London, UK - September 30, 2020
Seaspan Corporation ("Seaspan") a wholly owned subsidiary of Atlas Corp. ("Atlas" or the "Company") (NYSE:ATCO), today announced that it has agreed to purchase two high-quality 12,000 TEU containerships (the "Acquired Vessels") for approximately $176 million in cash.
The Acquired Vessels are expected to be financed from additional borrowings as well as cash on hand. Seaspan expects to take delivery of the Acquired Vessels in October, subject to customary closing conditions. The transaction is expected to be immediately accretive to Atlas' funds from operations per diluted share (1), increase long-term contracted revenue by over $165 million, and contribute approximately $20 million of annualized Adjusted EBITDA (2) for the year 2020.
The Acquired Vessels are built in 2018, both of which will operate under long-term charters with leading global liners. Pro forma for this acquisition, Seaspan's global fleet will consist of 127 vessels and approximately 1,073,000 TEU, with total contracted revenue of approximately $4.4 billion and a weighted average remaining lease period of approximately 4 years (3).
Bing Chen, Chairman, President and Chief Executive Officer of Seaspan, commented, "Our team continues to execute on growth through this acquisition bringing the total to 15 high-quality vessels added to our fleet since December of 2019. Atlas' robust liquidity position, disciplined capital allocation and consistent operational excellence has enabled our strategic expansion despite the unprecedented pandemic. We continue to create attractive opportunities to grow our businesses through long-term partnerships with our customers, while providing best-in-class fully integrated services and creative solutions. We remain committed to delivering sustainable value to our stakeholders."
Atlas is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience. We target long-term, risk adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. Our two portfolio companies, Seaspan Corporation and APR Energy are unique, industry-leading operating platforms in the global maritime and energy spaces, respectively. For more information visit atlascorporation.com
Seaspan is a leading independent owner and operator of containerships with industry leading ship management services. We charter our vessels primarily pursuant to long-term, fixed-rate, time charters to the world's largest container shipping liners. Seaspan's fully delivered fleet consists of 127 containerships, representing total capacity of approximately 1,073,000 TEU. Seaspan's operating fleet of vessels has an average age of approximately 7 years and an average remaining lease period of approximately 4 years, on a TEU-weighted basis. For more information visit seaspancorp.com
(1) Funds from operations ("FFO") and FFO per share represent net earnings adjusted for depreciation and amortization, gain/losses on sale, unrealized change in fair value of derivative instruments, loss on foreign currency repatriation, change in contingent consideration asset and certain other items that the Company believes are not representative of its operating performance. FFO and FFO per share are useful performance measures because they exclude those items that the Company believes are not representative of its performance.
(2) Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, impairments, write-down and gain/losses on sale, unrealized change in fair value of derivative instruments, loss on foreign currency repatriation, realized losses on interest rate swaps, realized losses on interest rate swap amendments and terminations, and change in contingent consideration asset. The Company believes that this measure is useful in assessing performance and highlighting trends on an overall basis.
(3) As of June 30, 2020, adjusted for the Acquired Vessels and the acquisition of two 13,000 TEU containerships announced on July 23, 2020.
Seaspan Corporation press release