Equipment Finance News

The global marine vessel market is projected to grow from $170.75 billion in 2021 to $188.57 billion in 2028 at a CAGR of 1.43%, according to research from Fortune Business Insights.From transportation vessels to workboats to marine construction ships, companies want to grow their business, stay current with new technologies, gain a competitive edge and be good stewards of our environment.Current marine market trends include adoption of alternative fuels, acquiring new construction vessels, retrofitting existing fleet, and determining ideal solutions for procuring these vessels.

Among transportation planners, “resilience”, describing the ability to bounce back from adversities, both economic and other, has become a top consideration as we increasingly must “expect the unexpected.” The U.S. waterway system, covering the network of inland rivers and coastwise waterways, has seen a mix of good and not so good. As the 2020-2021 pandemic moves toward winding down, a recovery from the dismal 2020 is underway, but activity on the rivers is uneven. Ken Eriksen…

Cox Powertrain, a British manufacturer of high-power diesel outboard engines, announced it has raised £9 million from existing shareholders and a further £3 million loan from HSBC UK Equipment Finance to allow the company to expand and ramp up production of the CXO300 outboard engine.Since 2007, Cox Powertrain has been continuously backed by private investors. Production of the CXO300 began in May 2020 and since then, the CXO300 has been shipped to more than 16 territories across the globe.The CXO300 is built at Cox Powertrain’s HQ in Shoreham…

The global maritime and transportation investment bank and industry advisory Seabury Maritime PFRA (SMPFRA), a division of Seabury Capital Group, announced the appointment of Fernando Lehrer as Executive Director, Head of Marine Services, and Nikos Petrakakos as Vice President, Head of Maritime Environmental Innovation.Lehrer and Petrakakos are joining the SMPFRA’s leadership to further advance the company’s strategy to provide an integrated platform to its clients that delivers an end-to-end solution for their maritime-oriented transportation investment banking and consultancy needs.“Fernando and Nikos are thought leaders and visionaries in applying innovative solutions and technology to the maritime industry…

A primer for navigating the ‘ups and downs’ of marine money for domestic stakeholders. Vessel financiers are resourceful and adaptable to changing markets. On the domestic side, financiers of Jones Act and “brown water” assets have continued to serve their customers through shifting shoals in both broader capital markets and in the marine markets – both known for their ups and downs. Marine finance can take many forms. In the broadest sense, funding can be done through loans, where the vessel is owned by the borrower…

Some positive market indicators could presage an investment revival in the U.S. Gulf of Mexico – and beyond. The good news, reported by Bloomberg, is that in the third quarter of 2016, the largest oil companies increased cash from operations by nearly $26 billion. This reflects a 67 percent increase from the previous quarter and more than twice the amount of the first quarter of 2016. Exxon Mobil, Royal Dutch Shell, Chevron, Total and BP indicated that the increase was due to lower spending, increased output and rising crude prices, although the numbers were still below last year’s numbers.

Three things: experience, experience, and … experience. It’s a very familiar scenario: And, if you are the CFO, controller, president or other financial manager of your company then you have been here before. Across your conference table sits a potential new lender. He/she is very genuine in their desire to lend you money on your boats. They sincerely want to be a valued and trusted advisor to you in all things vessel-finance related. But what may be lacking is an in depth knowledge of the commercial marine industry that can only come from time and exposure to the peculiarities of our industry. Actually, it’s easy to understand why this lender tells you they want to loan you money.

Harvey Gulf International Marine has sold its towing division to Signet Maritime Corporation. Through the deal, Signet will acquire eight offshore towing vessels (OTVs) ranging in size from 75 to 153 metric tons bollard pull. The sale will encompass all Harvey OTVs, spares, business and supplies. The transfer of OTV ownership was completed on May 15, 2014 in New Orleans, Louisiana with financing provided by Wells Fargo Equipment Finance as part of a $209 million syndicated financing facility.

Wells Fargo Equipment Finance, through its Energy and Marine and Capital Markets Groups, acting in the capacity of lead arranger, closed a $209 million financing facility today for Signet Maritime Corporation, a global marine transportation company based in Houston. The new facility refinances Signet’s existing bank debt and provides acquisition financing for the purchase of Harvey Gulf International Marine’s ocean towing vessel (OTV) fleet, which includes eight OTVs. Signet will also use proceeds of the financing facility to complete the construction and purchase of three newbuild escort ASD reverse tractor tugs, and the purchase of three existing bareboat chartered vessels.

