Seaspan Dividend Distributions

NYSE: SSW

Description: Common Shares

Announce
Date		 Ex-Dividend
Date		 Record
Date		 Pay
Date		 Total Distribution (per share) Tax Reporting Information
Amount of Total Distribution Treated as a Dividend (per common share) % Per Common Share Treated as a Dividend Amount of Total Distribution Treated other than as a Dividend (per common share) % Per Common Share Treated other than as a Dividend
                 
2013                
7-Feb-13 14-Feb-13 19-Feb-13 27-Feb-13 $0.25000        
5-Mar-13 16-May-13 20-May-13 30-May-13 $0.31250        
                 
2012                
3-Feb-12 10-Feb-12 13-Feb-12 22-Feb-12 $0.18750 $0.00000 0.0% $0.18750 100.0%
16-May-12 24-May-12 29-May-12 8-Jun-12 $0.25000 $0.00000 0.0% $0.25000 100.0%
1-Aug-12 9-Aug-12 13-Aug-12 22-Aug-12 $0.25000 $0.00000 0.0% $0.25000 100.0%
30-Oct-12 9-Nov-12 13-Nov-12 23-Nov-12 $0.25000 $0.00000 0.0% $0.25000 100.0%
Total 2012       $0.93750 $0.00000 0.0% $0.93750 100.0%
                 
2011                
20-Jan-11 26-Jan-11 28-Jan-11 11-Feb-11 $0.12500 $0.00000 0.0% $0.12500 100.0%
5-May-11 11-May-11 14-May-11 23-May-11 $0.18750 $0.00000 0.0% $0.18750 100.0%
4-Aug-11 11-Aug-11 15-Aug-11 22-Aug-11 $0.18750 $0.00000 0.0% $0.18750 100.0%
1-Nov-11 9-Nov-11 14-Nov-11 23-Nov-11 $0.18750 $0.00000 0.0% $0.18750 100.0%
Total 2011       $0.68750 $0.00000 0.0% $0.68750 100.0%
                 
2010                
22-Jan-10 28-Jan-10 1-Feb-10 12-Feb-10 $0.10000 $0.01989 19.9% $0.08011 80.1%
27-Apr-10 5-May-10 7-May-10 18-May-10 $0.10000 $0.01989 19.9% $0.08011 80.1%
27-Jul-10 5-Aug-10 9-Aug-10 20-Aug-10 $0.12500 $0.02486 19.9% $0.10014 80.1%
27-Oct-10 29-Oct-10 2-Nov-10 12-Nov-10 $0.12500 $0.02486 19.9% $0.10014 80.1%
Total 2010       $0.45000 $0.08951 19.9% $0.36050 80.1%
                 
2009                
6-Jan-09 29-Jan-09 2-Feb-09 16-Feb-09 $0.47500 $0.05646 11.9% $0.41854 88.1%
28-Apr-09 29-Apr-09 1-May-09 12-May-09 $0.10000 $0.01189 11.9% $0.08811 88.1%
5-Aug-09 7-Aug-09 11-Aug-09 20-Aug-09 $0.10000 $0.01189 11.9% $0.08811 88.1%
3-Nov-09 5-Nov-09 9-Nov-09 19-Nov-09 $0.10000 $0.01189 11.9% $0.08811 88.1%
Total 2009       $0.77500 $0.09211 11.9% $0.68289 88.1%
                 
2008                
24-Jan-08 30-Jan-08 1-Feb-08 15-Feb-08 $0.47500 $0.07309 15.4% $0.40191 84.6%
28-Apr-08 30-Apr-08 2-May-08 12-May-08 $0.47500 $0.07309 15.4% $0.40191 84.6%
30-Jul-08 4-Aug-08 6-Aug-08 15-Aug-08 $0.47500 $0.07309 15.4% $0.40191 84.6%
30-Oct-08 3-Nov-08 5-Nov-08 14-Nov-08 $0.47500 $0.07309 15.4% $0.40191 84.6%
Total 2008       $1.90000 $0.29236 15.4% $1.60764 84.6%
                 
