6-K 1 atco-6k_20200930.htm 6-K atco-6k_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

Commission File Number 333-229312  

 

ATLAS CORP.

(Exact name of Registrant as specified in its Charter)

 

23 Berkeley Square

London, United Kingdom

W1J 6HE

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F      Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(1).     Yes      No  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7).     Yes      No  

 

 

 


Item 1 — Information Contained in this Form 6-K Report

This report on Form 6-K of Atlas Corp., or this Report, is hereby incorporated by reference into: the Registration Statement of Atlas Corp. filed with the Securities and Exchange Commission, (the “SEC”), on May 30, 2008 on Form F-3D (Registration No. 333-151329), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 31, 2011 on Form S-8 (Registration No. 333-173207), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on June 20, 2013 on Form S-8 (Registration No. 333-189493), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 24, 2012 on Form F-3 (Registration No. 333-180895), as amended on March 22, 2013 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 29, 2014 on Form F-3 (Registration No. 333-195571), as amended on March 6, 2017, April 19, 2017 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on November 28, 2014 on Form F-3 (Registration No. 333-200639), as amended on March 6, 2017, April 19, 2017 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on November 28, 2014 on Form S-8 (Registration No. 333-200640), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 12, 2015 on Form F-3D (Registration No. 333-202698), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on June 24, 2016 on Form S-8 (Registration No. 333-212230), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on August 25, 2017 on Form F-3 (Registration No. 333-220176), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on December 21, 2017 on Form S-8 (Registration No. 333-222216), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 13, 2018 on Form F-3D (Registration No. 333-224291), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 13, 2018 on Form F-3 (Registration No. 333-224288), as amended on May 3, 2018, May 7, 2018 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on September 28, 2018 on Form F-3 (Registration No. 333-227597), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on January 18, 2019 on Form F-3 (Registration No. 333-229312), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 27, 2019 on Form F-3 (Registration No. 333-230524), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on May 11, 2020 on Form F-3 (Registration No. 333-238178), and the Registration Statement of Atlas Corp. filed with the SEC on June 30, 2020 on Form S-8 (Registration No. 333-239578).

Seaspan Corporation Financial Information

Part I to this Report contains certain financial information of Seaspan Corporation, a wholly owned subsidiary of Atlas Corp., for the quarter ended September 30, 2020.

Fairfax Transaction Involving Common Shares of Atlas Corp. and Notes of Seaspan Corporation

Fairfax Financial Holdings Ltd. and its affiliates (“Fairfax”) publicly announced on December 2, 2020 that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II in a transaction that, subject to customary closing conditions, including various regulatory approvals, is expected to close in early 2021.  Fairfax has informed Seaspan Corporation that up to 9,018,474 Common Shares of Atlas Corp., $13.0 million principal amount of Seaspan Corporation’s 5.50% Senior Notes due 2025 or $12.0 million principal amount of Seaspan Corporation’s 5.50% Senior Notes due 2026 may be transferred as part of the sale transaction involving RiverStone Europe.  Fairfax has undertaken that it will retain full operational control over any such securities of Atlas Corp. or Seaspan Corporation transferred as part of the RiverStone Europe transaction, including having sole control over all transfer, voting and related matters.

Press Releases

Attached as Exhibits 99.1 and 99.2, under Part II of this Report, are copies of announcements of Atlas Corp. and Seaspan Corporation, dated December 7, 2020 and December 16, 2020, respectively, which are incorporated by reference herein.

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

ATLAS CORP.

 

 

 

 

Date:  December 16, 2020

By:

 

/s/ Bing Chen

 

 

 

Bing Chen

 

 

 

Chief Executive Officer and Interim Chief Financial Officer

 

 

 

(Principal Financial and Accounting Officer)

 

 

 

 


 

INDEX

 

 

PART II — OTHER INFORMATION…………………………………………………………………………..      38

 

Item 1 — Exhibits………………………………………………………………………………………………...      38

 

Unless we otherwise specify, when used in this Report, the terms “Seaspan”, the “Company”, “we”, “our” and “us” refer to Seaspan Corporation and its subsidiaries. References to our “Manager” are to Seaspan Management Services Limited and its wholly-owned subsidiaries which provide us with all of our technical, administrative and strategic services.

