Seaspan, a wholly owned subsidiary of Atlas Corp. (“Atlas”) (NYSE:ATCO), announced the closing of Seaspan’s sustainability-linked loan (“SLL”). The SLL will be a $200 million increase to Seaspan’s portfolio financing program, the first of its kind in the containership leasing industry. The SLL received a BBB- senior secured rating from Kroll Bond Rating Agency.
The SLL consists of a $200 million term loan with a tenor of six years. The expanded Program is comprised of a $300 million revolving credit facility and approximately $1.5 billion of term loan commitments, with staggered maturities between 2024 and 2026. Proceeds from the SLL are intended to pay down the RCF, bolstering liquidity and capacity for growth opportunities.
Bing Chen, Chief Executive Officer and Interim Chief Financial Officer of Atlas said, “Our execution of the SLL marks the first sustainability-linked financing in the containership leasing space and aligns Seaspan’s long-standing commitment to sustainability with our capital structure strategy. Further, our team has been consistently executing on quality growth and capital structure improvement through a difficult period for the global capital markets. We are proud of the partnerships we have fostered over the last 20 years – with both liner customers and financial partners – which have made this milestone possible.”
Matthew Tinari, Head of Corporate Development added, “We are excited to be in a position to drive innovation in both ship finance and sustainability-linked lending, which aligns with our corporate goals and key priorities for Seaspan.”
- Landmark for container shipping – The SLL is the first sustainability-linked loan in the containership leasing industry.
- Second Party Opinion from Sustainalytics – Sustainalytics, a leading independent provider of ESG research and ratings, has confirmed the SLL as being aligned with the Sustainability-Linked Loan Principles (SLLP).
- Aligned with Poseidon Principles – Framework inspired by the Poseidon Principles, the global framework by which financial institutions can assess the climate alignment of their ship finance portfolios.
- Aligns sustainability targets with financials – SLL pricing is adjusted based on Seaspan’s achievements measured against two key performance indicators (KPIs).
- The first aims at measuring the alignment of the carbon intensity of the collateral vessels with the International Maritime Organization (IMO) 2050 decarbonization trajectory.
- The second aims at fostering cooperation with charterers in order to advance the decarbonization agenda, by seeking to include sustainability-linked provisions in future charter contracts, hence creating an innovative value chain approach to decarbonization.
Advisors & Lenders
The SLL is fully underwritten by Société Générale and BNP Paribas as mandated lead arrangers, underwriters and bookrunners, with Société Générale acting as the sole Sustainability Coordinator.