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Just as we were ready to publish, DHT Holdings and Teekay Tankers announced follow-on equity offerings. DHT intends to offer 8 million shares and will use the proceeds, approximately $40 million based upon today’s closing price, for general corporate purposes. The joint bookrunning managers are UBS, BofA Merrill Lynch and Citi. Dahlman Rose will act as Co-manager and Carnegie as sales agent in Scandinavia.
Equity without Dilution – Seaspan’s Mantra
Last week, we reported on the launching of Seaspan Corporation’s preferred stock issue, which priced last Friday. The company sold 10 million shares of its 9.50% Series C Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share. Net proceeds to the issuer were $241,250,000. Details of the transaction are shown below in the Guts of the Deal.
Preferred Shares from Seaspan
On Wednesday, Seaspan Corporation, utilizing its $1billion shelf registration, filed a preliminary prospectus supplement for a public offering of its Series C Cumulative Redeemable Perpetual Preferred Stock (“Preferred Shares”). The number of shares being offered was not disclosed; however, the liquidation preference is $25 per share. Proceeds will be used for general corporate purposes, which may include vessel acquisitions or investments. Pending the application of funds for these purposes, the company may prepay a portion of its outstanding debt under certain of its revolvers. Following the offering, Seaspan intends to file an application to list the shares on the New York Stock Exchange.
“Re-fi”
Navios Refinances 9½% Senior Notes due 2014
On Friday, Navios Maritime Holdings Inc. and its wholly owned finance subsidiary, Navios Maritime Finance II (US) Inc. announced the offering through a private placement of $325 million of Senior Notes due 2019, in conjunction with its cash tender offer for its 9½% Senior Notes due 2014 (the “2014 Notes”). The new issue will be guaranteed by all of the subsidiaries that guarantee Navios’ existing 8 5/8% first priority ship mortgage notes due 2017. The notes were priced later that day to yield 8 1/8% and the offering upsized to $350 million.
TOO Follows-on Again
Once again utilizing its $750 million shelf registration, Teekay Offshore, on the heels of its August follow-on offering of 5.25 million shares, last week offered to the public a further 5.6 million common units. The units were priced at $28.74, a 4.4% discount to Thursday’s closing price of $29.11. A green shoe of 840 thousand shares has been offered to the underwriters. Proceeds will be used for general partnership purposes, including the acquisition of dropdowns from parent, Teekay. In the interim the partnership expects to use the proceeds to pay down a portion of its outstanding debt under various revolving credit facilities. More details are provided in out Guts of the Deal below.
Shipping IPOs Stage a Comeback – Costamare Files
With the IPO market for shipping shares quiescent since March, Costamare Inc. broke the ice last week and filed its F-1 to begin the process of an initial public offering of its shares. The company is offering 13.3 million shares, which will represent 22.1% of the shares outstanding immediately after the offering, without giving effect to the green shoe. The expected price range is $15 to $17. Assuming pricing at the midpoint, gross proceeds will approximate $213 million and the market value of the company will be $965 million. Proceeds will be used for general corporate purposes and potential future acquisitions. The company may also use a portion of the net proceeds, together with debt financing, to fund it’s already contracted containership acquisitions. Finally, pending any of the preceding, the proceeds may be applied to temporarily reduce outstanding indebtedness. The company intends to pay a quarterly dividend of $0.25/share, which is based upon a payout ratio of 60% to 70% of distributable cash flow. This equates to a yield of 6.25% on the midpoint price. More details on the transaction are included in our Guts of the Deal shown below.
ACLI Receives Platinum Touch
On Monday, American Commercial Lines Inc. announced it had entered into a definitive agreement to be acquired by an affiliate of Platinum Equity, a private equity firm “specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets.” The transaction has an enterprise value of $777 million), which implies a 7.4X TEV/EBITDA multiple using a LTM EBITDA of $104.9 million as of June 30th according to John Parker of Jefferies. Continue Reading
EZ Pass – Navios Maritime Partners Returns for More
On Thursday, after the market closed, Navios Maritime Partners L.P. announced and the next morning it priced it latest follow-on offering. If only everyone found it so easy. It is not simply just the fact of being public. Performance, story and reputation are also crucial and make the process smooth and simple or so it appears. The partnership has already raised $134.6 million thus far this year and with the latest offering will bring the year to date total to $231.7 million.
In this instance, Navios Maritime Partners intends to issue 5.5 million common units at a price of $17.65 per unit, a 5.1% discount from the prior close. In addition, it will offer a green shoe of 0.825 million shares. Exclusive of the green shoe, gross proceeds will be approximately $97.1 million. Upon the closing of the offering, Navios Maritime Holding will own approximately 28% interest in the partnership, after giving effect to the 2% general partnership contribution.
Who Wants to Call the Turn?
We might. While the data may be considered slim and possibly distorted by the $6.75 billion A.P Moller-Maersk transaction, the nine-month 2010 Dealogic shipping data intimates a reversal in the downward trend in syndicated lending which began in 2007. Not only were the number of syndicated deals, volume and new money higher, club deal volume and numbers were down. The latter of course might just reflect deal size, where five of the top fifteen deals were in excess of $1 billion, but we will give the data the benefit of the doubt. In terms of specifics, the number and volume of deals for the 9-months of 2010 was 110 deals totaling $28.4 billion versus the one year earlier total of 90 deals totaling $25.9 billion. The best way to see the trend over time is to look at the data, which we show pictorially below. And, yes, you needn’t remind us that one point does not make a trend.
US Capital Markets Fuel Corporate Activity – Wall Street Firms Execute For Clients
Marine Money Capital Market League Tables Highlight
DnB NOR, Deutsche, Citi and Jefferies
Marine Money’s survey of the global banking community in the spring told a dramatic story. Banks prefer lending to and doing business with public shipping companies. Transparency, performance and the simple fact that public company managements with their access to capital have been among the most active in the business – that activity of course translates into fees – makes the case that capital markets access and execution capability are important skills. We celebrate here the Capital Markets performance of the leading Wall Street banks and their first half contributions to the shipping community.
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