Container ship owner Seaspan (NYSE:SSW) has priced and sold a new fixed-to-floating rate preferred issue with an initial coupon of 8%.
They will be selling 6 million shares. The coupon will be fixed until 10/30/2023 at which time it will begin to float at 3 month Libor plus a spread of 5.008%–kind of a skimpy spread in our opinion–although we need to do more due diligence on SSW before deciding just how skimpy.
Terms are the normal terms–cumulative, redeemable and perpetual.
The OTC Grey Market symbol will be SSWPP and we expect trading to commence immediately.
The permanent NYSE ticker will be SSW-I when the issue moves to the big board in a week or so.
Thanks to Eugene who noticed this new issue at the same time I did–his note motivated me to work ‘after hours’.
The company has 2 baby bonds outstanding as well as 4 preferred issues–coupons range from 6.375% to 8.25%. The company could possibly use some proceeds to redeem outstanding debt or preferred per their filing.