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Before the Millennium and PowerPoint, we took a business strategy course which required us to analyze case studies. There was a strict and simple caveat. Our papers could not exceed one page in length as this was the amount of time, according to our professor, that senior management was prepared to spend on the problem. Company: Odfjell SE

Earlier this month, Diana Shipping Inc. announced the financing of the DSI Drammen, a 63,500-DWT Ultramax bulk carrier built at Imabari in 2016, through a Norwegian limited partnership, which acquired a 75% partnership interest, while Diana retained a 25 percent. Companies: Diana Shipping Inc.

Last week, Teekay Tankers Ltd. revealed an updated capital allocation plan and investors hit a trifecta with the company announcing a fixed quarterly dividend, a special dividend, and the establishment of a share repurchase program. Companies: Teekay Tankers Ltd.

In its Q1 2023 earnings report, GasLog Partners disclosed the sale and lease-back of the GasLog Sydney, a 155,000 cbm TFDE LNG carrier, built in Korea in 2013. The vessel was sold and leased back under a bareboat charter with CDBL for a period of five years with no repurchase option or obligation, at a price of $140.0 million. Companies: GasLog Partners,

It is not a great time to borrow. Up from near zero, interest rates are now above 5%, the highest since 2007. Fears abound. The issue of bank failures remains on the front burner with the latest increase likely to result in more mark-to-market losses putting more banks at risk. Meanwhile, a potential recession looms while the price of oil drops to near a yearly low. It takes courage to be a banker and a wise borrower to say no.
Companies: Seacor Marine Holdings Inc., Seacor Marine Foreign Holdings Inc.,

Last week, Eagle Bulk Shipping Inc. announced that it has entered into an Amended and Restated Credit Agreement which provides for an increased borrowing capacity of $175 million, a reduction in margin, and an extension in maturity by two years. Company: Eagle Bulk Shipping Inc.

Continuing its strategy of pursuing attractive refinancing opportunities, Seanergy Maritime Holdings Corp. recently returned from Japan having successfully executed two sale-and-leaseback agreements with unaffiliated Japanese third parties for the refinancing of the existing indebtedness covering the 2010-built Capesize bulk carriers, M/V Knightship and M/V Lordship. Companies: Seanergy Maritime Holdings Corp., Fearnley Securities

Last week, Wilh. Wilhelmsen Holding ASA launched a tender offer to acquire up to 300,000 A-shares and up to 100,000 B-shares, representing 0.9% of outstanding shares in the company. Companies: Wilh. Wilhelmsen Holding ASA, DNB Markets

Although acknowledging some degree of laziness, we, in fact, do believe that Clarksons Securities’ Frode Mørkedal best lays out the scope and the success of Scorpio Tankers’ debt management process. “Scorpio Tankers prioritizes deleveraging and refinancing. Companies: Scorpio Tankers,

Infinity Maritime is the first platform of its kind to provide alternative maritime finance through digitization, enabling fractional ownership of all types of commercial ships. The commitment is to digitize equity in the ship by creating asset-backed MetaUnits for the ships it purchases and operates that will be tradeable, resulting in a secondary market for investors.
Companies: Infinity Maritime, 5 Ocean Shipping Management

SFL Corporation took care of business this past quarter with the company securing new financings totaling in excess of $1 billion so far in 2023. With the latest facilities concluded, the company’s newbuild and capital expenditure program is fully financed, and most of its financings with near-term maturities were replaced with new long-term loans. Company: SFL Corporation

DHT Holdings entered into a $405 million secured credit facility, including a $100 million uncommitted incremental facility, The new facility bears interest at a rate equal to SOFR plus a margin of 1.90% which compares to a LIBOR equivalent margin of 164 basis points, and represents a reduction in the company’s borrowing cost. Companies: DHT Holdings, ING, Nordea, ABN AMRO, Crédit Agricole, Danish Ship Finance, SEB

Last week, United Maritime Corporation announced that it had entered into a 12-month bareboat charter agreement for a 2015-built Japanese Eco Panamax dry-bulk vessel of 78,020 dwt with an unaffiliated third party in Japan. Company: United Maritime Corporation

The question facing the dry bulk market today is when the effects of the Chinese recovery will be felt. For Genco Shipping & Trading Ltd., it will not be soon enough. Companies: Genco Shipping & Trading Ltd, Clarksons Securities,

We all want to do the right thing, but sometimes it is not so simple. A few weeks ago, Wallenius Wilhelmsen reported its progress on emissions targets and performance as it related to its sustainability-linked financing framework (“the framework”) issued in 2022.
Companies: Wallenius Wilhelmsen

It’s near-death experience nearly invisible in its rear-view mirror, Danaos Corporation has, as is close to humanly possible, future proofed itself. With lessons learned and the benefits of the bull market during the pandemic, the company has substantially deleveraged, added significant liquidity and built a substantial charter backlog despite continuing geopolitical uncertainty and turmoil in the financial markets. Companies: Danaos Corporation

Balance sheets continue to evolve and improve as borrowers extract good terms from their lenders, as they take advantage of the strong market. TORM is a case in point. First, the company reduced its net LTV from 51% at the end of Q1 2022 to 26% at the end of Q1 2023. Companies: TORM

In its conservative growth strategy, Global Ship Lease focuses on transactions which offer strong economics together with predictable contracted cashflows and low residual value risk. Its latest transaction fits that bill. Companies: Global Ship Lease

There is no end to creativity in developing dividend policies. They can range from simple payments at the discretion of the board of directors, to a simple percentage of cash flow or even the more complex earlier mentioned Genco formula. Dorian LPG chooses to pay an “irregular” dividend which can be viewed as “consistent” (the preferred term) provided, of course rates remain high. Companies: International Seaways , Dorian LPG, Clarksons Securities

A strong market has its benefits, which one would be foolish not to take advantage of. A strong demand for car transportation, coming out of Covid, together with tonnage supply constraints contributed to a significant increase in the car carrier market charter rates. Companies: Gram Car Carriers ASA