Articles

Earlier this month, Gram Car Carriers ASA (“GCC”) acquired a 20% equity ownership in Gram Car AS (“Gram Car”), a single-purpose company owning the Mediterranean Sea, a 4,900-CEU Pure Car Truck Carrier (“PCTC”), built at Xiamen Shipbuilding in 2010, for total consideration of $4.75 million. Companies: Gram Car Carriers ASA, Gram Car AS, NRP Project Finance

Earlier this month, Seanergy Maritime Holdings Corp. announced that it had entered into a 12-month bareboat charter agreement with an unaffiliated third party in Japan for a 2011-built Newcastlemax dry bulk carrier of 207,855 dwt built at Nantong COSCO KHI Ship Engineering. Company: Seanergy Maritime Holdings Corp.

Also, at the end of last month, Diana Shipping Inc. announced that it had drawn $100 million under a new term loan facility with DNB maturing up to December 2029, subject to mutually agreed margin reset at the end of the fourth year. Companies: Diana Shipping Inc., DNB, Nordea

We certainly did not have long to wait for Eagle Bulk Shipping’s response to John Coustas’ open letter to the shareholders of Eagle Bulk. Companies: Eagle Bulk Shipping, Danaos, Oaktree Capital

Last week, BW LPG Limited launched a tender offer to buy back the equivalent of $25–50 million (the “Offering”) of its own shares through a reverse bookbuilding process in which shareholders could submit sales offers. Companies: BW LPG Limited, DNB Markets

Recently, First Citizens Bank (“FCB”) acquired a $123 million portfolio of 11 shipping loans formerly held by HSBC Bank PLC (“HSBC”), a longstanding leader to the Greek maritime community. Companies: First Citizens Bank, HSBC Bank PLC

For those readers who were unable to attend Marine Money Week or have not yet been informed of a must-see highlight, we encourage you to take the time to view the interview of George Logothetis of Libra Group conducted by Jefferies’ Doug Mavrinac.

Klaveness Combination Carriers ASA (“KCC”) signed its first sustainability-linked bank loan in mid-2020, making it the first sustainability-linked bank debt facility in Norwegian shipping. Committed to doing its part to avert climate change, the company continues to use this financing structure. Company: Klaveness Combination Carriers ASA (“KCC”), DNB, Skandinaviska Enskilda Banken, Sparebank 1 SR-Bank, Sparebanken Vest

As a counterpoint, Danaos Corporation, on Monday, threw down the gauntlet issuing an open letter to Eagle Bulk Shipping’s Board of Directors questioning the latter’s recent decision to repurchase Oaktree Capital’s (“Oaktree”) entire 28% stake in the Eagle Bulk at nearly a 35% premium to the company’s 45-day average share price and its decision to adopt a poison pill without seeking prior shareholder approval, which precludes Danaos from acquiring any additional shares. Companies: Danaos Corporation, Eagle Bulk Shipping, Oaktree Capital

We are big fans of Constantin Baack’s characterization of his management of MPC Container Ships (“MPCC”) as portfolio optimization. Like a chess grandmaster, each of his moves, whether changing the fleet mix or financing, is strategic and has an overall positive impact on both operations and the balance sheet. Companies: MPC Container Ships, Lomar Shipping,

What do Euronav, International Seaways, and Eagle Bulk all have in common? They are all under attack by unwanted suitors. If there is a downside to being a public company, this is it. Shares are accumulated by a third party who purports, sometimes correctly, that things can be better and demands changes. Companies: Euronav, International Seaways, Eagle Bulk, Castor Maritime, Performance Shipping, Top Ships

Undoubtedly, Scorpio Tankers Inc. has used its cash judiciously in both returning capital to its shareholders and, more importantly from our perspective, in improving its balance sheet through deleveraging and optimization. Company: Scorpio Tankers Inc., DekaBank Deutsche Girozentrale

Late last month, Tidewater Inc. successfully placed its offering of $250 million of senior unsecured bonds in the Nordic bond market. Companies: Tidewater Inc, Solstad Offshore ASA

Last week, Cadeler A/S and Eneti Inc. announced that they have entered into a business combination agreement through a stock-for-stock exchange offer to be made to all stockholders of Eneti. Companies: Cadeler A/S, Eneti Inc., DNB Markets, Perella Weinberg Partners

Last Friday, Danaos Corporation disclosed that it had purchased 1,370,836 shares representing 9.99% of the shares outstanding of Eagle Bulk Shipping. Companies: Danaos Corporation, Eagle Bulk Shipping, Costamare Inc.

Last week, Dorian LPG Ltd. announced that it took delivery of the 2023-built dual-fuel 86,000 cbm LPG carrier Cristobal, which is the third dual-fuel LPG carrier to join the Dorian LPG fleet on a long-term time charter. Company: Dorian LPG Ltd.

Last week, Okeanis Eco Tankers Corp. (“OET”) announced the closing of a new $113 million senior secured credit facility, provided by ABN AMRO, to refinance existing indebtedness at significantly improved terms, in line with the Company’s strategy towards capital structure optimization. Companies: Okeanis Eco Tankers Corp. (“OET”), ABN AMRO

Last week’s actions and reactions taken by Eagle Bulk Shipping and Danaos Corporation made for fertile material for discussion, raising questions of strategy, capital allocation and a company’s duty of care to its shareholders. Companies: Eagle Bulk Shipping, Danaos Corporation, Pareto

Nearly ten years had passed and for Oaktree Capital Management it was time for an exit from its shareholding in Eagle Bulk Shipping, which had been acquired in a debt-for-equity swap through the bankruptcy process. Companies: Oaktree Capital Management, Eagle Bulk Shipping, Danaos Corporation

We have ridden this hobby horse before and perhaps, one might say, too often. Still the concept nags at us. But having just finished reading “Power Failure: The Rise and Fall of an American Icon” by William Cohan, we were again reminded of the risks of buying back shares. Needing to dismantle GE Capital as a consequence of the financial crisis, GE’s management used the proceeds from the sale of portions of that business to buy back shares leaving it riddled with debt and lacking sufficient liquidity. Companies: Gram Car Carriers, Fearnley Securities