By Lisa Kerner
Charlotte, N.C., June 4 - Seaspan Corp. agreed to issue and sell a total of 260,000 shares of series B preferred stock to an investor related to Zhejiang Shipbuilding Co. Ltd. of China for $26 million, according to a form 6-K filed with the Securities and Exchange Commission.
The company used equity raised from the sale of preferred shares and existing credit facilities to purchase one 4250 TEU newbuilding vessel for approximately $43 million constructed by Zhejiang, the filing said.
The preferreds have an initial liquidation price of $100 and carry an annual dividend rate of 5% until June 30, 2012, 8% from July 1, 2012 to June 30, 2013 and 10% from July 1, 2013 onward.
The company can call the preferreds at par at any time.
Seaspan is a Hong Kong company incorporated in the Marshall Islands that owns and charters containerships.
| Issuer: | Seaspan Corp.
|
| Issue: | Series B preferred stock
|
| Amount: | $26 million
|
| Price: | $100
|
| Dividends: | Initially 5%; steps up to 8% on July 1, 2012 and to 10% on July 1, 2013
|
| Call option: | At par at any time
|
| Pricing date: | May 27
|
| Distribution: | Private placement
|
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