Bank Financing of a 1985- Built Product Carrier

For purposes of this exercise, let’s assume the following:

• It is now 2002 and the ship is 17 years old.

• The ship is currently owned by a special purpose corporation (the “SPC”) which is in turn 100% owned by a holding company (“HoldCo”) that also owns 19 other special purpose vessel owning entities, each of which owns a product tanker similar to the ship.

• HoldCo seeks to refinance its entire fleet of 20 product tankers and is looking for an advance rate of between 60% and 80% of the fair market value of the fleet.

This is only an excerpt of Bank Financing of a 1985- Built Product Carrier

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.