The pandemic has created challenges for all with Ocean Yield ASA being no exception. The company has been in a quiet period with the last transaction executed being the acquisition of two Suezmax tankers back in October 2020.

There are many ways to manage one's balance sheet a process which is limited only by one's creativity. A year ago, as a pre-emptive measure to strengthen its equity ratio in light of the Covid-19 pandemic, Ocean Yield formed a joint venture with Aker Capital, whereby the latter would acquire from Ocean Yield 50% of seven tankers with long-term charters.

Leonhardt & Blumberg ("L&B") has a nice little business. In fact, it is today, among the largest independent charter owners of Handysize containerships, controlling a fleet of 36 vessels as well as being the operator of the C17 -1700 TEU Feeder Pool, which consists of 20 plus x 1,700 TEU Feeder containerships.

While ideals are important, one is still running a business and must make decisions accordingly. Earlier this month, BW Offshore announced that it had decided to not proceed with the issue of a NOK-denominated senior unsecured green bond as the company considers the terms offered as unsatisfactory in the current market.

Back in June, MPC Container Ships ASA ("MPCC") agreed to acquire, through a share purchase agreement, Songa Container AS ("Songa") for a purchase price of $210.25 million, which is to be settled through cash consideration of $115 million with the balance paid in the form of approximately 48-50 million shares of MPCC at a price of NOK 17.34 (closing price on May 31 when the main terms were agreed).

Prexit continues apace.

With a strong balance sheet in place and an ever-improving dry bulk market providing a fair wind, Diana Shipping Inc. seized the opportunity to refinance its maturing bonds, allowing it to take down the credit pricing and extend debt maturities in line with its prudent capital management policy.

The analogy of a perfect storm could not be more appropriate. The dry bulk market, particularly for small vessels, is booming as the world economy recovers from the pandemic, the hunt for yield continues and the supply of ships remains at historical lows.

Last week, Dampskibsselskabet NORDEN AS successfully placed $100 million in three-year senior unsecured bonds at par paying a coupon of LIBOR + 4.75% per annum.Proceeds of the issue will be used for general corporate purposes including diversifying long-term funding and increasing working capital to grow the business and execute on attractive market opportunities.

Last week, Hapag-Lloyd doubled down, ordering an additional six ultra-large 23,500 TEU containerships bringing its total order book to 12 vessels. The beneficiary of the order was the South Korean shipyard Daewoo Shipbuilding & Marine Engineering, which was already commissioned to build the initial six vessels which were ordered last December.

It's human nature to chase rising markets and the container market these days is particularly tantalizing as it seems to set records daily. The lesson of buying low and selling high is easily forgotten in frothy markets. We all know it will end and thus the need to prepare for a soft-landing.

Back in January 2020, Höegh LNG Holdings Ltd. ("Höegh LNG") successfully completed a new five-year senior unsecured bond issue of NOK 650 million with a borrowing limit of NOK 1.3 billion. Significantly oversubscribed, the bond carried a coupon of three-months NIBOR + 600 bps. Proceeds were used to refinance existing debt and for general corporate purposes.