Published on 1/17/2019 in the Prospect News Private Placement Daily.
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.
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Issue: | Senior notes
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Amount: | $250 million
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Maturity: | Jan. 15, 2026
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Coupon: | 5.5%
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Call: | At par after Jan. 15, 2024
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Warrants: | 38,461,539
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Warrant expiration: | Seven years
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Warrant strike price: | $6.50
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Investor: | Fairfax Financial Holdings Ltd.
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Pricing date: | Jan. 3, 2018
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Settlement date: | Jan. 15
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Distribution: | Private placement
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