KKR & Borealis Maritime Acquire 9 Containerships

By George Backwell
Thursday, August 28, 2014
Containerships sunrise: File photo

KKR and Borealis Maritime say they have acquired a portfolio of nine feeder container vessels in a sale process coordinated by Commerzbank. The vessels were previously owned by a number of German KG funds and were originally financed by Commerzbank. Financial details of the transaction were not disclosed.

In 2013, KKR and Borealis Maritime formed a joint venture named Embarcadero Maritime to invest in distressed shipping assets. Since its formation and including the most recent acquisition, Embarcadero Maritime has acquired 27 vessels in 9 separate transactions and its current fleet includes a mix of chemical tankers, feeder container vessels and small LPG vessels. To date, KKR and Borealis have deployed over $100 million into vessel acquisitions and continue to pursue additional transactions opportunistically.

Christoph Toepfer, CEO of Borealis Maritime, stated: "Our partnership with KKR has been well timed to deploy capital during what we believe will prove to be a low cycle in the shipping industry. We have been able to grow our fleet significantly and together with KKR are offering lenders feasible solutions to prior lending engagements."

Many sectors of the shipping industry continue to suffer from overcapacity and low vessel earnings, including the container segment. Absent a short-lived recovery in 2010, charter rates for feeder container vessels are in their sixth year of barely covering operating costs, with limited ability to pay interest or amortize debt. Coupled with large declines in prices for second-hand container vessels over this period, many original asset owners are under significant pressure today.

"We are pleased to acquire these nine vessels with Borealis," said Brian Dillard, a member of KKR's Special Situations team. Dillard continued, "We are actively looking for attractive investments in shipping, particularly where we can provide a solution for lenders looking to reduce their exposure
KKR is funding the acquisition through certain of its managed funds and accounts and its special situations fund, which, among other things, offers long-term capital to support the long-dated nature of shipping assets.

(KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.
Borealis Maritime is a privately owned and independent London maritime shipping company founded in 2010. It provides a comprehensive range of integrated services associated with the management of maritime assets, both for private and institutional investors).

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Huisman Opens Production Facility in Brazil

Huisman officially opened its new production facility in Navegantes, Santa Catarina state, in the south of Brazil on Thursday, April 16. The facility is used for

SCH Services Anthem of the Seas in Southampton

Terminal operators Southampton Cargo Handling (SCH) are utilizing their considerable experience in handling cruise vessels to service the biggest cruise ship to call in the port of Southampton.

First SCR IMO Tier III Approval in Principle Awarded

MAN Diesel & Turbo reaches IMO Tier III milestone for entire four-stroke engine portfolio. At an awards ceremony held on April 15, 2015 at the PrimeServ Academy in Shanghai,

Contracts

Huisman Opens Production Facility in Brazil

Huisman officially opened its new production facility in Navegantes, Santa Catarina state, in the south of Brazil on Thursday, April 16. The facility is used for

MacArtney Connectivity for Navy Bow Sonar Systems

MacArtney delivers connectivity for Thales FREMM frigate bow sonar systems    MacArtney Underwater Technology supplied SubConn underwater connectivity solutions

Eastern Delivers 60th Towboat to Florida Marine

Eastern Shipbuilding Group, Inc. delivered the M/V Bill Seymour (Hull 190), the 60th 90’ Inland Towboat to Florida Marine Transporters, Inc. of Mandeville, La.,

Ship Sales

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

Star Bulk Adds Jennifer

Star Bulk Carriers Corp has added M/V Star Jennifer (ex "Ore Hansa), a 82,290 dwt Kamsarmax bulk carrier, built in 2006, to its fleet.   The Company completed

Finance

US Ports Boost Economic Impacts

Since last nationwide analysis in 2007, U.S. seaport contributions to economy up dramatically    Lancaster, Pa.-based Martin Associates, a provider of economic

Baltic Index Rises as Demand for Large Vessels Increases

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday primarily because of higher rates for the large vessel segments.

Cheaper Fuel to Boost Container Shipping

Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container

Container Ships

ABB Improves Efficiency of World’s Largest Ships

ABB Turbocharging helps improve engine performance on record- breaking containerships   ABB has designed turbochargers powering the largest ships in the world.

Cheaper Fuel to Boost Container Shipping

Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container

ABB Turbochargers for Largest Boxships

ABB has designed turbochargers powering the largest ships in the world. First came the China Shipping Container Lines (CSCL) Globe with capacity of 19,100 TEU

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1602 sec (6 req/sec)