 

 

 

 


SEASPAN CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1 — INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SEASPAN CORPORATION

Interim Consolidated Balance Sheets

(Unaudited)

(Expressed in millions of United States dollars)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

169.7

 

 

$

195.0

 

Accounts receivable

 

 

15.9

 

 

 

18.7

 

Due from related party (note 2)

 

 

8.0

 

 

 

 

Prepaid expenses and other

 

 

30.9

 

 

 

31.8

 

Net investment in lease (note 3)

 

 

10.5

 

 

 

35.2

 

 

 

 

235.0

 

 

 

280.7

 

 

 

 

 

 

 

 

 

 

Vessels (note 4)

 

 

6,461.8

 

 

 

5,707.1

 

Right-of-use assets (note 5)

 

 

868.1

 

 

 

957.2

 

Net investment in lease (note 3)

 

 

421.6

 

 

 

723.6

 

Goodwill

 

 

75.3

 

 

 

75.3

 

Other assets (note 6)

 

 

200.8

 

 

 

173.1

 

 

 

$

8,262.6

 

 

$

7,917.0

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

100.7

 

 

$

83.4

 

Deferred revenue

 

 

20.2

 

 

 

20.3

 

Long-term debt - current (note 7)

 

 

236.3

 

 

 

363.7

 

Operating lease liabilities - current (note 8)

 

 

158.7

 

 

 

159.7

 

Other financing arrangements - current (note 9)

 

 

57.7

 

 

 

134.6

 

Other long-term liabilities - current

 

 

3.8

 

 

 

7.8

 

 

 

 

577.4

 

 

 

769.5

 

 

 

 

 

 

 

 

 

 

Long-term debt (note 7)

 

 

2,986.1

 

 

 

2,696.9

 

Operating lease liabilities (note 8)

 

 

696.7

 

 

 

782.6

 

Other financing arrangements (note 9)

 

 

738.9

 

 

 

373.9

 

Other long-term liabilities

 

 

10.7

 

 

 

11.2

 

Derivative instruments (note 15(c))

 

 

68.3

 

 

 

50.2

 

Total liabilities

 

 

5,078.1

 

 

 

4,684.3

 

Shareholders’ equity (note 10):

 

 

 

 

 

 

 

 

Share capital

 

 

2.5

 

 

 

2.5

 

Treasury shares

 

 

 

 

 

(0.4

)

Additional paid in capital

 

 

3,556.7

 

 

 

3,452.9

 

Deficit

 

 

(354.1

)

 

 

(200.7

)

Accumulated other comprehensive loss

 

 

(20.6

)

 

 

(21.6

)

 

 

 

3,184.5

 

 

 

3,232.7

 

 

 

$

8,262.6

 

 

$

7,917.0

 

 

Basis of presentation (note 1(a))

Commitments and contingencies (note 13)

Subsequent events (note 16)

 

See accompanying notes to interim consolidated financial statements.

1


SEASPAN CORPORATION

Interim Consolidated Statements of Operations

(Unaudited)

(Expressed in millions of United States dollars)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

305.9

 

 

$

282.7

 

 

$

902.2

 

 

$

843.5

 

Operating expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ship operating

 

 

67.3

 

 

 

56.8

 

 

 

180.8

 

 

 

170.4

 

Depreciation and amortization

 

 

73.6

 

 

 

63.9

 

 

 

212.9

 

 

 

189.9

 

General and administrative

 

 

7.0

 

 

 

7.7

 

 

 

22.8

 

 

 

23.3

 

Operating leases (note 8)

 

 

36.0

 

 

 

38.2

 

 

 

111.3

 

 

 

116.3

 

Income related to modification of time charters

 

 

 

 

 

 

 

 

 

 

 

(227.0

)

 

 

 

183.9

 

 

 

166.6

 

 

 

527.8

 

 

 

272.9

 

Operating earnings

 

 

122.0

 

 

 

116.1

 

 

 

374.4

 

 

 

570.6

 

Other expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

40.7

 

 

 

52.4

 

 

 

134.5

 

 

 

170.5

 

Interest income

 

 

(0.3

)

 

 

(2.0

)

 

 

(1.2

)

 

 

(8.2

)

Loss on derivative instruments (note 15(c))

 

 

2.2

 

 

 

22.1

 

 

 

34.0

 

 

 

37.7

 

Other expenses

 

 

1.1

 

 

 

0.6

 

 

 

2.0

 

 

 

2.4

 

 

 

 

43.7

 

 

 

73.1

 

 

 

169.3

 

 

 

202.4

 

Net earnings

 

$

78.3

 

 

$

43.0

 

 

$

205.1

 

 

$

368.2

 

 

See accompanying notes to interim consolidated financial statements.

