Pegasus Shipping: Facing Down Adversity

According to Pegasus, the purpose of the bond offering is to take advantage of the characteristics of the North-South American Trade Routes (principally the increasing U.S. demand for oil, coupled with the suitability of panamax tankers for this dirty trade and barriers to entry created by environmental regulations necessitating increasingly higher operating standards). Additionally, Pegasus states that it benefits from strong relationships with major charterers and operates a well-maintained and well-managed fleet. [More...]

Pegasus has recently purchased three vessels from the London & Overseas Freighters Fleet at an en bloc purchase price of $51.50 million. Pegasus has also purchased a vessel from Tanker Pacific for just under $14 million and is reported to have purchased the M/T Terra Nova (60,959 dwt, built 1983 at Oshima) from Far Eastern sellers for $16.5 million. Finally, Pegasus forecasts the purchase of one additional vessel in 1998. In a manner consistent with several other recent high yield offerings, a significant portion of net proceeds have been utilized to prepay existing amortizing bank debt: 36% for Pegasus versus 27% for B+H Equimar and 51% for Global Ocean.

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