Articles

Also, last week, MOL Chemical Tankers Pte. Ltd. (“MOLCT”) and Fairfield-Maxwell Ltd. announced that they have agreed in principle to a transaction in which MOL Chemical would acquire the business of Fairfield Chemical Carriers (“FCC”) in an all-cash transaction for approximately $400 million. Companies: , MOL Chemical Tankers Pte. Ltd. (“MOLCT”), Fairfield-Maxwell Ltd., Fairfield Chemical Carriers

It was merely five years ago that the Chinese lessors stepped up opportunistically to fill the lending gap created by Western banks’ conscious decision to reduce their shipping exposures. Their timing was impeccable and shipowners’ appetite for sale-leaseback transactions seemed nearly insatiable. Companies: Crédit Agricole CIB, BNP Paribas

The Jones Act is a world unto itself. Little is known or fully understood outside of its small coterie of participants. In brief, the Jones Act requires that cargo transported between U.S. ports be shipped solely aboard vessels that are built in the U.S., owned by U.S. citizens, and crewed by American sailors. Companies: Maritime Partners LLC, American Tanker Holding Company, Inc. (“ATHC”) , AMSC ASA (“AMSC”), OSG, Keystone Shipping, Aker Capital, DNB Bank, Deutsche Bank Securities, Pareto Securities

It has been a busy 1H 2023 for SFL Corp. with the company securing new financing arrangements totaling more than $1 billion so far this year. Benefiting from the new contract on the Hercules, the company refinanced the drilling rigs, Hercules and Linus, in two separate loan facilities of $150 million per rig with maturities in the fourth quarter of 2025 and in the second quarter of 2026, respectively.

Last week, Ocean Yield AS announced that it has agreed to purchase four LR1 product tankers, to be constructed at Guangzhou Shipyard International in China with delivery in 2026 and 2027. Companies: Ocean Yield AS, Braskem S.A.

Last week, Crowley and SEACOR Holdings announced that they had agreed to form a joint venture that will integrate their liquid energy and chemical transportation vessels, operations, and related services into a new, independent U.S. Jones Act service provider, Fairwater Holdings LLC. Companies: Crowley, SEACOR Holdings, Fairwater Holdings LLC

Last week, Ocean Yield AS successfully completed a new five-year senior unsecured bond issue of NOK 750 million, which represents the initial issue amount drawn from a borrowing limit of NOK 1,500 million. Companies: Ocean Yield AS, Kohlberg Kravis Roberts & Co. L.P., Arctic Securities, Danske Bank, DNB Markets, Nordea

One cannot underestimate the value of longstanding relationships. The Navios name is well-known and respected in Japan being one of the earliest participants in Shikoku leasing. Company: Navios Maritime Partners

Our initial reaction was that Stainless Tankers (“STST”) went overboard. With the shares of the company starting to trade on April 28, 2023, Stainless Tankers’ fleet was owned for 58% of the quarter’s available days. Moreover, the seven vessels comprising the fleet were delivered to the company between April 12 and June 29 further reducing availability, although this was offset by a payment of $2.2 million of purchase price discounts.

In the event you have not noticed your Inbox filled with corporate earnings, we can confirm that the earnings season is beginning to wind down. Given our bent, we ignore the numbers in favor of the analysts and instead hone in on the balance sheets of the reporting companies. Nevertheless, keep in mind that it is a strong balance sheet which makes all things possible. Companies: International Seaways Inc., Danaos Corporation, Scorpio Tankers Inc., DekaBank, Euronav, DNB, ING, Taylor Maritime Investments

It has been a hectic period in Oslo, where shipping companies have made debt capital markets bankers earn their wages. Over a four-week period, issuance has exploded with a new bond offering weekly. Companies: Wallenius Wilhelmsen, Klaveness Combination Carriers, Ocean Yield, Bonheur, Stolt-Nielsen Limited, Stolt Tankers, Stolthaven Terminals, Stolt Tank Containers, Danske Bank, DNB Markets, Nordea, SEB

Last week, Klaveness Combination Carriers ASA (“KCC”) successfully priced a new five-year senior unsecured sustainability-linked bond issue of NOK 500 million with a borrowing limit of NOK 1,000 million. Companies: Klaveness Combination Carriers ASA, Danske Bank, Nordea, Pareto Securities, SEB

Last year, issuance in the Norwegian bond market by shipping companies was slow, particularly so in comparison to the strong year in 2021. This year may be even slower.

For Odfjell SE, strong operating cash flows are driving accelerated deleveraging in line with its financial strategy of reducing cash break-even rates and cost of capital. Nominal interest-bearing debt was $943 million at quarter end and is projected to decrease to $881 million at year-end 2023 with a further reduction to $618 million by year-end 2025.

To truly grow and compete, global companies cannot simply think locally. A case in point is Hafnia Ltd. A leading tanker owner, Hafnia was listed on the Oslo stock exchange in April 2020, the culmination of its merger with BW Group. Companies: Hafnia Ltd, BW Group, Skandinaviska Enskilda Banken

Last week, Navios Maritime Holdings Inc. (“Navios Holdings”) announced that its board of directors had received an unsolicited non-binding proposal from N Shipmanagement Acquisition Corp. (“NSC”). Companies: Navios Maritime Holdings Inc. , N Shipmanagement Acquisition Corp. N Shipmanagement Acquisition Corp.

Although now a private company, Seapeak LLC still reports its quarterly financial results publicly on the ‘down-low’ as its two perpetual preferred share issues and two NOK denominated bonds remain trading in the public markets. Company: Seapeak LLC

Last week, Globus Maritime Limited announced that it had entered into, an amended and restated a term loan facility with First Citizens Bank & Trust Company (formerly known as CIT Bank N.A.) which allowed for an additional borrowing amount of $25 million, increasing the loan facility to $77.25 million.

For the many years we have followed the industry, private equity funds have been highly active and stealthy investors in both shipping’s public and private companies as well as in steel itself.

The maritime industry continues to make progress, albeit slowly, towards achieving its decarbonization goals. This week we were fortunate to receive the following progress report from Societe Generale’s Paul Taylor and Elodie Tarby. While tweaks are being made, success is solely tied to finding the magic bullet, which, in this instance, is the most efficient and economical alternative fuel. Company: Societe Generale