Seaspan Container Lines Finances 14 Container Vessels

In November 2004, Seaspan Container Lines Ltd. (SCLL), a joint venture between Seaspan International Ltd. (a member of the Washington Marine Group—Canada’s largest marine transportation enterprise) and Tiger Container Shipping Company Ltd., and its subsidiary companies entered into and completed three separate credit facilities for the financing of five 4,250 teu containerships (Project 1), two 8,500 teu containerships (Project 2) and five 4,250 teu containerships and two 9,600 teu containerships (Project 3). The aggregate amount of the financings was US$685,491,200.

The 14 container vessels involved in these transactions are part of a fleet of 23 vessels constructed, or to be constructed, by Samsung Heavy Industries Co., Ltd. in Korea and registered in Cyprus. Six of the vessels have already been delivered and are time-chartered to China Shipping (Group) Company (CSG) of Shanghai, People’s Republic of China, but are being operated and managed by affiliates of SCLL. The remaining eight vessels being financed, including the 9,600 teu vessels, which are currently the largest ships being designed and constructed in the world, will be time-chartered to CSG upon completion.

These financings include a senior and junior component and involve, as senior lenders, Fortis Capital Corp. (Fortis), Credit Suisse, DVB Bank AG (DVB), Landesbank Hessen-Thuringen Girozentrale, Deutsche Schiffsbank Aktiengesellschaft, Crédit Industriel et Commercial, NIB Capital Bank NV (NIB), the Governor and Company of the Bank of Scotland (BoS) and the Export–Import Bank of Korea and, as junior lenders, NIB, BoS, DVB and Fortis.

SCLL and its subsidiary companies were represented in all transactions by George Burke, Sharon Dos Remedios and Christa Scowby of Bull, Housser & Tupper in Vancouver. The senior lenders for all three projects were represented by David Smith, Tim Elliott and Adam Parkin of Allen & Overy LLP in London, UK. The junior lenders for Project 1 and Project 2 were represented by Arlene Dourish, Lucy French and Sarah Dean of Stephenson Harwood in London, UK. The junior lender for Project 3 was represented by Richard Stock, Arthur Chan and Rachel Wong of Johnson Stokes & Master in Hong Kong.

Lawyer(s)

George D. Burke Sharon Dos Remedios Christa Scowby

Firm(s)