Articles

A Last Act Under the Old Brand

Nov 18, 2021

Under its current guise, Teekay LNG Partners L.P. announced last week that it has priced NOK 1,000 million in new senior unsecured bonds that mature in November 2026 in the Norwegian bond market.

Printing Money

Nov 11, 2021

We would concede that Atlas Corporation is generally transparent although, in our view, it is less than forthcoming, when it comes to details. In its Q3 2021 earnings report, the company disclosed that it had arranged $5.3 billion or 70% of the required financing for its 70-vessel newbuilding program with a total capex of $7.6 billion and was on target to close an additional $1.6 billion by year-end.

It Isn’t Oslo but…

Oct 28, 2021

Last week, Capital Product Partners L.P. announced that its wholly owned subsidiary, CPLP Shipping Holdings PLC, successfully priced its offering of €150 million of five-year unsecured bonds in Greece. Guaranteed by CPLP, the Bonds will have a coupon of 2.65%, which was at the tight end of initial price talk, due to strong demand.

Leading Indicator

Oct 28, 2021

We are extremely grateful for Angeliki Frangou’s insight in linking the fortunes of the tanker sector during her interview with Clarksons’ Omar Nokta at our 2021 Greek Ship Finance Forum last week.

A Lender for Every Purpose

Oct 14, 2021

Ships are assets on many levels. First and foremost, they produce revenue through trading, but as a derivative of an improving market or a strategy of low gearing, they can also be a source of incremental liquidity. A CFO never has enough cards to play.

Investors Take Their Pound of Flesh

Nov 18, 2021

Investors these days are laser focused on climate change and are investing heavily in companies that support the decarbonization effort. Despite the crucial role it will play in the development of wind energy, Eneti Inc.’s story unfortunately did not resonate with investors.

It’s Complicated

Nov 4, 2021

The Norwegian bond market is renowned for its ease and simplicity of execution. A simple term sheet and an investor presentation is all that is required. To be fair, both the presentation and term sheets have evolved over time and become lengthier as transactions became more complicated requiring greater detail and disclosure of risks.

Shipping Start-Up

Oct 28, 2021

For those investors who are less than enamored with Diana Shipping’s conservative chartering strategy of fixing its vessels on medium- and/or long-term charters, the company has created an alternative by effecting the spin-off of three older dry bulk vessels into a new subsidiary, OceanPal Inc., which will deploy those vessels instead in the spot charter market to exploit today’s strong market.

Did We Say Diversify?

Oct 21, 2021

Seemingly, more important than ever, the common mantra of all CFOs these days is the need to diversify one’s funding sources. This was the impetus behind Dampskibsselskabet NORDEN A/S’ (“NORDEN”) issuance of an initial $100 million of senior unsecured bonds to institutional investors back in June with the ability to increase the amount to $150 million.

Are We the Problem?

Oct 14, 2021

The supply chain problems are well known. There is no limit to the litany of reasons behind it. These include consumer online purchasing, a lack of truck drivers, a lack of space to store containers, a shortage of containers in China, and so on.

Original title: Who Needs Chips When You Have Ships
Revised title: Patience is a Virtue

Nov 11, 2021

Last week, Gram Car Carriers ASA (“GCC”), a newly-established Norwegian company, announced its plan to issue the NOK equivalent of approximately $100 million, with an over-allotment option of 10%, in an equity private placement.

The World is Their Oyster

Nov 4, 2021

MPC Container Ships ASA (“MPCC”) is firing on all cylinders enabling it to achieve its goal of returning capital to its shareholders with the added benefit of de-risking the company. In an eventful announcement, MPCC disclosed late last month that it had entered into a series of transformational transactions which increased the company’s balance sheet flexibility.

All We Require is Control

Oct 28, 2021

On Tuesday, International Seaways, Inc. announced that it has entered into attractively structured sale-leaseback agreements with Ocean Yield ASA for the refinancing of six VLCCs in the aggregate amount of $375 million. VesselsValue appraises the vessels for $387.8 million implying very high gearing, which, in turn, reflects the vessels’ average age of 5.5 years, and the imputed value of the Tankers International Pool.

Tis the Season to Refinance

Oct 21, 2021

On October 1, 2021, Eagle Bulk Ultraco LLC, a wholly owned subsidiary of Eagle Bulk Shipping Inc. (“Eagle”), entered into a new five-year senior secured credit facility in the amount of $400.0 million, which consists of a $300 million term loan and a revolving credit facility of $100.0 million. Subject to certain conditions, Eagle Ultraco may request an increase of up to $60.0 million in the aggregate principal amount of the Term Facility Loan.

Catching the Wave

Oct 7, 2021

While container shipping has grabbed all the headlines, the dry bulk market continues to steadily outperform in the background. Being out of the spotlight, the sector affords careful investors distinct profitable opportunities as evidenced in Pareto Securities Project Financing’s latest project offering, Parbulkers II AS (“Parbulkers”).

A First

Nov 11, 2021

Last week, Klaveness Combination Carriers ASA (“KCC”) successfully completed an equity private placement with gross proceeds of NOK 213 million, to fund energy efficiency initiatives on its current fleet and for general corporate purposes.

Something to Strive For

Nov 4, 2021

Also, enjoying the blessings of a strong container market, Triton International Limited announced last month the successful strategic transition of the company’s debt capital structure to primarily unsecured debt.

Positioned for a Return to Normal

Oct 28, 2021

Earlier this month, Rederiaktiebolaget Eckerö (“Eckerö”) successfully placed its first bond, issuing EUR 62 million of five-year senior secured bonds in the Norwegian market. The notes bear interest at three-month EURIBOR + 7.00% in line with initial price talk.

The Pieces Come Together

Oct 14, 2021

Last week, Golar LNG Limited (“GLNG”) successfully placed $300 million of its senior unsecured bonds in the Nordic bond market on the back of strong interest from yield hungry investors. Maturing in October 2025, the bonds will carry a coupon of 7.00 percent.

Are the Public Markets Missing the Boat?

Oct 7, 2021

Private equity apparently sees greater opportunity in energy infrastructure than the public markets or at least is willing to pay for it. Just recently, GasLog Ltd. closed its take private transaction with the private equity firm, BlackRock Global Energy and Power Infrastructure Team.