UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
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___________________
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FORM
6-K
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___________________
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REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report: August 8, 2006
Commission
File Number 1-32591
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_____________
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SEASPAN
CORPORATION
(Exact
name of Registrant as specified in its Charter)
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______________
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Unit
2, 7th
Floor, Bupa Centre
141
Connaught Road West
Hong
Kong
China
(Address
of principal executive offices)
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______________
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[Indicate
by check mark whether the registrant files or will file annual reports
under
cover of Form 20-F or Form 40-F.]
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Form
20-F
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__X__ |
Form
40-F
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_____ |
[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).]
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Yes
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______
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No
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__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).]
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Yes
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______
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No
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__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.]
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Yes
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______
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No
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__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
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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| Date: August 8, 2006 | By: | /s/ Kevin M. Kennedy |
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Kevin M. Kennedy |
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| Chief Financial Officer | ||
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Exhibit
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| Seaspan Corporation | |
| Unit 2, 7th 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
-
12-Year Charters Arranged with Mitsui O.S.K. Lines, Ltd.
-
Hong
Kong, China, August 8, 2006 - Seaspan Corporation (“Seaspan”) (NYSE: SSW) today
announced that it has signed contracts to build four 5100 TEU vessels at
Hyundai
Heavy Industries Co., Ltd. in South Korea. These new orders will increase
Seaspan’s total fleet to 37 vessels. The four newbuilding vessels will be
delivered between April and December 2009. The total delivered cost is
expected
to average approximately $83.4 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 Mitsui O.S.K. Lines, Ltd. (“MOL”) of Japan at a rate
of $28,880 per day. MOL is one of the largest global shipping companies
and its
container line is the world’s 11th largest in terms of TEU
capacity.
Each
new
vessel is expected to contribute between $8.5 million and $9.0 million
in
incremental EBITDA per annum upon delivery. For this purpose, EBITDA (which
is a
non-GAAP measure) means net earnings before interest, undrawn credit facility
fees, taxes, depreciation and amortization of deferred financing fees.
This
should result in an increase in distributable cash when the vessels are
delivered and operating. The 5100 TEU vessel size will complement Seaspan’s
existing fleet consisting of 9600 TEU, 8500 TEU, 4250 TEU, 3500 TEU and
2500 TEU
vessels.
“We
are
extremely excited to enter into our first charters with a Japanese liner
major,”
said Gerry Wang, Chief Executive Officer of Seaspan. “MOL is a wonderful
addition to our portfolio of customers with their investment grade credit
rating
and excellent business reputation. In addition, we are pleased to execute
our
first shipbuilding contracts with HHI, the global leader in the construction
of
container vessels. This project brings diversification in terms of customer,
vessel size and shipbuilder to our company while meeting our strict return
and
credit risk criteria.”
Seaspan
Management Services Limited (“SMSL”) will supervise the construction of the new
vessels and, upon their delivery, operate the ships for Seaspan at an expected
rate of $4,800 per day.
HHI,
based in Ulsan, South Korea, is world’s largest shipbuilder and has built over
270 containerships during its 34 years in operation.
The
company is in the process of arranging long-term debt financing for this
order.
About
Seaspan
Seaspan
owns containerships and charters them pursuant to long-term fixed-rate
charters.
Seaspan currently owns a fleet of 17 containerships consisting of fifteen
4250
TEU vessels and two 8500 TEU vessels. Over approximately the next three
years,
Seaspan will add 20 additional vessels to its fleet, including four 4250
TEU
vessels, two 9600 TEU vessels, two 3500 TEU vessels, eight 2500 TEU vessels
and
the four 5100 TEU announced today.
Seaspan’s
common shares are listed on the New York Stock Exchange under the symbol
“SSW.”
-more-
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
release contains forward-looking statements (as defined in Section 21E of
the Securities Exchange Act of 1934, as amended) which reflect management’s
current views with respect to certain future events and performance, including
statements regarding: future acquisitions by Seaspan and other potential
financial and other benefits relating to the charter contracts. The following
factors are among those that could cause actual results to differ materially
from the forward-looking statements, which involve risks and uncertainties,
and
that should be considered in evaluating any such statement; early termination
or
breach of one or more of the long-term charter contracts; changes in production
of or demand for our vessels, either generally or in particular regions;
potential breach of the newbuilding contracts by any of the parties, potential
delays or non-delivery of the newbuildings; changes in applicable industry
regulations; and other factors described from time to time in the reports filed
by Seaspan with the SEC, including our Registration Statement on Form F-1,
our
Annual Report on Form 20-F, when filed, and our reports on Form
6-K.
Contact:
Seaspan
Corporation
Mr.
Kevin
M. Kennedy
Chief
Financial Officer
(604)
482-8777
Fax:
(604) 648-9782
www.seaspancorp.com