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A Rising Tide Not Only Lifts All Boats, But Also Allows a Recapitalization and Perhaps Even an Exit
Last week, Hapag-Lloyd began marketing a $500 million bond issue in Europe and the U.S. to qualified investors, as part of a debt re-structuring, which will most importantly, stabilize the company’s balance sheet. The company intends to issue $500 million in the aggregate of senior unsecured notes, which will consist of a combination of dollar denominated notes due in 2017 and Euro denominated notes due in 2015. The notes will be guaranteed on a senior basis by “Albert Ballin” Holding, the shareholding entity. Initially, the proceeds of the notes will be escrowed and released only upon the receipt by the company of a minimum of $290 million of proceeds from the K-sure financing (Ex-Im financing, guaranteed by the Korea Trade Insurance Company, for the acquisition of 6 x 8,749 TEU containerships to be built at Hyundai). More details, based upon the preliminary prospectus and market talk, are provided in our Guts of the Deal herein.
Not a Shell Game But a Good Outcome – Fredriksen Re-jiggers his Orderbook
We refer to a shell game not in a pejorative sense but only in that Mr. Fredriksen arrived with something, left with something different and was richer for it. Like most of Mr. Fredriksen’s dealings, this was not simple. It involves two of his companies, Frontline and Golden Ocean Group (“GOGL”) and two shipyards, one Chinese and the other Korean.
Dutch Conservatism – Money and Approval First
Dockwise Limited is in the process of conducting a feasibility study for the acquisition of a new “Type O” semi-submersible vessel that will increase capacity and further strengthen the company’s position at the top end of the market. The vessel is designed for the transportation of extremely large and heavy production platforms and will exceed the capacity of its 73,000 DWT Blue Marlin. With a unique new design, this vessel will transport the new and larger oil and gas production equipment that is planned to come to the market from 2012 and onward. The expectation is that there is demand for pre-fabrication of even larger integrated production platforms and spar buoys, the design and construction of which is limited by the available means of transport.
On the Shelf – Navios Maritime Acquisition Files
Having just completed the acquisition of seven VLCCs for $587 million, Navios Maritime Acquisition, recently filed a broad shelf registration allowing it to issue up to $500 million of common stock, preferred stock, warrants and/or debt securities. With the latest deal digested, firepower in hand and the summer over, watch out.
World Fuel Taps the Equity Market for Growth
On Tuesday, World Fuel Services closed of its previously announced public offering of 8 million shares of its common stock. The shares were offered under its effective shelf registration, which provides solely for the issuance of common equity, filed just prior to the announced offering. Due to demand, the offering was upsized from 7.57 million shares, an increase of 5.7%, and the underwriters exercised in full the green shoe of 1.2 million shares. Net proceeds of the offering amounted to approximately $219 million. Proceeds of the offering will be used for general corporate purposes including potential acquisitions. More details are contained in the Guts of the Deal enclosed herein.
Also On the Bandwagon – Ship Finance Issues a Bond
Earlier today, Ship Finance International announced it had successfully placed a new senior unsecured bond loan in the Norwegian credit market. The total loan amount is NOK 500 million, which is equivalent to approximately $85 million. The bonds will mature in April 2014 (3.5 years) with loan proceeds to be used for general corporate purposes. Pareto was the arranger of the bond.
First Time Cooperation Yields Success for NOCC
This week for the first time Nordea and RS Platou joined forces and together successfully concluded a NOK 200 million senior unsecured bond issue for Norwegian Car Carriers ASA (“NOCC”). The transaction was well received with the books closed when the targeted amount was reached. Sold at par, the bond has a tenor of five years and carries a coupon of 10.5%. Proceeds will be used to re-purchase NOK 4 million in the bond loan EID01 and NOK 42 million face value in the bond loan EID02. After repayment, the outstanding amounts under the issues would be respectively NOK 25.5 million and NOK 28.5 million. The excess proceeds, NOK 154 million, will be used for general corporate purposes. Further details are provided in our Guts of the Deal below.
Big Turnaround
This year’s big story at Marine Money is taking place today in Rio de Janeiro at our 7th Annual Latin American Ship and Offshore Forum where the room is filled to the rafters. After three years in Miami, where the conference lacked an identity and a following, Mike McCleery and Lorraine Parsons made the brilliant decision to shift the conference to Rio to piggyback on the Rio Oil and Gas Conference. The geographical shift as well as the decision to make it an offshore conference contributed to a record number of attendees totaling in excess of 270.
Global Container Lines Successfully Exits Bankruptcy
Global Container Lines (GCL), a leading provider of transportation and logistics services worldwide, received confirmation of their Plan of Reorganization from the United States Bankruptcy Court Eastern District of New York and successfully emerged from Chapter 11 bankruptcy protection on September 15, 2010.
Organic Growth Made Easy – Teekay Offshore Considers Dropdowns
The answer, of course, is yes. Given the opportunity to participate in the improved master agreement with Statoil for shuttle tankers negotiated by its 51% subsidiary Teekay Offshore Operating L.P. (“OPCO”) and to purchase an FPSO on long-term charter to Petrobras, we can’t imagine the company is dawdling, but only waiting for the ink to dry on the fairness opinion.
First, we should describe the new master agreement with Statoil that Teekay Offshore Partners announced last week, which replaces an existing volume dependent life-of-field contract of affreightment with fixed rate, life-of-field time charter contracts for seven dedicated shuttle tankers.
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