London law firm
, Lawrence Graham has advised the Latvian Shipping
Company on a complex multi-bank loan scheme
to finance its recently completed purchase of three 68,000 dwt product tankers. The $125 million deal, together with $90 million of associated acquisition finance
, involved separate loan agreements with banks in Hamburg, Stockholm, Riga and Rotterdam.
Duncan Bateson, senior shipping assistant lawyer, who managed the transaction, says, "LATCO wanted to take the opportunity to get to know a
number of banks through separate loans rather than obtain one syndicated loan. Negotiating three sets of loan documents added an extra challenge to quite a tight delivery schedule."
Latvian Shipping Company agreed
to pay $41.6 million for each of the sister vessels and Lawrence Graham advised them on three separate purchases and loan facilities of $30 million each. The purchases and financings involved coordinating legal advice from many jurisdictions around the world, including Germany, Sweden, Latvia, Netherlands, Greece, Malta
, Bermuda, Cyprus
, Caymans, Liberia
, with the vessels delivered in Japan and Brazil.
The Lawrence Graham team
consisted of shipping partner Mike Lax and finance partner Paul Walker, who were assisted by senior shipping assistant Duncan Bateson
and finance junior Raj Bahia.