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Marrying the Bankers’ Greatest Nightmare with the Advisors’ Dream – Omega Navigation Files Chapter 11

Last Friday, after the markets closed, Omega Navigation Enterprises Inc. announced that it along with certain subsidiaries had filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. The filing seeks protection for the publicly listed company and all of its 100% owned vessel owning companies. Excluded from the filing is the company’s technical vessel manager, Omega Management, Inc. as well as two subsidiaries which hold part interests in five on the water vessels and two newbuildings under construction.

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Categories: Freshly Minted, The Week in Review | July 14th, 2011 | Add a Comment

Straightforward Solution – The Banks Express Confidence in Genmar

On Wednesday, General Maritime Corporation announced that it had amended its $550 million revolving credit facility and its $372 million senior secured credit facility, each led by Nordea and DnB NOR as well as its $200 million facility with Oaktree Capital to reduce the minimum cash covenant. Under the agreed terms, the minimum cash and cash equivalent balance and revolver availability is reduced from $50 million to $35 million through December 31, 2011, which amount steps up to $40 million through March 31, 2012. Subsequent to the latter date, the original terms apply. In the case of the Oaktree facility only a 10% cushion in Genmar’s favor applies.

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Categories: Freshly Minted, The Week in Review | July 14th, 2011 | Add a Comment

Gaining Flexibility – Scorpio Re-structures Credit Facility

At the end of the day, every trader will tell you it is always about options. In a move to gain flexibility, Scorpio Tankers announced that it had converted its 2010 Credit Facility, led by Nordea, DnB NOR and ABN AMRO, from a term loan to a reducing revolving credit facility. With an availability of $137 million, representing the balance of the original term loan, the new facility gives the company the ability to pay down the outstanding balance when it has excess cash and re-borrow from the total available commitments as needed. The commitment reduces at the end of every quarter by $4.1 million until the loan matures in June 2015. All of the covenants and terms in the amended credit facility are substantially the same as the covenants contained in the original Credit Facility. A commitment fee equal to 40% of the applicable margin is payable on the unused portion, if any, of the total available commitment amount.

Categories: Freshly Minted, The Week in Review | July 14th, 2011 | Add a Comment

CECO Housecleaning – Eitzen Gas and Ethylene Carriers Disposed Of

Last week, Camillo Eitzen & Co. ASA (“CECO”) announced that it had agreed to sell its nine 100% owned semi-ref vessels along with its 100% shareholding in Eitzen Gas to C-Gas AS, an investment company established by Pareto Project Finance with Bergshav Group of Grimstad as the disponent owner acquiring a 51% interest along with two others who took the rest of the deal. The purchase price is $53 million, subject to adjustments for working capital, which will yield an estimated profit on the sale of the Semi-ref vessels of approximately $4 million.

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Categories: Freshly Minted, The Week in Review | July 14th, 2011 | Add a Comment

Reverting to the Mean?

Last week, Dealogic published its Bookrunner and MLA Tables for Syndicated Marine Finance Loans for the first half of 2011 and while growth is clearly evident, there is a noticeable defining trend. The offshore services sector, given its strength and capital requirements, is taking on a far more meaningful role.

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Categories: Freshly Minted, The Week in Review | July 14th, 2011 | Add a Comment

Cross Border to Oslo – Asia Offshore Drilling Finds Capital

A subsidiary of Thoresen Thai Agencies Public Company Limited, Mermaid Maritime Public Company Limited (“Mermaid”) was incorporated in 1983 and operates in two specialized niches within the offshore oil and gas sector. Mermaid Drilling Services provides drilling services while Mermaid Offshore Services Limited provides sub-sea engineering services. The former was the owner and operator of two tender drilling rigs, which business management had targeted for expansion by earmarking over $70 million for future investments.

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Categories: Freshly Minted, The Week in Review | July 7th, 2011 | Add a Comment

Ocean Product Tankers DIS – Cleaves’ Offering

Late last month, Cleaves Marine Finance was circulating an invitation to invest in Ocean Product Tankers DIS, a newly formed Norwegian silent partnership which has agreed to acquire three modern product tankers from Bergshav Product Tankers KS (“BPT KS”). The main investor will be Bergshav Management AS, which will purchase a 20% limited partnership interest and serve as the marine manager.

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Categories: Freshly Minted, The Week in Review | July 7th, 2011 | Add a Comment

Batten Down the Hatches – Hoegh LNG Finds It Isn’t that Easy

Despite being the hottest sector in shipping, Hoegh LNG Holdings Limited encountered headwinds in its initial public offering. The company hoped initially to sell 15-25 million shares at a price range of NOK 38 to 54 in order to raise gross proceeds of approximately NOK 810 million to NOK 945 million ($198-282 million). As part of the offering, which consisted of an institutional tranche, a retail piece in Norway and an employee offering in Norway, Leif Hoegh & Co. Ltd, the parent agreed to subscribe for up to $20 million worth of shares to maintain a minimum 55% interest post-IPO and over-allotment option. For further details, see the Guts of the Deal below.

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Categories: Freshly Minted, The Week in Review | July 7th, 2011 | Add a Comment

Brock Securities Expands Capital Raising Platform

Jay A. Rodin, Eric G. Abitbol and David B. Newman have joined Brock Securities, a subsidiary of Brock Capital Group LLC. Under the banner of Brock Capital Markets, their task will be to expand upon the capital raising and associated investment banking activities of the Brock Group. The principals have arranged capital markets in excess of $5 billion, which have included public offerings, private placements, mergers and acquisitions, special purpose acquisition companies (SPACs), private investments in public equity (PIPEs) and secondary offerings. The industry expertise of Brock Capital Markets includes the maritime, metals and mining, energy, real estate and financial sectors.

Categories: Freshly Minted, Market Commentary | June 30th, 2011 | Add a Comment

Sound Familiar? – A Cautionary Note

In an article which appeared in Wednesday’s New York Times entitled “Commercial Lenders Take Step Into Riskier Deals”, the reporter, Julie Satow, dissects commercial real estate lending but the article should serve as a warning to shipping bankers. We have extracted below a few of the more relevant paragraphs for your perusal:

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Categories: Freshly Minted, Market Commentary | June 30th, 2011 | Add a Comment
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