Update on Evergreen Marine’s USD 824 million loan

A few more details have emerged on Evergreen Marine’s recently concluded USD 824 million syndicated facility. The loan, which was made up of two USD 247 million tranches and a USD 330 million tranche, was secured through its three subsidiaries Evergreen Marine Corp (Taiwan), Evergreen Marine (UK) and Evergreen Marine (Singapore). According to sources, the pre-delivery loan components were priced at 95 bps above LIBOR and the post-delivery portions were at 90 bps in excess of LIBOR. The facility was also structured in such the way that should the difference between Taiwanese inter-bank rates Taifx and LIBOR exceed by 35 bps, Evergreen will have to pay the lenders the excess over the 35 bps spread differential.

The syndicated loan, payable over ten years, was arranged by Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, Taipei Fubon Commercial Bank, E.Sun Commercial Bank. Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank and Mega International Commercial Bank joined in as participants. Proceeds will be used to finance the construction of ten 8,000 TEU post-panamax containerships ordered at Taiwanese shipbuilder CSBC Corp for USD 1.03 billion in May 2011. Continue Reading

Evergreen Marine Inks USD 824 million from Taiwanese lenders

Asian banks, including those based in Southeast Asia, continue to have an appetite for shipping and offshore, but capital is likely to be reserved for the domestic names in their respective countries. Taiwan based Evergreen Marine has announced that it has signed a USD 824 million syndicated loan agreement with nine domestic banks to fund the construction of ten 8,000 TEU post-panamax containerships ordered at Taiwanese shipbuilder CSBC Corp for USD 1.03 billion. The syndicated loan, payable over ten years, was arranged by Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, Taipei Fubon Commercial Bank, E.Sun Commercial Bank, and four other undisclosed financial institutions. The ships are scheduled for delivery between 2013 and 2015.

Reverting to the Mean?

Last week, Dealogic published its Bookrunner and MLA Tables for Syndicated Marine Finance Loans for the first half of 2011 and while growth is clearly evident, there is a noticeable defining trend. The offshore services sector, given its strength and capital requirements, is taking on a far more meaningful role.

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Ship Finance Syndications Back?

The syndication market is showing signs of thawing, as evidenced by the number of shipping and offshore transactions in the market. In September 2010, a syndicate of international lenders made available a syndicated project loan facility of up to an aggregate of USD 110 million to a joint venture company incorporated in the Marshall Islands, to part finance various project and construction costs in relation to the heavy lift derrick pipe laying barge with 3,000-tonne crane. The syndicate comprised arranger ABN AMRO Bank, Singapore Branch, NIBC Bank in Singapore, Credit Industriel et Commercial, Singapore Branch and Northern Barge.

Built by ASL Marine shipyard in Singapore, the vessel was initially delivered to joint venture company Swiber PJW 3000, an SPC with three shareholders, Maas Capital, Siva Group and Singapore listed offshore services provider Swiber Holdings, each owning one third of the shares. The vessel was subsequently put on a 10 year bareboat charter with Swiber. Watson, Farley & Williams acted as lead and English counsel to the lenders. Continue Reading

A Noble Breed

Last week, our sister publication Freshly Minted reported on Maersk’s successful EUR 750 million (USD 1.3 billion) five-year bond. This was the shipping conglomerate’s first bond issuance, following a recent equity offering of USD 1.7 billion. In Asia, commodity trading house Noble Group has likewise found tremendous success in raising funds, suggesting that investors and bankers are getting warmed up to investing cash again. Continue Reading