Seaspan Corporation To Offer Common Shares

by Mike Godfrey, for LawAndTax-News.com, Washington

07 April 2008

Shipping firm, Seaspan Corporation announced on Monday that it plans to offer approximately 7,000,000 common shares in a registered public offering, subject to market conditions.

In connection with the offering, the Company expects to grant the underwriters an option to purchase up to 1,050,000 additional common shares to cover over-allotments, if any.

In addition and concurrently with the closing of the public offering, certain executive officers and directors of Seaspan, certain affiliates of Seaspan's manager, and certain of their executive officers have agreed that they will purchase directly from Seaspan an aggregate of USD18,075,000 worth of common shares at the public offering price.

Seaspan revealed that it intends to use the net proceeds from the public offering and the concurrent sale for general corporate purposes, including repayment of indebtedness, capital expenditures, working capital and to make vessel acquisitions.

Merrill Lynch & Co., Citi and Goldman, Sachs & Co. will act as joint book-running managers of the public offering. Dahlman Rose & Company will act as manager.

Seaspan owns containerships and charters them pursuant to long-term fixed-rate charters. Seaspan's contracted fleet of 68 containerships consists of 29 containerships in operation, and 39 containerships to be delivered over approximately the next 4 years.

The Corporation's customer base consists of seven of the world's largest, publicly traded liner companies, including China Shipping Container Lines, A.P. Moller-Maersk, Mitsui O.S.K. Lines, Hapag-Lloyd, COSCO Container Lines, K-Line and CSAV.

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