Articles

The trend toward privatization continues as private equity infrastructure funds see opportunity in shipping. Their apparent unlimited access to capital is most welcome but the questions of cost and investment horizon linger. Permanent capital it is not, long-term perhaps.

There were two recent transactions that struck us as somewhat unusual. In the first, KNOT Offshore Partners LP announced that it had entered into an at-the-market issuance sales agreement with B. Riley Securities under which the company could sell common units from time to time having an aggregate price of up to $100 million.

Last week, Global Ship Lease, Inc. (“GSL”) announced today that “S&P Global Ratings (“S&P”) has raised the company’s long-term issuer credit rating to BB- from B+, with a stable outlook, attributing the upgrade to a number of factors including the company’s larger scale, increased diversification, enhanced contract coverage, expectation that favorable charter rate conditions will continue, and forecast of solid EBITDA performance and positive free cash flow generation.

As of June 30, 2021, Genco Shipping & Trading Limited had two outstanding debt facilities, a $495 million credit facility with Nordea of which $276.4 million was outstanding and a $133 million credit facility with Crédit Agricole with $90.6 million outstanding.

With a booming container market that appears to have legs and cash pouring into its coffers, Costamare Inc. disclosed back in June that it had taken a different tack choosing to invest in the dry bulk sector, “…a liquid sector with strong fundamentals that provide enhanced return opportunities for our shareholders.”

In support of Marine Money Virtual Climate Week Forum and UN Climate Week, Marine Money brings you Green & Sustainability-linked Financing for Shipping: Understanding the Requirements, Benefits and Costs of Responsible Finance. From second party opinions to Key Performance Indicators, this report helps borrowers understand the key considerations of this fast-growing market for capital.

Private Credit is reshaping the ship finance landscape. In this paper, Matt McCleery highlights the opportunities (and challenges) for borrowers, lenders and Limited Partners.

This week, Odfjell Gas Shipowning AS, a 100%-owned subsidiary of Odfjell SE, agreed to sell its two LPG/Ethylene carriers, Bow Guardian and Bow Gallant, both built in Korea in 2008 to BW Epic Kosan Ltd. (“BWEK”).

On the heels of our reporting Dealogic’s Q1 Marine Finance Rankings two weeks ago, we now bring you current with the results for H1 2021. Not much has changed with overall volumes remaining significantly under pressure and substantially below the prior comparable periods.

Last week, NYK Line issued its 43rd and 44th unsecured corporate bonds (transition bonds) within the Japanese domestic market, becoming Japan’s first company to issue such bonds. Moreover, the issuance was selected as the first model case for transition finance by Japan’s Ministry of Economy, Trade and Industry.

Last week, Euronav Luxembourg S.A., a wholly owned subsidiary of Euronav NV announced it had successfully placed $200 million of its senior unsecured bonds.M

Last year’s Marine Money Deal of the Year winner, Wallenius Wilhelmsen ASA (“WalWil”), returned last week to the Norwegian bond market where it had achieved that success. It was a far different time.

Included in its announcement of the Seajacks’ acquisition, Eneti Inc. also disclosed that the company had agreed with the counterparties in Japan to transfer the existing lease finance arrangements of the SBI Tango, SBI Echo, and SBI Hermes, Ultramax bulk carriers built in 2015, 2015, and 2016, respectively, and SBI Rumba and SBI Samba, Kamsarmax bulk carriers built in 2015, to affiliates of Scorpio Holdings Limited (“SHL”) for consideration of $16 million.

Investors in Scorpio Bulkers/Eneti are the poster children for patient investors. They watched as the company dismantled a modern eco bulker fleet, just as that market was improving, so that it could shift strategically into the business of installing wind turbines to align itself with a green renewable future.

Backed by major US- and European-based institutional investors, Direct Ship Finance (‘DSF”), a new provider of senior secured loans to ship owners, will launch its first senior secured credit fund effective September 2021.

It was back on August 23, 2005, that the shareholders of International Shipping Enterprises, Inc., a SPAC, overwhelmingly approved the acquisition of Navios Maritime Holdings Inc. which transaction closed two days later.

Earlier this month, Textainer Group Holdings Limited priced its public offering of 6,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.250% Series B Cumulative Redeemable Perpetual Preference Shares, par value $0.01 per share and $25,000 liquidation preference per share (equivalent to $25.00 per depositary share), for a public offering price of $150,000,000.

On the heels of last week’s discussion of Eneti’s acquisition of Seajacks and its immediately improved future prospects, we take a look back at what might have been. In this instance, unlike the Shakespearean quote in the title, the future is no longer informed by the past, a reflection of the company’s rejection of dry bulk in favor of wind energy.

All in favor say aye! After being harangued by shareholders and analysts for what seems forever, Dorian LPG Ltd. announced its first ever dividend of $1.00 per share, returning in excess of $41 million to shareholders based upon the share count as of March 31, 2021.

It was back in November 2019 when Seaspan Corporation announced the implementation of a holding company structure creating Atlas Corporation, as the parent company of Seaspan, and a path to diversification.