Stolt in Landmark Deal

In what its investment bankers are calling a landmark deal, Stolt Tankers and Terminals Holdings S.A., says it has received commitments for a second private placement of $175 million in unsecured debt.  This is the second time that Stolt has successfully placed private debt. In November 1989, it secured $100 million in unsecured long term private debt.

Mary Ann Ostrander, director of investor relations for Stolt, says that while other shipping companies have obtained funds on an unsecured basis, most of those loans have also included so-called “negative pledge clauses” which require companies not to pledge their assets for other borrowings. She says that makes them, in effect, secured borrowings.

Stolt says the debt will be placed through its wholly-owned subsidiary, Parcel Tankers Inc. It will use the $175 million to repay short-term debt and to fund capital programs including extending the lives of several ships and construction of eight new parcel tankers.  Continue Reading

Pertamina in Major Shipping Expansion

State owned energy conglomerate Pertamina is launching a major investment program which will give further stimulus to Indonesia’s shipping industry. The company intends to offer guaranteed 12 year charters to local companies building 12 new tankers.  Tow of the vessels are around 35,000 dwt, while the remainder are all smaller ships of less than 20,000 dwt each.  Pertamina currently operates a fleet of more than 160 vessels, of which around 65 are owned by the company.  The Indonesian company has also awarded seven oil and gas exploration and production contracts to companies in the UK, the Netherlands, Japan and the US. Continue Reading

P&O Clinches Mega Sale and Leaseback Deal

In a mega ship finance deal worth £400 ($708m), premier UK shipping and transport group P&O has sold and leased back 33 of its 128 ships. The vessels involved in the deal include 11 deep sea container vessels, 15 vessels operated by P&O European Ferries, and four cruise ships. The main financing group is Howell Shipping, the front for a consortium of banks, which has acquired 14 of the ships, including most of the ferry vessels. However, two of the vessels have been lease purchased, so P&O will retain title on the residual value of the ships.

The nine ships refinanced by Abbey National March Leasing (ANML) include the cruise ship Canberra, six ferries and two containers ships. ANML is an interesting participant, as it is the leasing arm of Abbey National, which changed its status from building society to bank a few years ago, and is a newcomer to shipleasing. A spokesman for the company declined to comment on the details of the deal, but told Marine Money, “We do not have a particular view on ship leasing, but assess each case on the credit status of the lessee.” The remaining participants are Barclays Bank interests and Natwest Specialist Finance, which has acquired five large container ships and one ferry.   Continue Reading

600 Million for Polish Newbuildings

Polish Steamship Company (PSC), the bulk shipping arm of the state owned Polish shipping company, recently named the first two vessels of a newbuilding program in Denmark.  The vessels, the Solidarity and the Armia Krajowa,  are the first two ships of a series of six 41,000 grt bulk carriers being built at the Burmeister and Wain (B&W) shipyards in Denmark.

The whole newbuilding program has been financed using a complicated Anparter arrangement worked out by Difko, one Denmark’s leading tax based leasing companies.  The first two ships are held by Difko LXVIII; the next three in the series will be owned by Difko LXIX; and the final one will be owned by Difko LXX.  According to PSC president Mr. Micezyslaw Andruczk, the next three vessels are scheduled to be delivered this year, and the final one in the first quarter of 1992.

Difko LXVIII, which includes the Solidarity and the Armia Krajowa, is a complicated deal that provides investors with both direct cash returns and tax benefits from depreciation allowances.  Despite the complexity of the deal, Difko president Mr. Geir Jansen told Marine Money that the “K/S fund was easy to sell to investors who realized the potential returns, and understood the non-cash benefits.”  He pointed out, however, that due to the nature of the investment product, the project had little appeal to non-Danish residents.  Continue Reading

Norwegian Shipowners Depressed About New Tax Proposals

Reactions among Norwegian shipowners to the new tax reforms have ranged from outright hostility to depressed resignation. The main thrust is aimed at reducing the overall tax rate, while extending its application to areas which enjoyed complete or partial immunity. In practice, this will mean that the privileged position of K/S partners will be under threat, with significant implications for the shipping industry.