2


SEASPAN CORPORATION

Interim Consolidated Statements of Comprehensive Income

(Unaudited)

(Expressed in millions of United States dollars)

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

2020

 

 

2019

 

Net earnings

 

$

78.3

 

 

$

43.0

 

$

205.1

 

 

$

368.2

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified to net earnings during the period

   relating to cash flow hedging instruments (note 15(c))

 

 

0.3

 

 

 

0.3

 

 

1.0

 

 

 

0.8

 

Comprehensive income

 

$

78.6

 

 

$

43.3

 

$

206.1

 

 

$

369.0

 

 

See accompanying notes to interim consolidated financial statements.

 

 

3


SEASPAN CORPORATION

Interim Consolidated Statement of Shareholders’ Equity

(Unaudited)

(Expressed in millions of United States dollars, except number of shares)

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Number of

 

 

 

 

 

 

Additional

 

 

 

 

 

 

other

 

 

Total

 

 

 

 

common

 

 

Common

 

 

paid-in

 

 

 

 

 

 

comprehensive

 

 

shareholders'

 

 

 

 

shares

 

 

shares

 

 

capital

 

 

Retained earnings

 

 

loss

 

 

equity

 

Balance, June 30, 2020

 

 

 

249,219,800

 

 

$

2.5

 

 

$

3,556.0

 

 

$

(432.4

)

 

$

(20.9

)

 

$

3,105.2

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

78.3

 

 

 

 

 

 

78.3

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

0.3

 

Share-based compensation expense: Restricted Class A

   common shares, phantom share units, restricted

   stock units and stock options

 

 

 

 

 

 

 

 

 

0.7

 

 

 

 

 

 

 

 

 

0.7

 

Balance, September 30, 2020

 

 

 

249,219,800

 

 

$

2.5

 

 

$

3,556.7

 

 

$

(354.1

)

 

$

(20.6

)

 

$

3,184.5

 

 

See accompanying notes to interim consolidated financial statements.

4


 

SEASPAN CORPORATION

Interim Consolidated Statement of Puttable Preferred Shares and Shareholders’ Equity

(Unaudited)

(Expressed in millions of United States dollars, except number of shares)

Three months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Series D puttable

 

 

 

Number of

 

 

non-puttable

 

 

 

 

 

puttable

 

 

 

 

 

 

Additional

 

 

 

 

 

 

other

 

 

Total

 

 

preferred shares

 

 

 

common

 

 

preferred

 

Common

 

 

preferred

 

 

Treasury

 

 

paid-in

 

 

 

 

 

 

comprehensive

 

 

shareholders'

 

 

Shares

 

 

Amount

 

 

 

shares

 

 

shares

 

shares

 

 

shares

 

 

shares

 

 

capital

 

 

Deficit

 

 

loss

 

 

equity

 

Balance, June 30, 2019,

   carried forward

 

1,983,585

 

 

$

49.0

 

 

 

 

215,617,526

 

 

 

33,275,570

 

$

2.2

 

 

$

0.3

 

 

$

(0.4

)

 

$

3,450.0

 

 

$

(224.9

)

 

$

(22.1

)

 

$

3,205.1

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43.0

 

 

 

 

 

 

43.0

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

0.3

 

Dividends on Class A common

   shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27.0

)

 

 

 

 

 

(27.0

)

Dividends on preferred shares

(Series D, Series E, Series G,

Series H, Series I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18.2

)

 

 

 

 

 

(18.2

)

Accretion of puttable preferred

   shares with holder put option

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

 

 

 

(0.3

)

Exercise of puttable

   preferred shares with holder

   put option

 