GE Capital, Corporate Finance has announced that it provided US$22.5-million in equipment financing to Laborde Marine. The funds refinance existing debt used to purchase five new crew boats. Founded in 1995 and headquartered in New Orleans, LA, Laborde Marine is a privately held supplier that provides marine support to the offshore oil and gas industry internationally. They operate more than 20 vessels in the U.S. Gulf of Mexico and have two international offices in Brazil. “GE Capital delivered the financing we need to fund the ongoing expansion of our fleet and customer base,” said Cliffe Laborde, managing member of Laborde Marine.

Marine-Finance.Com announced that Joe Pitch has signed on as Managing Director for Marine-Finance.Com LLC. Pitch joins former CitiCapital Commercial Marine Finance colleague Robert Girard, SVP, who, along with CEO Richard Paine, constituted the core of the CitiBank- affiliated marine group. Pitch is a 30-year veteran of the equipment leasing/finance industry he has financed more than $1b in equipment. Based in Dallas, Texas, Pitch is a graduate of Seton Hall University with a Bachelor of Business Administration with a concentration in Finance. He is a past member of the American Waterway Operators (AWO), the Offshore Marine Services Association (OMSA) and an affiliate member of the Passenger Vessel Association (PVA).

Two significant new financial management tools were recently unveiled by the Federal government in one highly visible piece of legislation, and each can significantly change the way that you do business. Both have the promise to stimulate business growth while adding to a company’s bottom line. Each has both friends and foes in the commercial marine industry. The Economic Stimulus Act of 2008 was signed into law on February 13, 2008. It provides, among other economic stimuli…

EPA has unveiled a new plan of action for working with public port authorities and other interested groups to reduce the environmental impacts of moving goods through ports. The "Vision, , and Strategy for Sustainable Ports" recognizes the steady growth in global maritime commerce and the critical role American ports and related transportation and supply chain partners play in managing the environmental impacts of moving goods across the country. Ports are vital to the economy. Ocean-going ships move more than 99 percent of overseas trade (by weight). The top ten U.S. ports moved a combined total of 23 million cargo containers in 2006.

By James W. In recent years maximizing budget dollars has become an increasing concern for many businesses. Fortunately marine assets have long, useful lives, but the debt required to finance their acquisition often creates a strain on the operator's balance sheet and cash flow. According to the Equipment Leasing Association (ELA), 8 out of 10 businesses in the United States lease some kind of equipment. However, fewer know that leasing, accomplished through a bare-boat charter, is also a smart business decision for obtaining vessels. Because marine assets have long lives, lease payments can be relatively low. Companies can use these cost-savings to improve day-to-day cash flow or to gain a competitive edge by passing the cost-savings along to customers.

Cincinnati-based Midland Enterprises, which operates a fleet of barges, towboats and tugboats, has leased more than $18 million in new equipment from Firstar Bank during this past year. Midland worked with Firstar's Equipment Finance group to replace and expand its fleet of barges, which transport bulk commodities, a major portion of which is coal, principally on the Ohio and Mississippi Rivers and the Gulf Intracoastal Waterways. Bob Faillo, president of Midland Enterprises, said, "I've admired Firstar's persistence in getting our business. Wayne Shircliff, Firstar Bank's executive vice president and regional chairman, said, "Firstar is pleased to be partnering with such a fine company as Midland Enterprises and its subsidiary, the Ohio River Company. Our recent merger with U.S.

Shipowners are known for having distinct differences of opinion, but the one thing that all agree on is the importance of having access to capital. In an industry in which assets are generally big-ticket items and operating margins can be thin, access to proper financing serves the dual purposes of fleet growing the generation of healthy operating returns. Most shipowners would also agree that financing for maritime assets generally isn't easy to find. There are various reasons for this. One reason is that few lenders focus exclusively on marine finance and a result most lending institutions are not familiar enough with marine assets to feel comfortable financing them.

Cummins Inc. and CitiCapital have reached an agreement to promote a co-sponsored marine finance program. Under the agreement customers who purchase Cummins engines for various commercial vessels will receive exclusive finance products provided by CitiCapital. This agreement demonstrates the cooperative efforts of both companies by bringing together the premier manufacturer of marine engines and the world's largest financial services conglomerate. The agreement will initially cover the U.S. "Financing solutions are critical with any marine projects, whether it's a new vessel or a major repower. Cummins Marine customers deserve the very best in products and services.