Seaspan intends to fund the construction of its five newbuilding containerships and the acquisition of the two existing vessels initially with existing cash and new debt financing. Seaspan is considering various sources of debt financing to which it has access. Seaspan will supervise the construction of all nine newbuilding vessels and manage all 13 vessels included in these transactions.
Loan Facility Transactions
In January 2013, Seaspan entered into a LIBOR-based term loan facility with an Asian bank for loan facilities in the amount of up to $340.0 million to be used towards the refinancing of existing vessels.
Subsequent Events
On April 12, 2013, Seaspan declared a cash dividend of $0.59375 per share on its Series C preferred shares (NYSE:SSW PR C) for the period from January 30, 2013 to April 29, 2013, and a cash dividend of $0.496875 per share on its Series D preferred shares (NYSE:SSW PR D) for the period from January 30, 2013 to April 29, 2013. The dividends, representing a total distribution of $9.9 million, were paid on April 30, 2013 to all Series C and Series D preferred shareholders of record as of April 29, 2013.
On April 25, 2013, Seaspan entered into a term loan facility with an Asian bank in the amount of up to $174.0 million to be used to fund the construction of two 14000 TEU newbuilding containerships to be chartered to Yang Ming Marine.
On April 26, 2013, Seaspan declared quarterly dividends of $0.3125 per Class A common share. The dividend is payable on May 30, 2013 to all shareholders of record as of May 20, 2013.
Results for the Quarter Ended March 31, 2013
The following table summarizes vessel utilization for the quarter ended March 31, 2013:
First Quarter ----------------------- 2013 2012 ----------- ----------- Vessel Utilization: Ownership Days 5,850 5,591 Less Off-hire Days: Scheduled 5-Year Survey - (44) Unscheduled Off-hire(1) (230) (7) ----------- ----------- Operating Days 5,620 5,540 ----------- ----------- ----------- ----------- Vessel Utilization 96.1% 99.1% ----------- ----------- ----------- ----------- ----------------------------------- (1) Unscheduled off-hire includes days related to vessels off-charter
Seaspan had 69 vessels in operation throughout the first quarter of 2013. Revenue is determined primarily by the number of operating days, and ship operating expense is determined primarily by the number of ownership days.
The following table summarizes Seaspan's consolidated financial results for the quarters ended March 31, 2013 and 2012:
Quarter Ended March 31, Increase --------------------------- ----------------------- 2013 2012 Days % ------------- ------------- ----------- -----------Operating days 5,620 5,540 80 1.4%Ownership days 5,850 5,591 259 4.6%Financial Summary Quarter Ended(in millions of USD) March 31, Change ------------------------- ------------------------ 2013 2012 $ % ------------ ------------ ------------ -----------Revenue $ 164.9 $ 153.4 $ 11.5 7.5%Ship operating expense 37.5 34.6 3.0 8.7%Depreciation and amortization expense 42.8 37.9 4.8 12.7%General and administrative expense 7.8 5.9 1.9 33.2%Operating lease expense 1.1 - 1.1 100.0%Interest expense 15.5 17.0 (1.5) (8.8%)Undrawn credit facility fees 0.4 0.8 (0.4) (50.7%)Change in fair value of financial instruments 2.7 4.7 (2.0) (43.0%)
