Articles

Back in February, when we heard that a drilling startup, Eldorado Drilling AS had closed a $275 million senior secured debt facility from Beal Bank, originated by CSG Investments, for two ultra-deepwater drill ships, we were beyond impressed. Companies: Eldorado Drilling AS, Beal Bank, CSG Investments

The US, it is generally acknowledged, is near the top of the interest rate cycle. Since 2022, the US Federal Reserve (the Fed) has increased interest rates from 0.25% to 5.50%. The consensus is that the Fed will cut rates by approximately 1% in 2024.

Speaking of optimizing the capital structure, Diana Shipping (“Diana”) disclosed this week that it has entered into an agreement with Nordea Bank for a six-year secured term loan facility in the amount of $167.3 million. Companies: Diana Shipping, Nordea Bank,

NASDAQ-listed crude and product tanker owner, Top Ships, has agreed to purchase a 47-meter mega-yacht from an affiliate of the company’s CEO, Evangelos J. Pistiolis for $20 million, which includes a mix of cash and the assumption of debt. Companies: Top Ships, Goldenport, Golden Yachts

Anyone who has ever tried to raise private equity for a small shipping company in the last ten years knows this: the rewards can be tremendous, but the process is usually painful. Excruciatingly painful. In fact, simply getting investor meetings can hurt, never mind generating term sheets and negotiating them to the point where they are mutually acceptable. Companies: Maxim Group , Icon Energy ,

During a week of volatile stock movements, we thought it would be a great time to highlight a recent paper the world bank put out in July about how stress on global supply chains affects shipping markets.

Infrastructure private equity has been gaining huge amounts of traction on Wall Street. What was once seen as a relatively static and “safe” industry is gaining recognition for its potential to be part of high growth sectors such as energy, but also the ability to opportunistically invest and generate uncorrelated returns with essential assets…such as freight! Companies: Stonepeak, Blackstone , Blackrock, Global Infrastructure Partners, Oaktree, Duration Capital Partners, Fleetscape, Meerbaum, Ports America, and Rand Logistics

SFL Corporation has ended the drought! The company is issuing eight million new shares at $12.50/share. The offering is being managed by sole bookrunner Morgan Stanley, lead manager BTIG, and co-managers Arctic Securities, DNB Markets, Fearnley Securities, and Pareto Securities. Companies: SFL Corporation, Morgan Stanley, BTIG, rctic Securities, DNB Markets, Fearnley Securities, and Pareto Securities

A six-year joint venture between a subsidiary of Trafigura, Puma Energy Supply (“Puma”), and Gearbulk is coming to an end with the sale of Gearbulk’s stake in the company to Puma. Companies: Trafigura, Puma Energy Supply (“Puma”), Gearbulk, High Heat Tankers, Mitsui O.S.K. Lines, Greig Maritime, G2 Ocean

Ismini Panayotides-controlled Icon Energy (“Icon”) completed a one ship IPO on NASDAQ last week. The transaction marks the first time that fresh capital has been raised for an IPO of just one vessel. To be clear, this transaction is not a “drop down” or a “spin-off.” Companies: Icon Energy , NASDAQ, Maxim Group, United Maritime

J.P. Morgan’s purchase of Bold Ocean last week marks the continuation of a trend that we think will have a significant impact on the U.S. Flag market: the growing role of institutional investors with seemingly unlimited liquidity, a relatively low cost of capital, and a desire to grow. Companies: J.P. Morgan, Bold Ocean, Carlyle Group, Horizon Lines, Castle Harlan, New Mountain Capital, U.S. Ocean, American Industrial, MMI,

The M&A action keeps rolling! Just last week, Cyan Renewables (“Cyan”), a Singaporean operator of offshore wind support vessels, backed by infrastructure investing fund and portco owner, Seraya Partners (“Seraya”), announced its acquisition of Australian owner/operator of OSVs, MMA Offshore (“MMA”). Companies: Cyan Renewables, Seraya Partners, MMA Offshore, Alberta Investment Management, Eneti, Allens LLP

The much-touted idea of using “shares as currency” to buy ships is easier said than done. When the shares are significantly below Net Asset Value (NAV), companies don’t want to issue new shares because it would dilute existing investors. Companies: Torm, Hayfin, Sinokor, Evercore ISI

Commercial banks are lending less, and private credit funds are lending more. Therefore, it is not surprising that the biggest players on Wall Street are now moving aggressively into the private credit market and existing players are consolidating to scale-up. One of the leaders in private credit is Blue Owl. Companies: Blue Owl, Atalaya Capital, DNB Markets, Ridgebury Tankers

Let the good times roll! After an exciting offshore discussion on the opening day of Marine Money Week, full of positive sentiment and excitement for the industry, the deals just keep coming. Companies: DOF Group ASA , Maersk Supply Service A/S, A.P. Moller Holdings

Capital allocation is a “Champagne Problem,” as Taylor Swift might sing if she were a shipowner. The vexing issue of what to do with piles of free cash comes up more frequently now that shipowners actually have capital to allocate. Company: Klaveness Combination Carriers

HIGHER DISCOUNTS ON SHIPPING STOCKS and SHIPPING STOCKS WEAKER

What do you do when your company achieves the highest profit in its 150+-year-long history? Get stronger! That is why when tanker and bulker owner/operator Norden recorded $744 million in profits for 2022, the company became an acquirer for the first time in May 2023 when it bought Thorco Projects for $57 million. Companies: Norden, Thorco Projects, New Mountain Capital, Intermarine , Scan-Trans, Norlat

The hunt for ship mortgages is ON! As we discussed last week, Hamburg Commercial Bank’s acquisition of NIBC’s shipping loan portfolio and XYZ’s acquisition of Danish Ship Finance are proof that shipping loans are in demand – by lenders! Companies: Hamburg Commercial Bank, NIBC, Magellan Group, Danish Ship Finance, Gunvor Group, ABN AMRO , Tsakos Energy Navigation, ING, Watson Farley & Williams

This week’s issue seems to be all about acquisitions, which have made their way into the shipping finance space as of recent as we discussed in our June 20th issue, “The M&A Hurricane Pulls-In Maritime Service Companies” with the acquisition of Danish Ship Finance by Magellan Group. Companies: Danish Ship Finance, Magellan Group, Hamburg Commercial Bank, NIBC