ICBC contributes $32.6 million to $150 million loan to finance the acquisition of 13,100 TEU newbuilding vessel

On August 19, 2011, the Industrial and Commercial Bank of China (ICBC) and the Bank of Tokyo Mitsubishi UFJ, Ltd. (BTMU) entered into non-recourse loan facility agreement in an amount up to $150,000,000 USD with Seaspan Corporation. The facility is divided into two tranches: Tranche A of $117.4 million funded by BTMU., and tranche B of $32.6 million funded by ICBC. The loan is intended for the financing of the acquisition of one 13,100 TEU newbuilding vessel. The interest of the loan is payable quarterly and is calculated at the LIBOR rate for the relevant three-month period plus a margin of 0.99% for tranche A and 4.75% for tranche B. The weighted average rate of interest including the margin is 2.35% on December 31, 2011. The recipient company is subject to a commitment fee of 1% per annum calculated on the undrawn amounts under the facility. The term of the lease is 12 years beginning from the vessel’s delivery date. The first repayment is due at the beginning of year nine, and a final payment of approximately $12.3 million will be required upon maturity of the tranche in 2024. As of December 31, 2011, the carrying value of the vessel being funded under this facility was $89,790,000 (2010— $69,072,000), and the vessel had not yet been delivered. This project is currently in implementation.

Additional details

1. Seaspan is a leading independent charter owner and operator of containerships with industry-leading integrated ship management services. Seaspan charters its vessels primarily pursuant to long-term, fixed-rate time charters to seven of the world's top eight container shipping liners. Seaspan's fleet consists of 123 containerships, including five vessels Seaspan has agreed to purchase, which have not yet been delivered, representing a total capacity of approximately 1,023,000 TEU. Seaspan's current operating fleet of 118 vessels has an average age of approximately seven years and an average remaining lease period of approximately four years, on a TEU-weighted basis.

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