linked senior secured notes in three parts, according to a company release.
The placement, which included a group of 12 institutional investors, was upsized due to strong demand and includes the following:
• $240 million 5.15% notes due Sept. 5, 2032 priced with a spread of 225 basis points over 10-year U.S. Treasuries;
• $160 million 2.4% notes due Sept. 5, 2034 priced at a spread over 10-year Treasuries of 240 bps; and
• $100 million 5.49% of notes due Sept. 5, 2037 priced with a spread over 10-year Treasuries of 260 bps.
“The closing of the notes leverages the strong relationships we have built with institutional investors on the back of our inaugural private placement issuance in 2021. This transaction adds long-dated, fixed-rate, attractively priced debt to our capital stack.” Atlas chief financial officer Graham Talbot said in the release.
Citigroup Global Markets Inc. and BofA Securities, Inc. acted as lead agents and also joint lead placement agents alongside Wells Fargo Securities, LLC.
The agreement is part of the company’s portfolio financing program, and the notes are expected to be issued, and proceeds received, on Aug. 3.
Proceeds are intended to pay down existing debt in the program, fund capital expenditures and fund other general corporate purposes.
Atlas is a Vancouver, B.C.-based global asset manager. Its subsidiary Seaspan is a Hong Kong-based owner and operator of containerships.
| Issuer: | Seaspan Corp.
|
| Issue: | Sustainability-linked senior secured notes
|
| Amount: | $500 million
|
| Placement agents: | Citigroup Global Markets Inc. and BofA Securities, Inc. (lead agents); Wells Fargo Securities, LLC
|
| Co-managers: | SG Americas Securities, LLC, CIBC World Markets, Inc. and TD Securities Inc.
|
| Counsel to issuer: | Gibson, Dunn, Crutcher LLP
|
| Counsel to investors: | Milbank LLP
|
| Announcement date: | May 18
|
| Settlement date: | Aug. 3
|
|
|
| 10-year notes
|
| Amount: | $240 million
|
| Maturity: | Sept. 5, 2032
|
| Coupon: | 5.15%
|
| Spread: | Treasuries plus 225 bps
|
|
|
| 12-year notes
|
| Amount: | $160 million
|
| Maturity: | Sept. 5, 2034
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 240 bps
|
|
|
| 15-year notes
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| Amount: | $100 million
|
| Maturity: | Sept. 5, 2037
|
| Coupon: | 5.49%
|
| Spread: | Treasuries plus 260 bps
|
|
|
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