Seaspan to sell at least $40 million cumulative redeemable preferreds; price talk in 8.25% area

By Stephanie N. Rotondo

Seattle, June 9 – Seaspan Corp. is offering at least $40 million of series G cumulative redeemable perpetual preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Thursday.

Price talk is in the 8.25% area, according to a market source.

RBC Capital Markets LLC, J.P. Morgan Securities LLC, Stifel Nicolaus & Co. Inc. and Incapital LLC are the joint bookrunners for the nonrated deal.

Co-managers include BB&T Capital Markets, Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., Wunderlich Securities Inc., FBR and Maxim Group LLC.

Dividends will be payable on the 30th day of January, April, July and October, beginning July 30. The preferreds become redeemable in June 2021 at par plus accrued dividends.

The new securities will be listed on the New York Stock Exchange.

The preferreds are subject to a net worth covenant that requires the company to maintain a net worth to preferred stock ratio of at least 1.00.

The Hong Kong-based container shipping company plans to use the proceeds for general corporate purposes, which may include funding acquisitions, capital expenditures on existing newbuild vessels and debt repayments.

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