By Paul A. Harris
Portland, Ore., July 9 – Seaspan Corp. priced an upsized $750 million issue of eight-year senior “blue transition” notes (BB-/BB) at par to yield 5½% on Friday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 5½% to 5¾% yield talk. Early guidance was in the low 6% area.
The deal was heard to be well oversubscribed and to have been propelled into the market on $250 million of reverse inquiry.
Joint global coordinator and co-sustainability structuring adviser Citigroup was the lead bookrunner. Wells Fargo was also a global coordinator and bookrunner. Additional bookrunners were BMO, BofA and BNP Paribas.
Proceeds will be used to acquire or refinance, in whole or in part, new and/or existing eligible projects.
The “blue transition” designation hinges on green bond principles. The Hong Kong-based containership company intends to use the proceeds from the bonds to reduce the environmental impacts of the shipping industry by making investments in LNG-powered ships, which are a viable option for the low-carbon transition of the shipping sector, according to Sustainalytics, which conferred a second party opinion on the deal.
| Issuer: | Seaspan Corp.
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| Amount: | $750 million, increased from $500 million
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| Maturity: | Aug. 1, 2029
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| Securities: | Senior blue transition notes
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| Global coordinators: | Citigroup and Wells Fargo
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| Sustainability advisers: | Citigroup and Wells Fargo
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| Bookrunners: | Citigroup (lead), Wells Fargo, BMO, BofA and BNP Paribas
|
| Co-managers: | SG, DNB and CIBC
|
| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
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| Spread: | 440 bps
|
| First call: | Aug. 1, 2024 at 102.75
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| Trade date: | July 9
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| Settlement date: | July 14
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| Ratings: | S&P: BB-
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Roadshow
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