Same Deal Just a Bit More Opaque For Now

Not to be defeated, Bob Burke’s Ridgebury Tankers is back on its feet shaking off the lukewarm reception from the 144A institutional market. Changing its focus, Ridgebury filed a preliminary prospectus for an IPO after the market closed Friday. Although details for the moment are scarce, the deal structure remains virtually unchanged except for the fact that that the three Teekay Suezmaxes are no longer part of the deal, creating a void that needs to be filled. We expect that specific vessels will be identified prior to the road show.

According to the filing, the company intends to raise a maximum of $250 million, which proceeds will be used to acquire three to four Suezmax tankers, which will be deployed in the Blue Fin Tankers Pool, managed by Heidmar Inc., for a minimum of three years. In addition, a portion of the net proceeds will be used to pay the commitment fee in respect of the credit facility, described below and for working capital. The pool, which is currently the 2nd largest spot market-related Suezmax tanker pool in the world, currently operates a fleet of 18 vessels with 9 different pool partners. The relationship with Heidmar extends beyond these initial tankers with Ridgebury having committed to put any subsequently acquired Suezmax tankers into the pool as well as any other tankers into an appropriate tanker pool operated by Heidmar, also for a minimum of three years. Like Teekay did in the original offering, we would expect Heidmar to purchase shares in the offering as the quid pro quo for this commitment. Third party technical management will be provided by Bernard Schulte Ship Management, a company that currently manages 600 vessels.
Continue Reading

Written by: marinemoney | Categories: Freshly Minted, The Week in Review | July 8th, 2010 | Add a Comment

Heidmar Move Signals Value of Pools

In a brilliant transaction for all parties, Heidmar Inc. announced Wednesday that Shipping Pool Investors Inc, (SPII), a company affiliated with the Cardiff Group whose founder is Mr. George Economou (DRYS), has entered into a definitive agreement to pur chase a 49% stake in the company. In a related transaction, senior members of Heidmar’s management will purchase a 2% equity stake in the company. Morgan Stanley, through its subsidiary Morgan Stanley Capital Group Inc. will retain a 49% ownership stake in the company.