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The Sustainability-Linked Deal of the Year - East: Standard Chartered, MUFG Bank, DBS Bank, Sumitomo Mitsui Banking Corporation, Korea Development Bank, Malaysia EXIM

Crossing the Atlantic last week, Himalaya Shipping Ltd. (“Himalaya Shipping”), announced the pricing of its previously announced initial public offering in New York of 7,720,000 of its common shares at a price to the public of $5.80 per common share raising gross proceeds of $44,776,000. In addition, the company has granted the underwriters a 30-day option to purchase up to an additional 1,158,000 common shares at the offering price, less underwriting discounts and commissions.

Why own when you can lease? Taking a page from the airline industry, Dorian LPG Ltd., over the last two months, has added substantial cargo capacity through the long-term time charter-in of two newbuilding VLGCs and the acquisition of a third, which is financed through a Japanese lease.

Scorpio Tankers Inc. last week announced that it has exercised the purchase options on six ships including two 2016-built LR2 product tankers (STI Grace and STI Jermyn), one 2019-built LR2 product tanker (STI Lavender), two 2019-built MR product tankers (STI Magnetic and STI Marshall), and one 2020-built MR product tanker (STI Miracle).

Last week, Ocean Yield AS successfully completed a new four-year NOK 750 million senior unsecured bond issue, which represents the initial issue amount drawn from a borrowing limit of NOK 1,500 million.

The Wild Card Deal of the Year: Maersk Tankers, Citi Bank

Earlier this month, Excelerate Energy, Inc. announced that it had entered into an Amended and Restated $600 Million Senior Secured Credit Facility (the “Credit Agreement”) which extended the existing $350 million Revolving Credit Facility and added a new $250 million Term Loan Facility. Both facilities will mature in March 2027.

Earlier this month, we reviewed Partankers XXII AS, a Pareto Securities’ organized project involving the acquisition of two 2007/2008-built Panamax/LR1 tankers which was concluded at the end of last year.

Up until recently, one would have thought it would be less risky to be a banker than a shipowner. After all, provided the bankers make the correct credit decision, all that is necessary is to sit back and collect interest and principal.

Back in May of last year, International Seaways Inc. refinanced three existing credit facilities into a new senior secured credit facility of $750 million, composed of a $530 million term loan and a revolving credit facility of $220 million.

Last week, GasLog Ltd. (“GasLog”) and GasLog Partners LP (“GasLog Partners”), announced that they have entered into a definitive merger agreement under which GasLog will acquire all the outstanding common units of the Partnership it does not own (69.8% of the outstanding Units).

With the signing of the $290 million loan agreement for the refinancing of Flex Freedom and Flex Vigilant, Flex LNG Ltd.’s ~$2 billion Balance Sheet Optimization Program was concluded on time and according to plan despite the recent turmoil in the financial markets.

Last week, Navigator Holdings (“Navigator”) pushed us closer to gender equality. The company announced that it had recently concluded a $200 million senior term loan facility for the financing of ten vessels.

Last Thursday, TORM announced that it had entered into two transactions, the first an acquisition, with a financing twist, and the second a refinancing coupled with a new commitment.

A few weeks ago, Genco Shipping & Trading Limited reported its financial results for the three months and twelve months ended December 31, 2022 and in that report there was a review of the company’s comprehensive value strategy.

On Tuesday, Scorpio Tankers announced that it had given notice to the vessels’ owners of its intention to exercise the purchase on one 2019-built LR2 product tanker (STI Lobelia) and five 2019-built MR product tankers (STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister).

The tanker market has never been stronger, and its participants are generating record revenues, cash flows and profits. If ever one were to call a market top, this may be the moment, making it an opportune time for a private equity exit. Not only would the seller profit, but the sale of a substantial stake would also improve the company’s share liquidity.

Last week, Heidmar Inc. announced it entered into a definitive agreement for a business combination with Home Plate Acquisition Corporation, a publicly listed, special purpose acquisition company (SPAC). The transaction values the combined company at a pro forma implied equity value of approximately $261.4 million.

Earlier this month, DFDS successfully priced, at par, two tranches of senior unsecured bonds totaling NOK 1,500 million in total. Making the process easier, DFDS had earlier obtained an issuer and senior unsecured debt rating of BBB- (stable) from Scope.

In its Q4 2022 earnings release, Star Bulk Carriers Corp. reported on the state of its balance sheet. During 2022 and January 2023, Star Bulk completed $430.0 million of new refinancings resulting in the extension of the average maturity of its outstanding debt from 3.6 to 4.3 years, interest savings of approximately $5.2 million annually from more competitive margins while leaving it with 13 unencumbered vessels.