Banking Crisis? Not an Issue for BW Group or NOL

2012 is broadly expected to be challenging for both shipping lenders and borrowers. As long as the Euro debt crisis persists and continues to worsen, capital will become increasing scarce. Even shipping companies at the top of the pyramid are busy strengthening their balance sheets and making sure that they have adequate funds to meet capital expenditure requirements in the coming years.

One of the world’s leading maritime companies BW Group has successfully completed a USD 1.5 billion seven-year revolver in mid-November. According to market sources, the proceeds will be used for refinancing and the participants are largely from the previous revolving facility. Pricing is said to be “slightly higher” than the previous revolving facility, although it remains highly competitive in today’s tight market conditions. Continue Reading

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.

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It’s Cold Outside, But the Money Is Hot – A Walk Around Another Financial Center

It is a very short walk between Aker Brygge, Haakon VII’s Gate and Dronning Mauds Gate. Yet the compactness of the area should not dissuade you of the importance of this area. With one noticeable exception, Nordea Bank, it is the center of ship finance in Norway and Nordea has solved the problem of being an outsider by establishing unofficial satellite offices in the Theatercafeen and Dagligstuen depending on the time of day. By definition, Oslo is the center of the Norwegian bond market which lately seems to be single handedly financing the offshore business, but just as importantly it is home to  two major Western shipping banks, the previously mentioned Nordea Bank and DnB NOR who more often than not lead the syndicated loan league tables, in addition to having leading capital market roles.

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Nordea, DnB, ING Arrange $3 billion Facility for BW Group

Jumbo loans have officially returned with the announcement by BW Group that it has executed a 5-year $3 billion facility with a consortium of 11 banks, which committed a total sum of $5 billion against BW Group’s $3 billion requirement. Nordea, DnB and ING acted as bookrunners of the facility, and they were joined as mandat­ed lead arrangers and underwriters by Svenska Handelsbanken, Swedbank, HSH Nordbank, Danske Bank, Fortis Singapore, OCBC, Deutsche Bank and HSBC.