UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report: February 28, 2006
Commission
File Number 1-32591
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SEASPAN
CORPORATION
(Exact
name of Registrant as specified in its Charter)
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|
Unit
2, 7th
Floor, Bupa Centre
141
Connaught Road West
Hong
Kong
China
(Address
of principal executive offices)
|
|
[Indicate
by check mark whether the registrant files or will file annual reports
under
cover of Form 20-F or Form 40-F.]
|
Form
20-F
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__X__ |
Form
40-F
|
_____ |
[Indicate
by check mark if the registrant is submitting the Form 6-K in paper as
permitted
by Regulation S-I Rule 101 (b)(1).]
|
Yes
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______
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No
|
__X__ |
[Indicate
by check mark if the registrant is submitting the Form 6-K in paper as
permitted
by Regulation S-T Rule 101 (b)(7).]
|
Yes
|
______
|
No
|
__X__ |
[Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission
pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]
|
Yes
|
______
|
No
|
__X__ |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
Item
1 -
Information Contained in this Form 6-K Report
Attached
as Exhibit I is a copy of an announcement of Seaspan Corporation,
dated February
21, 2006.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned,
thereunto
duly authorized.
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SEASPAN
CORPORATION
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| |
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| Date: February 28, 2006 | By: | /s/ Kevin M. Kennedy |
|
Kevin
M. Kennedy
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| Chief Financial Officer | ||
Exhibit
1
| Seaspan Corporation | |
| Unit 2, 7 th Floor, Bupa Centre | |
| 141 Connaught Road West | |
| Hong Kong, China | |
| c/o 2600 - 200 Granville Street | |
| Vancouver, BC | |
| Canada V6C 1S4 | |
| Tel: 604-482-8777 | |
| Fax: 604-648-9782 | |
| www.seaspancorp.com |
FOR
IMMEDIATE RELEASE
SEASPAN
CORPORATION SIGNS CONTRACT TO BUILD FOUR NEW 2500 TEU
VESSELS
-
12-Year Charters Arranged with CSCL Asia -
-
Company Also has Uncommitted Option for Eight Additional 2500 TEU
Vessels -
Hong
Kong, China, February 28, 2006 - Seaspan Corporation (“Seaspan”) (NYSE: SSW)
today announced that it has signed a contract to build four 2500
TEU vessels
from Jiangsu Yangzijiang Shipbuilding in China. These new orders
are incremental
to Seaspan’s original contracted fleet and will increase the company’s total
fleet to 29 vessels. The four newbuilding vessels will be delivered
between
September 2008 and March 2009. The total delivered cost is expected
to be
approximately $44.5 million per vessel, subject to certain pre-delivery
expenses
remaining at budgeted levels.
Seaspan
also announced that it has arranged simultaneous twelve-year charter
agreements
for these four vessels with China Shipping Container Lines (Asia)
Co. Ltd.
(“CSCL Asia”) at an initial rate of $16,750 per day, increasing to $16,900
per
day after six years. CSCL Asia is a subsidiary of China Shipping
Container Lines
Co. Ltd. (“CSCL”), the world’s sixth largest liner company. CSCL will guarantee
CSCL Asia’s performance under the charter parties.
Each
new
vessel is expected to contribute between $4.4 million and $4.8
million in
incremental EBITDA per annum upon delivery. For this purpose, EBITDA
shall mean
net earnings before interest, undrawn credit facility fees, taxes,
depreciation
and amortization of deferred financing fees. This will result in
an increase in
distributable cash when the vessels are delivered and operating.
The 2500 TEU
vessel size will complement Seaspan’s existing fleet consisting of 9600 TEU,
8500 TEU, 4250 TEU, and 3500 TEU vessels.
“These
new orders will allow Seaspan to enter a new segment of the containership
market
by building a new fleet of uniform ships,” said Gerry Wang, Chief Executive
Officer of Seaspan. “This acquisition also expands our long-standing
relationship with CSCL and is another step in our growth trajectory.
The
long-term charters agreed with CSCL Asia are consistent with our
acquisition
criteria which require that any expansion of our fleet be accretive
to
distributable cash flow; include agreements with a high quality
charterer; and
meet our careful assessment of credit and residual risk.”
Seaspan
also announced that, in addition to the firm order for the initial
four 2500 TEU
vessels, the company has the option to order an additional eight
2500 TEU
vessels, in two tranches of four vessels each, for the same price
as the initial
four. Seaspan has made no commitment, financial or otherwise, to
build any of
the option vessels. If the additional vessels are built, CSCL Asia
would have
the option to charter the second group of four vessels under the
same terms as
the first four. The last group of four vessels would only be built
if acceptable
long-term charters were arranged. Seaspan would have until June
30, 2006 to
exercise these options.
“We
have
structured this transaction in a way that provides us with optimal
flexibility
and minimal risk. However, we think it is prudent to have locked
in the option
to expand our fleet. We have already seen interest from our existing
customers,
as well as other major shipping lines to potentially enter into
long-term
charters for these vessels, should we decide to build them,” said Mr.
Wang.
Seaspan
Management Services Limited (“SMSL”) will supervise the construction of the new
vessels and operate the ships for Seaspan at a fixed rate of $4,000
per day
through 2011. Jiangsu Yangzijiang Shipbuilding, which is building
the vessels,
is located on the Yangtze River in the Jiangsu Province of China.
The yard has
been in business for over 30 years and is one of the largest private
shipyards
in China. Predecessor companies of SMSL successfully built barges
and tug hulls
at the yard in the 1990s. The SMSL technical team will, as with
other
newbuilding orders, drive the ship design and oversee the construction,
to
ensure uniformity with the existing fleet.
The
company is in the process of arranging long-term debt financing
for the firm
order, which is expected to be in place within 6 weeks.
About
Seaspan
Seaspan
owns containerships and charters them pursuant to long-term fixed-rate
charters.
Seaspan currently owns a fleet of 15 containerships consisting
of thirteen 4250
TEU vessels and two 8500 TEU vessels. Over approximately the next
17 months,
Seaspan will add 14 additional vessels to its fleet, including
six 4250 TEU
vessels, two 9600 TEU vessels and two 3500 TEU vessels. Today’s transaction will
add four 2500 TEU vessels to the fleet.
Seaspan’s
common shares are listed on the New York Stock Exchange under the
symbol
“SSW.”
Contacts:
Seaspan
Corporation
Mr.
Kevin
M. Kennedy
Chief
Financial Officer
(604)
482-8777
Fax:
(604) 648-9782
www.seaspancorp.com
OR
Brunswick
Group LLC
Nina
Devlin/Erin Moore
(212)
333-3810