Links
Super Singapore
More than 515 delegates came to the newly opened Marina Bay Sands casino and conference center for Marine Money’s Singapore week conference and stayed until the IRI reception at the very end at 1 Altitude the new highest alfresco bar in Singaopre where the 360 degree view was as big as the prospects for Asia and shipping (except MRs) appeared throughout the two day conference.
Dr. Marc Faber’s challenging, entertaining and ultimately gloomy forecast (buy a garden and get out of cities where bombs and ruin alone will prosper) was largely forgotten by the end where nine of Asia’s most important bankers were largely hopeful, clearly clubby and open for business (except HSH who clearly was effectively tidying up its house with an eye for the future, so not entirely bearish).
Written by: marinemoney | Categories: Freshly Minted, Market Commentary | September 30th, 2010 | Add a Comment
Hapag-Lloyd Ponders Its Future
As questions about Hapag-Lloyd’s future continue to circulate, we thought it worth a refreshed look at how the deal came about and where it might be going. Hapag-Lloyd parent TUI’s interests have long been split between its core tourism business and a fairly substantial container shipping business, representing EUR 449 million and EUR 197 million respectively in 2007 underlying EBITDA. TUI bolstered the shipping side of its business with the $2.3 billion acquisition of CP Ships in late 2005 that was also the catalyst for a $1.8 billion bank refinancing, handled by HVB, Deutsche Bank and Citi, and a EUR $1.75 billion bond issue handled by HVB, HSH, Citi and RBS.
Continue Reading
Written by: carisk | Categories: Freshly Minted, The Week in Review | July 24th, 2008 | Add a Comment
CMA-CGM Finds Public Buyers in Marathon
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
Written by: carisk | Categories: Freshly Minted, Transaction Report | March 27th, 2008 | Add a Comment
Robin Das – Departs WestLB, Joins HSH Nordbank AG
Robin Das – Departs WestLB, Joins HSH Nordbank AG
In a move nicely timed to correspond to our 4th Annual Ship Finance Forum – Hamburg held today, our friends at HSH have hired Robin Das as the Head of the newly created Structuring and Development unit in the Shipping Department effective February 22, 2005. Robin Das is, of course, known to many of you from his days at JP Morgan and WestLB. This move is a significant one for HSH, which has the largest shipping portfolio in the world with about $20 billion in drawn and undrawn facilities. Robin’s role in the massive bank, a combination of Hamburgische Landesbank and LB Kiel, will be to offer “complex finance structures”. For example, the Bank has already financed three LNG carriers as sole underwriter during 2004. According to the release, “Structuring and Development” is a service provider for the other units in the Shipping Department of HSH Nordbank and is responsible for developing innovative financial products. “Structuring and Development” will focus on larger, complex and structured finance products for the Shipping Department’s customers, thereby supporting its other units by systematically broadening and diversifying its product base for the benefit of its customers.”
In a move nicely timed to correspond to our 4th Annual Ship Finance Forum – Hamburg held today, our friends at HSH have hired Robin Das as the Head of the newly created Structuring and Development unit in the Shipping Department effective February 22, 2005. Robin Das is, of course, known to many of you from his days at JP Morgan and WestLB. This move is a significant one for HSH, which has the largest shipping portfolio in the world with about $20 billion in drawn and undrawn facilities. Robin’s role in the massive bank, a combination of Hamburgische Landesbank and LB Kiel, will be to offer “complex finance structures”. For example, the Bank has already financed three LNG carriers as sole underwriter during 2004. According to the release, “Structuring and Development” is a service provider for the other units in the Shipping Department of HSH Nordbank and is responsible for developing innovative financial products. “Structuring and Development” will focus on larger, complex and structured finance products for the Shipping Department’s customers, thereby supporting its other units by systematically broadening and diversifying its product base for the benefit of its customers.”
Written by: carisk | Categories: Freshly Minted, People & Places | February 24th, 2005 | Add a Comment
George Economou’s DryShips Files S-1: A Look Inside
George Economou’s DryShips Files S-1 ~
A Look Inside
George Economou’s dry bulk shipping IPO, to be called “DryShips”, filed a prospectus today to sell 7.1 million shares at $16-$18 each in an initial public offering with underwriters Cantor Fitzgerald & Co., Hibernia Southcoast Capital, Oppenheimer & Co., Dahlman Rose & Company, and HARRISdirect. A market report from CBS Marketwatch today reported that the price range is actually $14-$16. DryShips plans to pay a 5% dividend and will be listed on the Nasdaq under the ticker symbol “DRYS.”
As is our policy, we will refrain from presenting our valuation of the company intil the transaction is complete, so the following facts have been taken directly from the offering document.
Sources & Uses of IPO Funds
As the accompanying chart illustrates, at the time of the offering DryShips will own five panamax and one capesize vessel. The company also has 11 more dry bulk carriers on subjects for an aggregate cost of $322 million.
The the company states it will use the estimated $111.5 million net proceeds of the offering together with $145 million borrowed under a new $185 million credit facility from Commerzbank and HSH, 1.35 million shares and up to $30 million under another credit facility that it plans to put together to finance the purchase. The company will have $7.0 million in cash immediately prior to the closing of this offering.
