Home About UsPublicationsForumsConsultingContact Us
Back to Earlier Search Results New Search Logout

Links

CMA Shipping 2011

Marine Money Forums

Marine Money Asia Week

Freshly Minted Newsletter

Marine Finance Dashboard

Buy-Out Fund in Default

Private Equity Fund Nautical Offshore (“SOS”), a SPV fund belonging to Affinity Equity Partners, had its controlling 54.8% stake in Singapore listed shipbuilder and offshore vessel owner/operator Jaya Holdings seized by its lenders after defaulting on the syndicated debt facility. Affinity Equity Partners is an independently owned buyout fund manager that was spun out of UBS Capital Asia Pacific – the private equity arm of UBS AG in March 2004. In 2006, SOS acquired a 29.3% equity stake in Jaya Holdings and subsequently raised its stake to a controlling 54.8%. A five year USD 233 million syndicated loan was utilised to finance the leveraged buyout.

According to Reuters, the syndicate of banks, as many as thirteen lenders, are in advanced discussions with several buyers. It is reported that SOS had attempted to offload its stake in Jaya as early in 2010, but few bids came in due to the bearish sentiments on the shipping market. Indicative pricing on SOS’s debt in the secondary market is priced 60 to 65 cents on the dollar today, which suggests that lenders would have to accept a haircut.

This is only an excerpt of Buy-Out Fund in Default

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

Existing Users Login

Username
Password
 


Related Archive Files


Written by: | Categories: Asia, Bank Debt, Private Equity | February 10th, 2011 |

Tags: · , ,

Leave a Reply

You must be logged in to post a comment.

Copyright 2008. Marine Money. All Rights Reserved.