Articles

Scorpio Tankers Inc. (“STNG”) is now reaping the benefits of its well-conceived business plan and operating strategy as well as a strong tanker market underpinned by a low orderbook and supply disruptions resulting from the conflict in Ukraine. It is a perfect storm which begins with the company being the world’s largest product tanker owner.

Just prior to the bondholder meeting scheduled to amend the terms of its $300 million 6.5% Sustainability-Linked Senior Unsecured Bond maturing in April 2026, Seaspan Corporation withdrew its proposal to amend the bonds terms to remove the de-listing covenant and cancelled the meeting as the holders of more than one third of the bonds found the company’s best and final offer of an upfront fee of 8.5% unattractive.

If you love numbers and charts, Campbell Houston has every conceivable kind.

One of the last steps needed to be taken to finalize the take private transaction of Atlas Corp by Poseidon Acquisition Corp. is to obtain the consent of the bondholders of the 6.5% Seaspan Corporation Sustainability-Linked Senior Unsecured Bonds due in 2026 to amend the bond terms to remove the de-listing covenant which would trigger a put option at 101 percent.

Back in October, the Chairman of Global Ship Lease, Inc. (“GSL”) issued a plea to its shareholders seeking their participation in the company’s annual general meeting, a requirement under the laws of its incorporation.

Well, that is not exactly true. However, as evidenced by Dealogic’s report, “Marine Finance Rankings Syndicated Loans – Full Year 2022,” a pattern of declining demand for marine finance continued throughout the year.

To say United Maritime Corporation is opportunistic would be an understatement. The company went public in July when it also announced the acquisition of two Aframax tankers and two LR2s, with the former delivering in August and the latter in October.

From the Deal Tables….

Last week, d’Amico International Shipping S.A. announced that it exercised its purchase option under the existing bareboat charter with a Japanese counterparty for the MT High Voyager for consideration of $20.8 million. The High Voyager is a 45,999-dwt eco-design medium-range product tanker, built in November 2014 at Hyundai Mipo, South Korea.

In August 2022, Avance Gas Holding Ltd. finalized the financing of its newbuilding program. As the final piece, the company signed a $135 million sale-leaseback agreement with BoComm Leasing for the financing of newbuildings five and six, the Avance Castor and Avance Pollux, which are scheduled for delivery in Q4 2023 and Q1 2024, respectively.

The concept of optimization has become a common thread in company discussions, as management teams focus on both assets and liabilities as they seek make the best of the cards they have been dealt. Ideally, with optimization comes fortress-like balance sheets and sufficient liquidity to weather any storm while, at the same time, maintaining the capacity to return capital to shareholders.

Erland Sommerfelt Hauge explains the benefits of rising interest rates.

It was yet another year of unexpected events in the shipping and ship finance markets.

Back in October, the Office of Foreign Assets Control (“OFAC”) designated Amsterdam Trade Bank (“ATB”) as a Specially Designated National (“SDN”).

Last week, Golar LNG Limited (“Golar”) announced an offer to buy-back a portion of its $300 million 7% senior unsecured bonds maturing in October 2025.

Nordea Bank has had a US presence for more than 40 years, including its New York Branch, which primarily serves Nordic companies and select US companies with a Nordic connection as well as offers Nordic-based services in the United States.

Richard Smith explains the opportunity.

A profitable year led to more M&A, and less equity and debt financing.

Evercore’s Jon Chappell recently published a note on his most recent conversation with Gene Seroka, the Head of the Port of Los Angeles, which reported on the status of the ongoing labor negotiations at the West Coast ports, improvements in supply chain bottlenecks, and general shipper confidence.

Last week, Navigator Holdings Ltd. (“Navigator”) announced that its subsidiaries, Navigator Centauri L.L.C., Navigator Ceres L.L.C., Navigator Ceto L.L.C., Navigator Copernico L.L.C. and Navigator Umbrio L.L.C. (the “Borrowers”) entered into a six-year secured term loan and revolving credit facility, with Crédit Agricole CIB and Deutsche Bank.