SSW issued a press release confirming the conclusion of their tender offer for $15. Given that the tender offer was subject to pro-ration the spread remained wide throughout the process. Additionally, an odd lot provision of 99 shares or less guaranteed the tender for small holders. I was able to participate on a total of 198 shares through 2 different accounts, although my second lot of 99 was not as profitable as my first because it took a little while to get the second account set up. While the money hasn’t hit my accounts yet, there is a contra indicator in them and I expect to see the cash in the next 48-72 hours.
The 99 shares in my Scottrade account were purchased for 12.07 with a $7 trade fee and a $25 tender fee for a total profit of $258.
The 99 shares in my Vanguard account were purchased for 13.88 with a $7 trade fee and no tender fee for a total profit of $104.
So, all in that is $362 of profit with virtually no risk. Only 36 bps on the total portfolio, but I’ll take it.
Seaspan Corporation (NYSE:SSW) (“Seaspan”) today announced the preliminary results of its tender offer for the purchase of up to 10,000,000 of its Class A common shares at a price of $15.00 per share, which expired at 12:00 midnight, New York City time, on Wednesday, January 11, 2012. Based on the preliminary count by American Stock Transfer & Trust Company, LLC, the depositary for the tender offer, a total of 21,290,859 shares of Seaspan’s Class A common shares were properly tendered and not properly withdrawn, including 1,381,415 shares that were tendered through notice of guaranteed delivery. In accordance with the terms and conditions of the tender offer, and based on the preliminary count by the depositary, Seaspan expects to accept for purchase 11,300,000 shares of its Class A common shares at a purchase price of $15.00 per share, for an aggregate cost of approximately $169.5 million, excluding fees and expenses relating to the tender offer. The total number of shares expected to be purchased in the tender offer includes an additional 1,300,000 shares purchased pursuant to Seaspan’s right to increase the number of shares purchased by no more than 2 percent of its outstanding shares, without amending or extending the tender offer.