Hong Kong shipping firm Seaspan Corporation (NYSE: SSW) yesterday submitted a prospectus to the Tel Aviv Stock Exchange (TASE) for a NIS 450 million Series A bond issue to the public. Leader Underwriters, managed by acting CEO Ranen Cohen-Orgad, is leading the issue.
Seaspan, incorporated under Marshall Islands law, leases cargo ships to shipping companies all over the world. The company designs and builds cargo ships according to the customer's requirements and also maintains ships, including crew and management.
A presentation published for the issue by Seaspan shows that it has 4,300 employees, 4,100 seamen and the rest staff workers, on its 112 vessels. The average age of the ships is six years. Seaspan says that it has signed leases that will generate $5.1 billion in revenue. The average period until the expiry of Seaspan's leases is five years.
Seaspan's market cap is $1.7 billion, following a 60% negative adjusted yield over the past five years. The company reports that it is planning to list its shares for trading on the TASE according to the dual registration rules simultaneously with its bond issue.
Seaspan last week reported its results for the first nine months of 2018. Revenue totaled $801.4 million, 30% more than in the corresponding period last year. The company's operating profit rose 50% to $335.6 million, while its net profit soared 85% to $215.7 million.
Seaspan is still controlled by its founders, the Washington family, which currently holds 34% of its shares. Canadian insurance company Fairfax Financial Holdings this year joined the controlling core and holds 22% of Seaspan following a $500 million investment in 2018 (half share capital and half debt), and has undertaken to invest the same amount in 2019.
Published by Globes, Israel business news - en.globes.co.il - on November 5, 2018
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