Private equity funds have long had a glamorous reputation as the real movers and shakers in the financial world, buying and selling companies at will and making tremendous returns for their partners and investors. While they are under some pressure now as the easy access to capital they rely upon has been hampered, this was not so in 2006. And it is the 2006 crop of SPACs that is just now coming to maturity, driving the volume of acquisitions by SPACs to $3.9 billion so far this year, more than six times the comparable period in 2007, according to Dealogic.
It was in just this time period, in August 2006 to be precise, that Marathon Acquisition Corp came to the public markets, backed by Michael Gross, a founding partner of private equity powerhouse Apollo. Fast forward to February 2008, however, and Mr. Gross’s SPAC was quickly closing in on its deadline to announce an acquisition target or risk being liquidated. Continue Reading
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carisk | Categories:
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Transaction Report | March 27th, 2008 |
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FM understands that former GE Capital shipping banker Kevin Kennedy, who has been involved with Great Circle Capital in recent years, has joined Vancouver-based Seaspan as CFO. The combination seems like an absolutely perfect fit for both sides. While at GE, Kennedy was active in doing structured financing and leasing for marine assets – which is exactly what Seaspan does through its long-term charters of container vessels to China Shipping and CP Ships. Now everyone who knows us knows we hate to speculate, but when we see a company like Seaspan hire a CFO like Kevin Kennedy at a time like this, we cannot help but wonder if they aren’t considering a major corporate transaction such as an IPO or major acquisition.
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carisk | Categories:
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People & Places | May 26th, 2005 |
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CP Ships announced this week that it has acquired Borg International Freight Services, Inc., a Montreal-based ocean and air freight forwarding company. While Borg’s 2004 revenue is reported to be in the realm of $14 million, terms were not disclosed. The acquisition came amidst market speculation that China Shipping Group has been preparing a hostile $1.2 billion takeover bid for the liner company.
Prior to this news, UBS Investment Research issued a report calling CP Ships’ risk/reward picture unattractive despite firm rates, noting that the company is priced at a premium to comparables.
2004 Earnings Begin to Roll In – Some Break Records,
Others See Mixed Results
Public tanker companies OMI Corporation and Teekay Shipping both started the year off with a bang by announcing last year’s results, showing growth that was virtually off the charts. Tanker yield play Knightsbridge also brought exceedingly strong numbers, enough to prompt Jefferies analysts Magnus Fyhr and Douglas Mavrinac to commend the company for exceeding expectations, though not enough to lift the company any further than its HOLD rating. CP Ships enjoyed modest growth of both net income and revenue, even as the company recovers from its results restatement in 2003 and deals with the class action lawsuits that followed in its wake. Meanwhile, US-flag petroleum transporter Maritrans saw a rise in revenue paired with a drop in net income, though.
Public tanker companies OMI Corporation and Teekay Shipping both started the year off with a bang by announcing last year’s results, showing growth that was virtually off the charts. Tanker yield play Knightsbridge also brought exceedingly strong numbers, enough to prompt Jefferies analysts Magnus Fyhr and Douglas Mavrinac to commend the company for exceeding expectations, though not enough to lift the company any further than its HOLD rating. CP Ships enjoyed modest growth of both net income and revenue, even as the company recovers from its results restatement in 2003 and deals with the class action lawsuits that followed in its wake. Meanwhile, US-flag petroleum transporter Maritrans saw a rise in revenue paired with a drop in net income, though.
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carisk | Categories:
Equity,
Freshly Minted | February 17th, 2005 |
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“It is the rare item that inspires a bargain hunter to pay a premium. That’s why when CP Ships, whose very identity is defined by buying out-of-favor companies on the cheap, marched up to the Wall Street counter and ordered $200m worth of bonds yielding 10.75%, the ship finance industry was momentarily in shock.”Marine Money, June 2002
Like all capital markets, the public debt market opens and closes as unpredictably and as inexplicably as the shipping markets rise and fall. As one bond underwriter in New York said, “the high yield bond market is only about twice a year, so companies need to be ready and execution needs to be perfect.”
Although slipping gracefully through an open window, as JP Morgan did for Stena and Morgan Stanley did for Seacor, is a pretty thought, the reality is that the capital needs of companies generally don’t coincide with the few and fleeting moments that the bond window is open. This scenario sometimes leaves issuers with an unfortunate task – jumping through a closed window, and hoping they don’t get too bloodied along the way. That’s exactly what happened in the case of thisyear’s award winner.
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