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Last week, portfoliomanagement announced continued progress in their mission of winding down the old HSH portfolio, which was acquired in December 2015.

Last week, International Seaways, Inc. announced that it had entered into a new $750 million, five-year senior secured credit facility (the “Facility”), consisting of a term loan of $530 million and a revolving credit facility of $220 million. The Term Loan Facility contains an uncommitted accordion feature whereby, for a period of up to 24 months following the closing date, the loan amount may be increased up to an additional $250 million for the acquisition of additional vessels, subject to certain conditions.

Last week, Seaspan Corporation announced that as part of its portfolio financing program (“Program”) it had entered into a note purchase agreement to issue, in a private placement, $500 million of fixed-rate, sustainability-linked senior secured notes (the “Notes”).

The following are excerpts from our perusal of Q1 2022 earnings reports.
• As Always, Carefully Planned and Executed
• Global Ship Lease Allocates its Capital
• A Desirable and Logical Goal
• Flexibility Plus Strength
• GasLog’s Reported Financings
• Ever Better – New Lenders, Lower Pricing and Longer Term
• Going in the Opposite Direction

These days every self-respecting shipping CFO has reserved a stopover in Japan as he travels the globe in search of financing. Last week, International Seaways Inc. (“INSW”) reported its results for Q1 2022 and in that report the company disclosed two lease financings with Japanese counterparties.

Deciding to go their own separate ways, International Seaways Inc. (“INSW”) and Euronav NV have ended a long-standing partnership reflecting their different strategic focus.

Earlier this week, Capital Product Partners L.P. announced that it had agreed to exercise its right of first offer and acquire one 174,000 cbm latest generation X-DF LNG/C and three 13,278 TEU hybrid scrubber-fitted Tier III and Phase III, dual fuel ready eco container sister vessels from its sponsor Capital Maritime & Trading Corp. for total consideration of $597.5 million, while disposing of two older containerships for total consideration of $130.0 million.

In its Q1 earnings presentation, Avance Gas Holding Ltd unveiled its new $555 million sustainability-linked credit facility provided by a syndicate of leading Nordic and European banks. The first tranche of the new facility is intended to refinance the outstanding amount of $239 million, including interest, under the existing $515 million bank facility on nine of its on-the-water vessels.

We believe that our readers deserve fresh insights and perhaps better writing. In that vein, we found Jonathan Chappell’s recent note, characterized by important insights and brevity, to be worth sharing. We hope you enjoy it as much as we did.

There was an electrifying buzz in the 85-degree Hamburg air, as the 20th annual Marine Money convened today for the first time since February 2020.

As of the end of April, CMB is ahead having built up a larger position controlling 15.11% of Euronav’s outstanding shares/voting rights against Mr. Fredriksen’s 10.01 percent. But in the process has CMB done itself a disservice by throwing caution to the wind?

Last week, Global Ship Lease, Inc. (“GSL”) announced that its indirect wholly owned subsidiary, Knausen Holding LLC (the “Issuer”), priced an offering of $350 million of its 5.69% Senior Secured Notes due 2027 (the “Notes”) in a US private placement to a limited number of accredited investors.

Last week, Höegh LNG Holdings Ltd. entered into an agreement to acquire all of the outstanding common units of Höegh LNG Partners not already owned by it in exchange for $9.25 in cash per common unit, substantially higher than its initial offering of $4.25/unit made late last year.

Last week, Hudson Structured Capital Management Ltd. (“HSCM”), announced that it has expanded its transportation alternative investment platform through the acquisition of the key business assets of Northern Shipping Fund Management LLC (“NSF”), a leading alternative capital provider to the shipping industry.

Last week, Hafnia Limited successfully completed the private placement of 37.6 million new shares at a subscription price of NOK 25 per share, raising gross proceeds of NOK 940 million (approximately $100 million).

As war and inflation stir fear and uncertainty, investors are going risk-off dumping tech shares, despite respectable albeit lower earnings, taking a longer view amidst volatility. Shipping shares have become attractive as supply chains remain tangled. One might even say, there’s never been a better time to invest in shipping.

As part of its regular issuance activity, Hamburg Commercial Bank (“HCOB”) last week successfully placed a covered ship Pfandbrief of €500 million in the capital market. Rated “A2” by Moody’s, the ship mortgage-backed bond, which has a maturity of three years and a coupon of 1.375%, was placed predominantly in Germany (71%), Scandinavia (18%), and the UK (7%).

When it comes to financing, Dorian LPG Ltd. has demonstrated a strong preference for Japanese leasing and why not given its attractive terms, including advance rates and longer tenors, ranging from seven to ten years, and profiles.

Being a Fredriksen company has its benefits particularly when it comes to financing. This week, Golden Ocean entered into a new $275 million credit facility, including a $50 million revolving credit, to refinance 14 Capesize vessels.

As individuals, we all reach adulthood hopefully with a sense of how to manage our money. We learn to live within our limits, spend cautiously, and save for a rainy day. Corporations, on the other hand, have their own set of rules for dealing with their capital which are referred to as capital allocation.

Last week, Höegh Autoliners ASA (“HAUTO”) announced that it had obtained commitments from nine leading Nordic and European banks for a senior secured credit facility of up to $400 million, to refinance its existing senior secured bank debt which amounted to $442.6 million as of December 31, 2021.