2007                
23-Jan-07 25-Jan-07 29-Jan-07 13-Feb-07 $0.44625 $0.12049 27.0% $0.32576 73.0%
16-Apr-07 26-Apr-07 30-Apr-07 11-May-07 $0.44625 $0.12049 27.0% $0.32576 73.0%
18-Jul-07 26-Jul-07 30-Jul-07 10-Aug-07 $0.44625 $0.12049 27.0% $0.32576 73.0%
29-Oct-07 30-Oct-07 2-Nov-07 14-Nov-07 $0.44625 $0.12049 27.0% $0.32576 73.0%
Total 2007       $1.78500 $0.48196 27.0% $1.30304 73.0%
                 
2006                
10-Feb-06 21-Feb-06 23-Feb-06 9-Mar-06 $0.42500 $0.16800 39.6% $0.25700 60.4%
17-Apr-06 26-Apr-06 28-Apr-06 11-May-06 $0.42500 $0.03500 8.3% $0.39000 91.7%
20-Jul-06 26-Jul-06 28-Jul-06 11-Aug-06 $0.42500 $0.03500 8.3% $0.39000 91.7%
23-Oct-06 25-Oct-06 27-Oct-06 10-Nov-06 $0.42500 $0.03500 8.3% $0.39000 91.7%
Total 2006       $1.70000 $0.27300 8.3% $1.42700 91.7%
                 
2005                
9-Nov-05 17-Nov-05 21-Nov-05 5-Dec-05 $0.23000 $0.23000 100.0% $0.00000 0.0%
Total 2005       $0.23000 $0.23000 100.0% $0.00000 0.0%

 

NYSE: SSWPRC

Description: 9.50% Cumulative Redeemable Perpetual Series C Preferred Shares, liquidation preference $25.00 per share ("Series C Preferred Shares")

Dividends on our Series C Preferred Shares are cumulative from the date of original issue and will be payable quarterly in arrears on the 30th day of January, April, July and October of each year, commencing April 30, 2011, when, as and if declared by our board of directors. Dividends will be payable out of amounts legally available therefore at an initial rate equal to 9.50% per annum of the stated liquidation preference, subject to adjustment as described in the prospectus supplement on file with the SEC.

Announce
Date		 Ex-Dividend
Date		 Record
Date		 Pay
Date		 Total Distribution (per share) Tax Reporting Information
Amount of Total Distribution Treated as a Dividend (per Series C Preferred Share) % Per Series C Preferred Share Treated as a Dividend Amount of Total Distribution Treated other than as a Dividend (per Series C Preferred Share) % Per Series C Preferred Share Treated other than as a Dividend
                 
2013                
15-Jan-13 25-Jan-13 29-Jan-13 30-Jan-13 $0.59375        
16-Apr-13 25-Apr-13 29-Apr-13 30-Apr-13 $0.59375        
                 
2012                
17-Jan-12 25-Jan-12 27-Jan-12 30-Jan-12 $0.59375 $0.13751 23.16% $0.45624 76.84%
17-Apr-12 25-Apr-12 27-Apr-12 30-Apr-12 $0.59375 $0.13751 23.16% $0.45624 76.84%
17-Jul-12 25-Jul-12 27-Jul-12 30-Jul-12 $0.59375 $0.13751 23.16% $0.45624 76.84%
18-Oct-12 25-Oct-12 29-Oct-12 30-Oct-12 $0.59375 $0.13751 23.16% $0.45624 76.84%
Total 2012       $2.37500 $0.55004 23.16% $1.82496 76.84%
                 
2011                
20-Apr-11 27-Apr-11 29-Apr-11 2-May-11 $0.60694 $0.56021 92.3% $0.04673 7.7%
19-Jul-11 27-Jul-11 29-Jul-11 1-Aug-11 $0.60035 $0.55412 92.3% $0.04623 7.7%
17-Oct-11 26-Oct-11 28-Oct-11 31-Oct-11 $0.59375 $0.54803 92.3% $0.04572 7.7%
Total 2011       $1.80104 $1.66236 92.3% $0.13868 7.7%

 

NYSE: SSWPRD

Description: 7.95% Cumulative Redeemable Perpetual Series D Preferred Shares, liquidation preference $25.00 per share ("Series D Preferred Shares")

Dividends on our Series D Preferred Shares are cumulative from the date of original issue and will be payable quarterly in arrears on the 30th day of January, April, July and October of each year, commencing January 30, 2013, when, as and if declared by our board of directors. Dividends will be payable out of amounts legally available therefore at an initial rate equal to 7.95% per annum of the stated liquidation preference, subject to adjustment as described in the prospectus supplement on file with the SEC.

