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Ketch Recruiting Spots Opportunities in a Choppy Market
Eric Wiberg, most recently of RSR Partners and Directorship Search Group, has founded a new dedicated maritime recruiting firm. Connecticut-based Ketch Recruiting, aptly named after the type of sailboat in which its founder has crossed both the Atlantic and Pacific oceans, provides both contingency and retained services at the at the executive and board as well as management and even entry level. Since hiring practices are always an interesting indicator of management’s market expectations, we asked Mr. Wiberg to share some of his thoughts. He was not particularly bullish on the prospects for the recruiting market in general, but that’s good news for potential hirers because he anticipates that recruiters are going to grow more generous with their terms. As support he cites Maersk’s massive lay-offs of around 3,000 employees and at least one major bank that is presently in a hiring freeze.
Even so, companies like Norden and Erik Ostbye’s Sokana Chartering are on the upswing, while numerous financial firms are looking for secured finance professionals – in shipping, aviation and particularly in the rail segment. Meanwhile difficulties in bringing in foreign nationals have allowed Americans to make inroads at the US offices of many European firms, and Mr. Wiberg suspects the same will ultimately happen as more Chinese firms set up shop in the States, particularly if Chinese financial firms begin looking to collateralize debt with assets. He also anticipates that projects such as the Neptune LNG regassification terminal off Gloucester and the Calypso project off Florida will generate additional employment needs.
Globus Maritime Gleans UK National Accolade
While most awards tend to focus on the biggest and most influential transactions, the UK’s Quoted Company Awards pay tribute to the principle that most big things start small with their annual recognition of the achievements of companies below FTSE 350 through to AIM and PLUS. The awards this year recognized Globus Maritime as the 2007 International IPO of the Year at an annual ceremony at the Grosvenor House Hotel in London. They are organized by the Growth Company Investor magazine in association with Grant Thronton and criteria include amount of money raised, the costs of float, and timing, as well as the type of company being floated and its size and sector. They also take into account the valuation of the company at float and the performance of shares since floatation. George Karageorgiou’s Globus was admitted to the AIM market following a June 2007 private placement of 8,423,333 shares that raised approximately $50 million led by Jefferies International Limited.
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Oppenheimer Initiates on Containership Sector
Tim Tiberio and Lawrence Lee of Oppenheimer have released their first report on the containership sector, rating all three companies under coverage – Danaos, Seaspan and Euroseas – an impressive Outperform. To support this they cite several factors, including the shielding effect the leasing model provides from near-term cyclicality. While the analysts expect a moderation in global container volume growth in 2008, they expect growing consumer demand in Asia and Eastern Europe, ongoing globalization, and the continual growth of offshore manufacturing will continue to drive long-term growth in the sector.
SQN Capital to Close New $15 million Fund
SQN Capital launched a new $15 million fund last month and is preparing for its first closing. The equipment leasing fund, called SQN Alternative Investment Fund I, is currently seeking investments in the marine, energy and environmental space, while it also invests in the technology, medical and module housing sectors. As far as marine activities, SQN has a particular interest in Jones Act vessels and oil field services companies.
The firm recently closed on the sale of a vessel from Louisiana to Seattle interests for two million, but has done transactions as large as the $72 million sale of a 75% interest in a Lafayette, LA-based offshore supply vessel company. In addition to investment activities, SQN Capital Corporation is currently managing a dry bulk carrier placement, arranging equity finance for a sub-sea excavation company, and is seeking about $40 million of debt for a European ferry transaction in which the equity is already in place.
Athenian and Viking Confab
In front of a packed crowd at the New York Helmsley, the Hellenic-American and Norwegian-American Chambers of Commerce held their 14th Annual Joint Shipping Conference under the catchy title “Are the Bulls and the Bears Right?”
The day started off with derivatives, a tough topic for early in the morning. Nevertheless, the presenters pulled it off and kept everyone interested. To start off Robert Shaw of Mystras Ventures gave a great overview and primer on freight derivatives. In particular, he emphasized their importance of derivatives for hedging but noted that freight volatility and correlation with other commodities has attracted financial players into the market, a recurrent theme.
Norwegian Bond Update
Thanks to Lars Kirkeby of Nordea Markets, we have a glimpse into what the New Year might hold in store for this important segment. The year started off in reasonable fashion with the issuance of 6 new primary corporate bonds, 2 commercial paper issues and 1 tap. Total issuance year to date amounts to NOK 0.9 billion compared to NOK 8.7 billion for the same period in 2007. However to keep this data in context one must recall the steep fall-off in issuance during the second half of last year. Other trends worth noting, although clearly early in the year, include:
•High yield rating classes account for 56% of total issuance in 2008 (2007:83%). Lower activity within the high yield rating classes is anticipated.
• Covertible bonds have increased in relative size and constituted approximately 47% of total issuance in the second half of 2007. No straight high yield bonds have been placed in 2008, only convertibles. Continue Reading
Debutante
Last week D/S Norden (“Norden”) held its first Capital Markets Day in New York at the prestigious Four Seasons Hotel. The event was hosted by Mr. Ivar Hansson Myklebust, EVP and CFO, and Mr. Martin Badsted, VP & Head of Corporate Secretariat. As this was the premier event in N.Y., the crowd was relatively small but high powered and included, among others, key New York shipping analysts Natasha Boyden of Cantor, Doug Mavrinac of Jefferies, Glenn Muller from JP Morgan and Michael Webber from Wachovia. Others in the audience included investors as well as Peter Shaerf of AMA.
The company allocated three hours for the presentation and Q&A session and we are struggling how to distill the in-depth presentation and do it justice. Objectivity is also an issue as we are ardent admirers of the company’s rather unique market approach and strategy. With that said, here are our key takeaways and our favorite slides from their presentation.
Market Commentary
The confluence of a credit squeeze, fallen charter rates and ailing equity markets appears to have set off a wave of consolidation. While many have been enjoying the good times, there has been no shortage of market players looking forward to the day when vessel values would reach their peak and begin to descend. This makes vessel acquisitions more attractive, while stock prices that have fallen below NAV almost across the board are making public companies look like increasingly attractive targets.
Even brokers have been getting in on the game, as ICAP Hyde acquires Capital Shipbrokers, together with its 37 staff in London and representative and associated offices in Dubai and Beijing. Rumors also continue to swirl regarding the future of Stamford-based MJLF.
PSA in Acquisition in Argentina – Deutsche Advises Roman Group
PSA International, a leading global port operator, and International Port Holdings (“IPH”) a wholly-owned subsidiary of Global Infrastructure Partners (“GIP”), and Roman Group have formed a joint venture for a strategic alliance to further develop International Trade Logistics (“ITL”), a privately-owned business comprising Argentina’s second-largest container terminal and complementary logistics and warehousing businesses.
Deutsche Bank advised the Roman Group.
The privately-owned Argentinean company operates the Exolgan Container Terminal, which is located at Dock Sud in Buenos Aires province.
This is the second deal in the last year between PSA and IPH, which is a subsidiary of private equity fund Global Infrastructur
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