By Angela McDaniels
Tacoma, Wash., May 18 – Seaspan Corp. issued $140 million of 6.95% series F cumulative convertible perpetual preferred shares to a third-party investor based in Asia, according to a company news release.
The conversion price is $18 per share, which is a conversion premium of 10%.
The dividend rate is initially 6.95% but will increase by 100 basis points annually after the fifth anniversary date to a maximum of 10.5% by the ninth anniversary date, or in certain circumstances to 10.5% on Jan. 1, 2018.
Seaspan has the right to call the preferreds at par plus accumulated dividends any time after the dividend increases above 6.95%.
Hong Kong-based Seaspan provides leases on containerships and ship-management services.
| Issuer: | Seaspan Corp.
|
| Issue: | Series F cumulative convertible perpetual preferred shares
|
| Amount: | $140 million
|
| Dividends: | 6.95% but will increase by 100 bps annually after the fifth anniversary date to a maximum of 10.5% by the ninth anniversary date, or in certain circumstances to 10.5% on Jan. 1, 2018
|
| Conversion price: | $18.00
|
| Conversion premium: | 20%
|
| Call option: | At par plus any accumulated dividends any time after the dividend increases above 6.95%
|
| Announcement date: | May 18
|
| Stock symbol: | NYSE: SSW
|
| Stock price: | $16.37 at close May 17
|
| Market capitalization: | $1.58 billion
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