Announce
Date		 Ex-Dividend
Date		 Record
Date		 Pay
Date		 Total Distribution (per share) Tax Reporting Information
Amount of Total Distribution Treated as a Dividend (per Series C Preferred Share) % Per Series C Preferred Share Treated as a Dividend Amount of Total Distribution Treated other than as a Dividend (per Series C Preferred Share) % Per Series C Preferred Share Treated other than as a Dividend
                 
2013                
15-Jan-13 25-Jan-13 29-Jan-13 30-Jan-13 $0.259480        
16-Apr-13 25-Apr-13 29-Apr-13 30-Apr-13 $0.496875        

 

The tables above provide a breakdown by quarter of Seaspan Corporation's cash distribution (the Distribution) paid per common share, per Series C Preferred Share and per Series D Preferred Share (collectively referred to herein as the Seaspan Shares). Please note that the amount of the total distribution that is treated as a dividend versus treated other than as a dividend is not determined for U.S. tax purposes until the end of the fiscal year. If you are a U.S. shareholder and you received an IRS form 1099 that does not set forth the amount of distributions treated as dividends or as other than dividends, you should contact your broker or your tax advisor.

U.S. Shareholders

The comment below provides a summary of the principal United States federal income tax consequences of the Distribution.

You are directed to consult your own tax advisor regarding the particular federal, foreign, state and local tax consequences of the Distribution.

Treatment of the Distribution in General

For U.S. federal income tax purposes, every distribution made by a corporation is made out of earnings and profits to the extent thereof and from the most recently accumulated earnings and profits. Distributions received by the holders of the Seaspan Shares should be first treated as taxable dividend to the extent of Seaspan's current and accumulated earnings and profits that are allocated to such shares. To the extent the Distribution exceeds Seaspan's current and accumulated earnings and profits that are allocated to the Seaspan Shares, but does not exceed the shareholders' tax basis in such Seaspan Shares, it should be treated as a non-taxable return of capital. To the extent the Distribution exceeds the shareholders' tax basis in the Seaspan Shares, it should generally be treated as capital gain.

The Distribution to U.S. Shareholders

If a shareholder is a U.S. citizen or resident, an U.S. estate, or a U.S. trust (collectively referred to as a “U.S. Individual Shareholder”), that part of the Distribution treated as dividends may be taxable as “qualified dividend income” subject to a maximum of 15% tax rate, if the following conditions are satisfied:

(1) The Seaspan Shares are readily tradable on an established securities market in the United States (such as the New York Stock Exchange on which such shares are traded);

(2) Seaspan is not a passive foreign investment company (PFIC) for the taxable year during which the dividend is paid or the immediately preceding taxable year. A PFIC, in general, is a corporation that earns more than 75% of income from passive source or at least 50% of the assets are used to earn passive income. We do not believe that Seaspan is, has been, or will be a PFIC;

(3) The shareholder holds the Seaspan Shares for more than 60 days during the 121-day period beginning 60 days before the date following the record date on which Seaspan finalizes the list of shareholders who will receive the dividend; and

(4) The U.S. Individual Shareholder is not under an obligation to make related payments with respect to positions in substantially similar or related property.

On the other hand, if the above listed conditions are not satisfied or if the U.S. shareholder is a U.S. corporation, then that part of the Distribution characterized as dividends should be treated as ordinary income taxable at the regular graduated federal income tax rate up to 35%.