(1,923,585

)

 

 

(47.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellation of put option on

   puttable preferred shares

 

(60,000

)

 

 

(1.5

)

 

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

 

 

 

1.5

 

Shares issued through dividend

   reinvestment program

 

 

 

 

 

 

 

 

30,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.3

 

Share-based compensation expense:

   Restricted Class A common

   shares, phantom share

   units, restricted stock

   units and stock options

 

 

 

 

 

 

 

 

1,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.7

 

 

 

(0.2

)

 

 

 

 

 

0.5

 

Balance, September 30, 2019

 

 

 

$

 

 

 

 

215,649,215

 

 

 

33,335,570

 

$

2.2

 

 

$

0.3

 

 

$

(0.4

)

 

$

3,452.5

 

 

$

(227.6

)

 

$

(21.8

)

 

$

3,205.2

 

 

See accompanying notes to interim consolidated financial statements.

5


 

SEASPAN CORPORATION

Interim Consolidated Statement of Shareholders’ Equity

(Unaudited)

(Expressed in millions of United States dollars, except number of shares)

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

Number of

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Number of

 

 

non-puttable

 

 

 

 

 

puttable

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

other

 

 

 

 

Total

 

 

 

 

common

 

 

preferred

 

Common

 

 

preferred

 

 

 

 

Treasury

 

 

 

 

paid-in

 

 

 

 

 

 

 

 

 

 

comprehensive

 

 

 

 

shareholders'

 

 

 

 

shares

 

 

shares

 

shares

 

 

shares

 

 

 

 

shares

 

 

 

 

capital

 

 

 

 

Deficit

 

 

 

 

loss

 

 

 

 

equity

 

Balance, December 31 , 2019 ,  carried forward

 

 

 

215,675,599

 

 

 

33,335,570

 

$

2.2

 

 

$

0.3

 

 

 

 

$

(0.4

)

 

 

 

$

3,452.9

 

 

 

 

$

(200.7

)

 

 

 

$

(21.6

)

 

 

 

$

3,232.7

 

Impact of accounting policy change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.3

)

 

 

 

 

 

 

 

 

 

(2.3

)

Adjusted balance, December 31, 2019

 

 

 

215,675,599

 

 

 

33,335,570

 

 

2.2

 

 

 

0.3

 

 

 

 

 

(0.4

)

 

 

 

 

3,452.9

 

 

 

 

 

(203.0

)

 

 

 

 

(21.6

)

 

 

 

 

3,230.4

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

205.1

 

 

 

 

 

 

 

 

 

 

205.1

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.0

 

 

 

 

 

1.0

 

Capital contribution from Atlas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100.0

 

Cancellation of preferred shares

 

 

 

33,335,570

 

 

 

(33,335,570

)

 

0.3

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on Class A common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(342.9

)

 

 

 

 

 

 

 

 

 

(342.9

)

Dividends on preferred shares

(Series  D, Series E,

Series G, Series H, Series  I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16.8

)

 

 

 

 

 

 

 

 

 

(16.8

)

Shares issued through dividend

    reinvestment program

 

 

 

7,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense: restricted common shares, phantom share units, restricted stock units and stock options

 

 

 

162,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.7

 

Treasury shares

 

 

 

37,778

 

 

 

 

 

 

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.4

 

Deconsolidation of Atlas

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.6

 

 

 

 

 

 

 

 

 

 

3.6

 

Balance, September 30, 2020

 

 

 

249,219,800

 

 

 

 

 

2.5

 

 

$

 

 

 

 

$

 

 

 

 

$

3,556.7

 

 

 

 

$

(354.1

)

 

 

 

$

(20.6

)

 

 

 

$

3,184.5

 

 

See accompanying notes to interim consolidated financial statements.

6


 

SEASPAN CORPORATION

Interim Consolidated Statement of Puttable Preferred Shares and Shareholders’ Equity

(Unaudited)

(Expressed in millions of United States dollars, except number of shares)

Nine months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Series D puttable

 

 

 

Number of

 

 

non-puttable

 

 

 

 

 

puttable

 

 

 

 

 

 

Additional

 

 

 

 

 

 

other

 

 

Total

 

 

preferred shares

 

 

 

common