Equity Momentum

By Matt McCleery

Roadshows and red herrings, quiet periods and Lucite “deal toys” – all we can say is after two years of bitter high yield restructuring, it feels damned good to see new deals getting done and value being created, not just battled over.

What’s more, the deals we’ve seen actually look good. We hate to be cynical, but in some cases tanker equity offerings have provided little more than a lucrative exit for in-the-know insiders. That doesn’t seem to be the case this time around. Stelmar accepted dillutive pricing and gave up majority control in an effort to build a larger, public, transparent organization – and they have already been richly rewarded for doing so. Genmar is a bona fide tanker consolidation story. Most of the General Maritime investors are locked into the deal for a year with an uncertain outlook for tanker stocks.

This is only an excerpt of Equity Momentum

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