In the absence of legislation extending the term of the preferential tax rates for qualified dividend income, all dividends received by a taxpayer in tax years beginning on or after January 1, 2013 will be taxed at rates applicable to ordinary income.

U.S. Individual Shareholder Example:

For this simplified example, assume a U.S. Individual Shareholder (i) purchased one common share of Seaspan Corporation for $21.00 at the time of Seaspan Corporation’s initial public offering, (ii) held that common share as a capital asset (meaning generally, that the share was held for investment purposes) through the date of the distribution on November 10, 2006, and (iii) was not under an obligation to make related payments with respect to positions in substantially similar or related property.

In 2006, the U.S. Individual Shareholder received a total of $1.70 in distributions from Seaspan Corporation, of which $0.27 is treated as a dividend, and the remaining $1.43 is not treated as a dividend. Based on the U.S. Individual Shareholder’s circumstances, the amount of the distribution treated as a dividend may be eligible to be taxed as “qualified dividend income,” and would generally be subject to a maximum tax rate of 15% for net capital gains if all conditions outlined above are met. The shareholder would receive the remaining $1.43 as a non-taxable return of capital because the amounts received to date by the shareholder have not exhausted his tax basis of $21.00 in his common share.

U.S. Internal Revenue Code Section 6045B Reporting

Effective January 1, 2011, issuers of corporate stock must begin reporting corporate actions that affect the stock basis, including but not limited to mergers, stock splits, stock dividends, recapitalizations and distributions in excess of cumulative earnings and profits. The following information is intended to meet the requirements of public disclosure pursuant to Treasury Regulation Section 1.6045B-1(a)(3) and (b)(4) for Seaspan Corporation.

2013

Class A Common Shares
Series C Preferred Shares
Series D Preferred Shares
Other Transactions

2012

Class A Common Shares
Series C Preferred Shares
Other Transactions

2011

Class A Common Shares
Series C Preferred Shares

 

Canadian Shareholders
The foregoing chart and information applies only to U.S. resident recipients. Canadian resident shareholders will be required to include the full amount of the Distribution into taxable income for Canadian tax purposes. As Seaspan Corporation is not a resident of Canada, the dividend tax credit will not be available in respect of these dividends. These comments are for general purposes only. Canadian shareholders should contact their own tax advisors to determine their specific Canadian tax consequences.

Non-U.S. Shareholders
Non-U.S. shareholders should contact their own tax advisors to determine the appropriate tax treatment with respect to the distributions they receive.

Disclaimer
This chart and related comments are intended as general information only. This information was not written or intended to be used, and it cannot be used, by any person as a basis for avoiding federal tax penalties that may be imposed on that person. Shareholders should consult their own tax advisors with respect to the specific tax consequences to them. Seaspan Corporation makes no warranty either expressed or implied regarding any tax issues of its shareholders. The above information has been provided by the Seaspan Corporation to its transfer agent.

THIS SUMMARY IS BASED ON THE TAX LAWS OF THE UNITED STATES, INCLUDING THE CODE, TREASURY REGULATIONS (FINAL, TEMPORARY AND PROPOSED), ADMINISTRATIVE RULINGS AND PRACTICE, AND JUDICIAL DECISIONS IN EFFECT AND THE TAX LAWS OF CANADA (INCLUDING THE INCOME TAX ACT (CANADA), THE REGULATIONS THEREUNDER, ADMINISTRATIVE RULINGS AND PRACTICE AND JUDICIAL DECISIONS IN EFFECT) AS OF THE DATE OF THIS INFORMATION STATEMENT, ALL OF WHICH ARE SUBJECT TO CHANGE, POSSIBLY WITH RETROACTIVE EFFECT. SHAREHOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE PARTICULAR TAX CONSEQUENCES OF THE DISTRIBUTION, INCLUDING, BUT NOT LIMITED TO, THE APPLICATION AND EFFECT OF ANY STATE, LOCAL FOREIGN AND OTHER TAX LAWS, AS WELL AS THE CONSEQUENCES OF ANY RECENT, PENDING OR PROPOSED CHANGES IN THE APPLICABLE LAWS.

Updated 2012-02-03 11:00