Information Contained in this Report on Form 6-K
On November 22, 2022, Seapeak LLC (Seapeak) entered
into shipbuilding contracts for the construction of five,
174,000-cubic meter
M-type, Electronically
Controlled, Gas Admission (or MEGA) propulsion LNG carrier
newbuildings. The LNG carriers will be constructed by Samsung Heavy
Industries Co., Ltd. for a total fully built-up cost of approximately
$1.1 billion and are scheduled for delivery in 2027. Upon
their deliveries, the five LNG carriers will each operate under a
fixed-rate time-charter contract with an international energy major
for a firm period of ten years, each of which can be extended at
the option of the charterer. Seapeak expects to finance the initial
newbuilding construction instalment payments by way of an equity
contribution from investment funds managed by its sponsor,
Stonepeak. In due course, Seapeak expects to secure long-term debt
funding to finance the remaining construction costs.
Cautionary Statement Regarding Forward-Looking
Statements
This Report on Form 6-K
contains forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended,
and Section 21E of the U.S. Securities Exchange Act of 1934,
as amended. Statements about the expected construction, timing,
completion, cost, financing and operation of the five new LNG
carrier newbuildings, other than historical facts, constitute
forward-looking statements. The words “expect,” “believe,”
“anticipate,” “plan,” “intend,” “estimate,” “may,” “will” or
similar words are intended to identify forward-looking statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements, all of which are qualified in their
entirety by reference to the following cautionary statements.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and involve a number of assumptions, risks and
uncertainties that could cause actual results to differ materially
from such forward-looking statements. Deliveries of the newbuilding
vessels may be delayed due to events affecting the shipyards and
Seapeak may be unable to complete one or more of the shipbuilding
contracts or fixed-rate time-charter contracts on the terms
described in this Report on Form 6-K or at all because of a number of
factors, including, among others: (i) the occurrence of any
event, change or other circumstances that could give rise to the
termination of any of the shipbuilding contracts or fixed-rate
time-charter contracts, (ii) unexpected costs, liabilities or
delays, and (iii) fluctuations in economic or geopolitical
conditions. The forward-looking statements represent Seapeak’s
views as of the date on which such statements were made. Additional
factors are discussed in Seapeak’s filings with the SEC, which are
available for review at www.sec.gov. Seapeak expressly
disclaims a duty to provide updates to forward-looking statements,
whether as a result of new information, future events or other
occurrences, except as required by applicable law.