Why Wait? – OSG’s Forward Start Revolver

Last week, Overseas Shipholding Group, Inc. announced it had entered into a $900 million unsecured forward start revolving credit that matures on December 31, 2016. The company may begin to borrow under the facility on February 8, 2013, the date on which OSG’s current facility expires. With an interest rate of LIBOR + 2.75%, the new facility incorporates the same financial covenant package as the original facility as well as an “accordion feature”, which permits an increase in total availability of up to $1.25 billion through additional bank subscriptions prior to the start date. Even with the accordion feature, the availability is less than the original facility it replaces.

Written by: marinemoney | Categories: Freshly Minted, The Week in Review | June 2nd, 2011 | Add a Comment

Regent Seven Seas 2nd Lien Notes

Last week, Seven Seas Cruises S. DE R.L., the indirect owner of Regent Seven Seas’ three luxury cruise vessels successfully issued $225 million of 9 1/8% senior secured notes due in 2019. Due to strong demand the offering, sold at par, was upsized from $200 million to $225 million and priced at the tight end of price talk. The notes were rated B- and B3 respectively by Moody’s and S&P. The issuer is owned by Prestige Cruise Holdings Inc., a holding company which also owns Oceania Cruises and is itself ultimately controlled by Apollo Management.

Written by: marinemoney | Categories: Freshly Minted, The Week in Review | May 19th, 2011 | Add a Comment

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.

Written by: marinemoney | Categories: Freshly Minted, The Week in Review | December 9th, 2010 | Add a Comment

GMF Launches Badaro #14

Global Maritime Financing (“GMF”) has successfully closed its latest ship fund under the Ship Investment Company (“SIC”) Act in South Korea. This could well be the first SIC created since the financial crisis broke out in 2008. Market reports suggest that the fund Badaro No. 14 Ship Investment Co. raised 72 billion won (USD 63 million) and acquired a newbuilding 180,000 DWT Capesize bulk carrier at Sungdong Shipbuilding & Marine Engineering. The vessel upon delivery in May 2011 will be chartered to Hyundai Merchant Marine under the bareboat charter hire purchase (“BBCHP”) structure.

40% of the financing comes from a junior loan provided by local institutional investors and underwritten by Mirae Asset Securities while the remaining 60% is satisfied by a 5 year senior loan from Calyon (now rebranded as Crédit Agricole Corporate and Investment Bank). Korea Exim Bank provided the refund guarantee for the newbuilding. Continue Reading

Written by: carisk | Categories: Asia, Bank Debt | February 26th, 2010 | Add a Comment

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

Written by: carisk | Categories: Asia, Bank Debt | November 5th, 2009 | Add a Comment

SMBC Builds up Shipping Group

Japanese Sumitomo Mitsui Banking Corp. is expanding their ship finance activities outside Japan and has employed Mr. Stanislas Roger as head of shipping finance, responsible for all their activities outside Japan. The bank, with a shipping portfolio of close to $4.5 billion, has been very active in the Japanese market and is now the first Japanese bank to setup a designated team for shipping finance outside the country. As many of you know, Mr. Roger came from Credit Lyonnais, where he was head of shipping until the bank merged with Credit Agricole to become Calyon last year. SMBC shipping group is now represented in London and Paris.

Japanese Sumitomo Mitsui Banking Corp. is expanding their ship finance activities outside Japan and has employed Mr. Stanislas Roger as head of shipping finance, responsible for all their activities outside Japan. The bank, with a shipping portfolio of close to $4.5 billion, has been very active in the Japanese market and is now the first Japanese bank to setup a designated team for shipping finance outside the country. As many of you know, Mr. Roger came from Credit Lyonnais, where he was head of shipping until the bank merged with Credit Agricole to become Calyon last year. SMBC shipping group is now represented in London and Paris.

Written by: carisk | Categories: Debt, Freshly Minted | January 20th, 2005 | Add a Comment