Seaspan plans $25-par fixed-to-floating rate perpetual preferreds

By James McCandless

San Antonio, Sept. 12 – Seaspan Corp. plans to price an offering of $25-par series I fixed-to-floating rate cumulative redeemable perpetual preferred shares, according to a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC, Stifel, Nicolaus & Co., Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

The preferred will have a fixed dividend for the initial five-year period and will convert to a floating rate beginning Oct. 30, 2023 equal to Libor plus a spread.

The preferreds are redeemable beginning Oct. 30, 2023 at par plus accrued dividends.

Seaspan plans to use the proceeds for general corporate purposes, which may include funding acquisitions, debt repayments and redeeming certain amounts of its existing preferred shares.

The company plans to list the preferreds on the New York Stock Exchange.

Seaspan is a Hong Kong-based shipping company.

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