New Issue: Seaspan places $250 million of seven-year 5.5% senior notes, warrants

By Devika Patel

Knoxville, Tenn., Jan. 17 – Seaspan Corp. completed a $250 million private placement of seven-year 5.5% senior notes with Fairfax Financial Holdings Ltd. on Jan. 15, according to an 8-K filed with the Securities and Exchange Commission. The deal priced on Jan. 3, 2018.

The company issued 38,461,539 seven-year warrants. Each warrant will be exercisable at $6.50, an 8.45% discount to the company’s Jan. 2, 2018 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:	Senior notes
Amount:	$250 million
Maturity:	Jan. 15, 2026
Coupon:	5.5%
Call:	At par after Jan. 15, 2024
Warrants:	38,461,539
Warrant expiration:	Seven years
Warrant strike price:	$6.50
Investor:	Fairfax Financial Holdings Ltd.
Pricing date:	Jan. 3, 2018
Settlement date:	Jan. 15
Distribution:	Private placement

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