By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – Seaspan Corp. priced $80 million of 7.125% $25-par senior unsecured notes due 2027, according to a press release issued Monday evening.
RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc. are the joint bookrunners. FBR Capital Markets & Co., Janney Montgomery Scott LLC and Incapital LLC are the joint lead managers.
Co-managers are BB&T Capital Markets, Ladenburg Thalmann & Co. Inc., William Blair & Co. LLC, C.L. King & Associates Inc. and Maxim Group LLC.
There is a $12 million over-allotment option.
Interest will be payable on a quarterly basis. The notes become redeemable in October 2020 at par plus accrued interest, according to a regulatory filing with the Securities and Exchange Commission.
The issue can also be called in the event of a change of control. In that instance, the call price is 101% of par plus accrued interest.
The new notes will be listed on the New York Stock Exchange.
Proceeds will be used to repay existing debt and for general corporate purposes.
Seaspan is a Hong Kong-based shipping company.
| Issuer: | Seaspan Corp.
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| Securities: | $25-par senior unsecured notes
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| Amount: | $80 million
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| Greenshoe: | $12 million
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| Maturity: | Oct. 30, 2027
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| Bookrunners: | RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.
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| Lead managers: | FBR Capital Markets & Co., Janney Montgomery Scott LLC and Incapital LLC
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| Co-managers: | BB&T Capital Markets, Ladenburg Thalmann & Co. Inc., William Blair & Co. LLC, C.L. King & Associates Inc. and Maxim Group LLC
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| Coupon: | 7.125%
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| Call options: | Starting in October 2020 at par plus accrued interest; also callable at 101 plus accrued interest in event of change of control
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| Pricing date: | Oct. 2
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| Settlement date: | Oct. 10
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