Articles

CSL Group (“CSL”) and Peak Group (“Peak”), have teamed-up to launch the Peak CSL Group (“Peak CSL”). The partnership follows an acquisition by CSL of 50% of Peak Group, who was advised by KPMG Norway on the sell side as well as Simonsen Vogt Wiig as legal counsel. Companies: CSL Group, Peak Group, Peak CSL Group, KPMG Norway, Simonsen Vogt Wiig

This week, the Marine Money team caught up with our friend Adrian Economakis to learn more about his newest venture. As many of you know, Adrian was a regular feature on the Marine Money circuit for VesselsValue and really built that business to what it was before the sale to Veson. Companies: VesselsValue, Veson, Intelligent Seas Group

Dealmaking in the Jones Act space is hotter than ever due to a combination of increased infrastructure spending, geopolitical tension, nearshoring, and an increased emphasis on the importance of energy security. Companies: Centerline Logistics, Beal Bank, Maritime Partners, ATLAS, Saltchuk, OSG, Morgan Stanley Infrastructures Partners, Crowley, Pasha Group, Pasha Hawaii, Horizon Line, Kirkland & Ellis LLP, Nixon Peabody LLP, Bank of America Securities

In recent weeks, we have covered a lot of bonds as issuances seem to be pouring out of the public markets, certainly keeping bankers busy! Companies: PS Marine Holdings, Universal Energy Resources, Petroserv Marine, Floatel International, DNB Markets, Clarksons Securities AS

It would be fair to say that 2023 was also characterized by anticipation of decarbonization regulations soon to come, leading to all sorts of creative sustainable financing solutions.

Danaos Corporation (“Danaos”), advised by Watson Farley & Williams, announced $450m in post-delivery senior secured financing from four banks: Citibank, BNP Paribas, KfW, and Alpha Bank, who were advised by Norton Rose Fulbright, for eight newbuild container vessels, bringing their orderbook to 14, more than doubling it. Companies: Danaos Corporation, Watson Farley & Williams, Citibank, BNP Paribas, KfW, Alpha Bank, Norton Rose Fulbright

Höegh Autoliners has entered into $720 million of new long-term financing arrangements. Use of Proceeds includes: (1) the refinancing of all existing bank debt, (2) new financing for four Aurora-class newbuilds, and (3) acquisition financing of two more vessels the Höegh Jeddah and Jacksonville. Companies: Höegh Autoliners, Citibank, BNP Paribas, ING Bank, Crédit Agricole, DNB, Danske Bank, SEB, Nordea

This past December saw the announcement of a transformational merger, between two U.S. listed dry bulk shipping companies, Eagle Bulk and Star Bulk. Companies: Eagle Bulk, Star Bulk, Cravath, Swaine & Moore LLP, Star Bulk, Houlihan Lokey, Akin Gump Strauss Hauer & Feld LLP, Hogan Lovells US LLP

Despite the fact that Taylor Maritime owns around 80% of its shares, Grindrod Shipping continues to make regulatory filings. In a recent 6-K filing, Grindrod reported that on March 8th it closed a $113 million deal with Nordea Bank ABP (facility and security agent) and Skandinaviska Enskilda Banken AB (security agent) to refinance a loan made by Crédit Agricole Corporate and Investment Bank and Hamburg Commercial Bank AG in February 2020. Companies: Taylor Maritime, Grindrod Shipping, Nordea Bank ABP, Skandinaviska Enskilda Banken AB, Crédit Agricole Corporate and Investment Bank, Hamburg Commercial Bank AG

On March 7th, Tidewater Inc. (NYSE: TDW) announced a definitive agreement to purchase 37 of Solstad Offshore ASA’s platform supply vessels for $577 million.

The Danaos deal inspired us to take a look at some of the other newbuilding financings that have been concluded so far in 2024. Companies: MOL, COSCO, Xiamen Financial Leasing, Seaspan (Atlas), Hyundai Glovis

Oslo-listed driller Dolphin Drilling has successfully raised approximately $40 million via a private placement of shares managed by Arctic Securities AS, Clarksons Securities AS, and DNB Markets. Companies: Dolphin Drilling, Arctic Securities AS, Clarksons Securities AS, DNB Markets, Strategic Value Partners, S.D. Standard ETC Plc, B.O. Steen Shipping AS, Surfside Holding AS, DNB, Pareto, Fearnley, MAP

The bond issuance frenzy out of Oslo continues with this most recent offering completed by SFL Corporation with the help of joint Bookrunners Arctic Securities and DNB Markets, and Co-Managers Fearnley Securities, Pareto Securities, SEB, and SMBC Nikko. Companies: SFL Corporation, Arctic Securities, DNB Markets, Fearnley Securities, Pareto Securities, SEB, SMBC Nikko, Ocean Yield

As you can see from the table below, equity continues flowing into the global shipping industry from so-called Limited Partners, or “LPs,” which are largely comprised of insurance companies and pension funds in the U.S. and Europe.

Among M&A transactions in the shipping industry, take-private acquisitions have gained significant traction.

We are always excited to see a maritime company access the capital markets for the first time. Such was the case this week when FPSO owner and operator Yinson Production, part of the dynamic and ambitious Yinson Group, successfully placed $500m in senior secured bonds in the Nordic high-yield bond market this week. Companies: Yinson Production, Yinson Group, DNB Markets, Pareto Securities, ABG Sundal Collier, Moody’s, Standard & Poor’s, Fitch

It was eight years of misery for the offshore market. The downturn that started in 2010 left offshore companies unable to take delivery of new vessels and rigs. It also resulted in loan impairments, equity wipeouts, and widespread restructuring. Companies: Havila Shipping, Volstad Maritime, Sæviking AS, Havila Holding, Ola Volstad Holding, Arctic Securities, Simonsen Vogt Wiig

This week we received Dealogic’s “Marine Finance Rankings Syndicated Loans – First Quarter 2024,” which after having just recently reviewed a comparison of the 4th quarter results, displayed varying levels of support to the conclusions made in that piece.

A truly cross-border newbuild financing transaction was consummated for one of the largest asset managers globally on four dual fuel ready containerships.

With valuations hovering stubbornly below net asset value, it’s been almost impossible for new dry bulk owners to reach the U.S. public equity markets in recent years, but Himalaya made it happen in 2023.