Fairfax Financial Holdings, best known for its property and insurance investments, has agreed to take on up to $250m of debt for Canadian tonnage provider, Seaspan. Fairfax will invest $250m in exchange for the issuance by Seaspan of 5.5% interest bearing unsecured debentures and Class A common share purchase warrants. Seaspan said it intends to use the proceeds to fund future growth initiatives, debt repayment and for general corporate purposes.
Dennis Washington, whose family is Seaspan’s largest shareholder, commented, “The support from an organisation with the quality of Fairfax and track record of [chairman] Prem Watsa validates the investment merits of Seaspan. Fairfax aligns with our long-term vision for Seaspan and we look forward to a very long relationship with them.”
Fairfax will have the right to nominate two independent directors to the board of directors of Seaspan.
Seaspan’s managed fleet, including five newbuildings, consists of 110 containerships representing a total capacity of approximately 900,000 teu.
Last year saw two of Seaspan’s longest serving and most famous names – Gerry Wang and Graham Porter – step down from the organisation.