The provisions also include more restrictions on tax depreciation allowances and the repeal of most tax credit arrangements, which will broaden the tax base. Thus actual income will form the basis for the new tax regime. However, corporate tax has been reduced from 50.4% to 28%. This should help to stem the outflow of capital from Norway, and ensure that there will be no overall change in the actual tax level for the business sector.   Continue Reading

Navix Continues Restructuring and Secures Bank Concessions

The financial rehabilitation of Navix has continued with further restructuring and the repayment of bank loans.  The Japanese shipping group has sold six ships to its subsidiary Sanwa Shosen for ¥18bn ($127.2m) as part of a restructuring program.  Other planned measures include reorganization of crewing arrangements and a reduction in operating costs.  The vessels sold include three 140,000 dwt ore-coal carriers, an Aframax tanker and two small car carriers of around 9,000 dwt.  Navix has also sold valuable office property in Tokyo. Continue Reading

Naess Jahre Bulkers Reduces Chartered Fleet

The struggling Norwegian shipping concern Naess Jahre Bulkers (NJB) has trimmed the size of its chartered fleet in an effort to resolve its financial problems. The bareboat charters on four OBO carriers – the Emerald, Diamond, Pearl, and Sapphire – have been terminated prematurely, with no financial penalties incurred by either party. In addition, NJB has paid its way out of a charter on another combination carrier which was scheduled for redelivery in 1992. The return of these five ships reduces the size of the NJB fleet to five vessels, comprising two bulkers, two OBO carriers and one tanker. When the charters on the OBOs and the tanker expire, the company will concentrate on the dry bulk market and short term charters.   Continue Reading

New Ship Finance Venture Aims at K/S Market

Norwegian and Dutch financial interests have joined forces for a new ship finance which will be mainly focused on the shipping and offshore markets in Scandinavia. The new venture, known as Nedscan Marine Business, has been established by the Dutch Groups NMB Corporate Investments BV and Dolfinance and former executives of DnB Corporate.  Nedscan has already secured a foothold in the Norwegian market in a collaborative project with Pareto A/S, now a major player in the K/S market, following the takeover of DnB Corporate.   Continue Reading

Beijer Capital is Restructured, But Van Nievelt is Liquidated

Another chapter in the traumatic saga of the COB fleet has closed with the liquidation of Van Nievelt Goudriaan (VNG). The Dutch shipping firm, in the throes of a financial crisis since January, had been fighting for survival under creditor protection since then, so its demise comes as no great surprise. Assurances were given by management that the company’s future was secure, but the extent of the financial problems suggested that its “Chapter XI” status could be little more than a stay of execution. The bankruptcy protection was triggered by the removal of credit lines by Bank Paribas and Credit Lyonnais Nederland, which has since taken over the three COB vessels.  The first signs of financial distress erupted late last year, when Van Nievelt’s Swedish subsidiary Seahorse Shipping Lines (SSL) collapsed, with debts reported to be in the region of $6m. The SSL business, molded on the operation of two shuttle tankers between Lake Venern and Northern Europe, foundered on high operating and finance costs.

The SSL shuttle vessels are smaller derivatives of the three container/oil/bulk ships (COBs) operated by Van Nievelt between the Continent and Northern Sweden. The controversial yet ingenious concept was devised by naval architect Stig-Ake Svennsson around 1980, and was hailed as a major breakthrough in multi-purpose shipping. The innovative design is based on a system of reversible hatch covers or “baffles” capable accommodating dry cargoes and containers on one voyage, and oil products on the return trip. Despite the fact that VNG secured a contract of affreightment from the Swedish timber group Stora for the southbound trips, the 6,000 dwt vessels proved too costly for the company, already hit hard by the collapse of its Swedish subsidiary.    Continue Reading

Nothing Mickey Mouse About This Carnival Cruise Deal

Carnival Cruise Lines Inc. has agreed to acquire Premier Cruise Lines in a deal valued at $372 million. The acquisition could open up additional markets for the giant cruise company.

Carnival, whose subsidiaries include Holland America Line and Windstar Cruises, is the largest cruise line in the world in terms of passengers carried – over 950,000 in 1990.  It has a fleet of 15 ships with 16,000 berths. Premier, which is 80 percent owned by Dial Corp. (formerly Greyhound), has three ships with 2,950 berths.

Premier offers cruises between Port Canaveral in Florida and the Bahamas. In addition, it has an agreement which allows it to bill itself as the “official” cruise line of Disney World in Florida and arrange package deals with the amusement park. The arrangement helps it attract young families to its ships.  It is negotiating to sign a similar deal with the Walt Disney Co. for its Disneyland amusement park in Anaheim, California. Analysts point out that Disney also has an amusement park in Japan and is about to open one in France, so the acquisition might help Carnival eventually expand abroad. A company spokesman said, however, that such speculation was premature. Continue Reading