Seaspan to price cumulative redeemable preferreds; proceeds for general corporate purposes

By Stephanie N. Rotondo

Phoenix, Feb. 6 - Seaspan Corp. will price an offering of series E cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Thursday.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners. Joint lead managers are Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Co-managers include Barclays, Incapital, Ladenburg Thalmann & Co. Inc. and Maxim Group LLC.

Dividends on the $25-par securities will be payable on the 30th day of January, April, July and October, beginning April 30.

On or after February 2019, the company can call the preferreds at par plus accrued dividends.

The shares feature a covenant in which the company cannot pay any cash dividend on any junior security unless it is in compliance with a net worth to preferred stock ratio of at least 1.

The Hong Kong-based containership company has applied to list the new preferreds on the New York Stock Exchange.

Proceeds will be used for general corporate purposes, which may include vessel acquisitions.

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