By Devika Patel
Knoxville, Tenn., Jan. 3 – Seaspan Corp. said it has a letter of intent for a $250 million private placement of seven-year 5.5% unsecured debentures with Fairfax Financial Holdings Ltd.
The company will also issue 38,461,539 seven-year warrants. Each warrant will be exercisable at $6.50, an 8.45% discount to the company’s Jan. 2 closing share price (NYSE: SSW) of $7.10.
Proceeds will be used for future growth initiatives, debt repayment and general corporate purposes.
Seaspan is a Hong Kong-based shipping company.
| Issuer: | Seaspan Corp.
|
| Issue: | Debentures
|
| Amount: | $250 million
|
| Maturity: | Seven years
|
| Coupon: | 5.5%
|
| Call: | At par after five years
|
| Warrants: | 38,461,539
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $6.50
|
| Investor: | Fairfax Financial Holdings Ltd.
|
| Pricing date: | Jan. 3
|
| Distribution: | Private placement
|
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