According to the document, DryShips will acquire the capesize drybulk carrier Netadola and five panamax drybulk carriers – Paragon, Samsara, Waikiki, Toro, and Iguana – from companies beneficially owned by Mr. Economou’s sister for a total purchase price of $197.8 million with delivery by April 29, 2005. Netadola and the four Panamax drybulk carriers, Paragon, Samsara, Waikiki and Toro, will come in at the same purchase prices as those companies paid when they acquired the vessels from unaffiliated third parties ($164.3 million), and the panamax drybulk carrier Iguana will be acquired at its fair market value ($33.5 million). DryShips will buy the remaining five Identified Vessels directly from unaffiliated third parties at the aggregate purchase price of $119.0 million.
Of Dilution & Dividends
As the chart shows, new investors in DryShips will experience substantial dilution upon consummation of the offering. The reason for this is that, at October 31, 2004, as adjusted for subsequent events, DryShips had negative net tangible book value of $(4.7) million, or $(0.31) per share.
DryShips plans to issue a dividend to pre-offering shareholders of $69 million, comprised of $51.0 million of retained earnings as of October 31st and $18.0 million of earnings of the Initial Fleet for the period between November 1, 2004, and the date of this prospectus. The $69.0 million dividend has been accrued and reflected as a payable in the October 31, 2004 financial statements.
According to the prospectus, “After giving effect to the sale of 8,452,942 shares of common stock at a price of $17.00 per share, which is the mid-point of the expected range of $16.00 to $18.00 per share in this offering, and assuming that the underwriters’ over-allotment option is not exercised, the pro forma net tangible book value at October 31, 2004, would have been $130.1 million or $5.45 per share. This represents an immediate appreciation in net tangible book value of $5.76 per share to existing shareholders and an immediate dilution of net tangible book value of $11.55 per share to new investors.”
Strategy
DryShips intends to employ the vessels in the spot charter market, under period time charters and in drybulk carrier pools. The ships will be managed by Cardiff, which is under common control with DryShips. DryShips plans to grow its fleet through the acquisition of 10-20 year old capesize, panamax, handymax and handysize vessels.
George Economou‘s dry bulk shipping IPO, to be called “DryShips”, filed a prospectus today to sell 7.1 million shares at $16-$18 each in an initial public offering with underwriters Cantor Fitzgerald & Co., Hibernia Southcoast Capital, Oppenheimer & Co., Dahlman Rose & Company, and HARRISdirect. A market report from CBS Marketwatch today reported that the price range is actually $14-$16. DryShips plans to pay a 5% dividend and will be listed on the Nasdaq under the ticker symbol “DRYS.”
As is our policy, we will refrain from presenting our valuation of the company intil the transaction is complete, so the following facts have been taken directly from the offering document.
Sources & Uses of IPO Funds
As the accompanying chart illustrates, at the time of the offering DryShips will own five panamax and one capesize vessel. The company also has 11 more dry bulk carriers on subjects for an aggregate cost of $322 million.
The the company states it will use the estimated $111.5 million net proceeds of the offering together with $145 million borrowed under a new $185 million credit facility from Commerzbank and HSH, 1.35 million shares and up to $30 million under another credit facility that it plans to put together to finance the purchase. The company will have $7.0 million in cash immediately prior to the closing of this offering.
According to the document, DryShips will acquire the capesize drybulk carrier Netadola and five panamax drybulk carriers – Paragon, Samsara, Waikiki, Toro, and Iguana – from companies beneficially owned by Mr. Economou‘s sister for a total purchase price of $197.8 million with delivery by April 29, 2005. Netadola and the four Panamax drybulk carriers, Paragon, Samsara, Waikiki and Toro, will come in at the same purchase prices as those companies paid when they acquired the vessels from unaffiliated third parties ($164.3 million), and the panamax drybulk carrier Iguana will be acquired at its fair market value ($33.5 million). DryShips will buy the remaining five Identified Vessels directly from unaffiliated third parties at the aggregate purchase price of $119.0 million.
Of Dilution & Dividends
As the chart shows, new investors in DryShips will experience substantial dilution upon consummation of the offering. The reason for this is that, at October 31, 2004, as adjusted for subsequent events, DryShips had negative net tangible book value of $(4.7) million, or $(0.31) per share.
DryShips plans to issue a dividend to pre-offering shareholders of $69 million, comprised of $51.0 million of retained earnings as of October 31st and $18.0 million of earnings of the Initial Fleet for the period between November 1, 2004, and the date of this prospectus. The $69.0 million dividend has been accrued and reflected as a payable in the October 31, 2004 financial statements.
According to the prospectus, “After giving effect to the sale of 8,452,942 shares of common stock at a price of $17.00 per share, which is the mid-point of the expected range of $16.00 to $18.00 per share in this offering, and assuming that the underwriters’ over-allotment option is not exercised, the pro forma net tangible book value at October 31, 2004, would have been $130.1 million or $5.45 per share. This represents an immediate appreciation in net tangible book value of $5.76 per share to existing shareholders and an immediate dilution of net tangible book value of $11.55 per share to new investors.”
Strategy
DryShips intends to employ the vessels in the spot charter market, under period time charters and in drybulk carrier pools. The ships will be managed by Cardiff, which is under common control with DryShips. DryShips plans to grow its fleet through the acquisition of 10-20 year old capesize, panamax, handymax and handysize vessels.
The Official Guide To Marine Finance Providers
Shipping Index
