McDermott Acquires New Pipelay and Construction Vessel
McDermott International, Inc. announced it has acquired the newly built pipelay and construction vessel Amazon to better position the company for ultradeepwater and SURF projects. McDermott plans to upgrade the vessel to address the ultradeepwater market with a state-of-the-art J-lay system outfitted with the latest vessel technology. In the near term, the company plans to make minor capital expenditure investments to bring the vessel up to company standards. As McDermott finalizes its upgrade plans, the company plans to use the vessel on existing construction and pipelay projects.
Korea Shipping to Buy Up to 10 HMM Vessels
The state-backed ship financing company Korea Shipping is looking to buy up to ten container vessels operated by Hyundai Merchant Marine (HMM), and lease them back to the shipping firm, says a report in Yonhap. “Korea Shipping will provide some 720 billion won (USD 633.7 million) to Hyundai Merchant this month or next month to shore up its capital base,” the report quoted Sohn Byung-doo, a standing member of the Financial Services Commission, the country’s financial regulator, as saying. Funds will be transferred to HMM through the purchase of stocks and debts.
Gruenhagen Named CFO at MV WERFTEN
Shipbuilding group MV WERFTEN said it has appointed Richard Gruenhagen as Managing Director of Finance and Administration to reinforce the group's Management Board as new CFO effective February 1. Gruenhagen graduated from Indiana University, is a Certified Public Accountant (USA), has many years of experience as Executive Financial Management Professional, broad business experience as CFO, Director of Finance, Chief Accountant and as Head FP&A & Controlling in large global companies and startups, incl. ABB and GE. Most recently, Gruenhagen worked as CFO at DHL Logistics in Switzerland.
Norwegian Authority Objects Eimskip's Acquisition of Nor Lines
The Norwegian Competition Authority has today given a notice of an objection to Eimskip’s acquisition of the Norwegian shipping and logistics company Nor Lines AS. The notice reflects the Authority's preliminary conclusion, and Eimskip has 15 business days to present counterarguments. A final decision will be made by the Authority after another 15 business days. Eimskip is evaluating next steps with its legal advisors. In last November, Eimskip has entered into an agreement to acquire the Norwegian shipping and logistics company Nor Lines.
Global Trade Set To Benefit From ICC Report
Released yesterday, the International Chamber of Commerce (ICC) Trade Register Report 2014 provides empirical evidence that, in all forms, trade and export finance is a low risk bank financing technique – further supporting ICC’s advocacy of trade finance as a strong contribution to economic recovery and growth. This evidence has the potential to alter attitudes towards trade finance, and therefore contribute to the growth of both global trade and the global economy. Based on data contributed by the major global commercial banks and reflecting more than 4.5 million transactions totalling an exposure in excess of US$2.4 trillion, the ICC Trade Register Report 2014 (“the Trade Register”) empirically demonstrates that trade finance is lower risk than many other types of financing and assets.
SMM Hamburg Ready for a New Beginning
At the SMM Ship Finance Forum just ahead of SMM, the leading international maritime trade fair hamburg, experts will discuss the potential and prospects for new ship financing models. In spite of low newbuilding prices, the total number of ship orders is declining around the world. Financing difficulties are part of the problem, and new concepts are in demand to revitalise the market. "In ship finance we have to address two separate issues: On the one hand, we need to put the fleet in service on a more solid financial basis. After a five-year double crisis – one affecting the financial, the other the shipping markets – that may be a tall order. On the other hand we need to finance new tonnage to be commissioned over the next few years.
Financing Structure for Canal Expansion Program
Panamanian President Martín Torrijos announced the final financing structure for the historic Panama Canal Expansion Program. Five major multilateral agencies from Europe, Asia and offered to finance the Canal expansion project. The Panama Canal Authority, after months of extensive negotiations, has accepted the banks’ offers. The $2.3 billion financing package will cover a portion of the $5.25 billion total cost of the project. Financing agencies are the European Investment Bank (EIB)…
Mercury Marine Launches Repower Financing
Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers. The Mercury Repower Finance program is funded by Medallion Bank, a marine industry leader that specializes in accepting buyers with a wide range of credit histories. Program administration is handled by Brunswick Financial Services, a fully owned subsidiary of Brunswick Corporation, the worldwide marine manufacturing leader.
Signet Closes $209m 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.
Golar Acquires Financing for GoFLNG
Golar LNG Limited announced today that it has received an underwritten financing commitment for its first GoFLNG project from CSSC (Hong Kong) Shipping Co. Ltd ("CSSCL") in relation to a conversion financing and sale and leaseback transaction for the GoFLNG Hilli. The financing structure will fund up to 80% of the project cost and will be split into two phases. The first phase enables Golar to drawdown up to $700m from the facility to fund the ongoing conversion cost, once Golar…
Golar Receives Financing Commitment for GoFLNG Hilli
Golar LNG Limited has received an underwritten financing commitment for its first GoFLNG project from CSSC (Hong Kong) Shipping Co. Ltd (CSSCL) in relation to a conversion financing and sale and leaseback transaction for the GoFLNG Hilli, the company announced today. The financing structure will fund up to 80 percent of the project cost and will be split into two phases. The first phase enables Golar to drawdown up to $700 million from the facility to fund the ongoing conversion cost, once Golar has spent $400 million of the estimated $1.2 billion conversion cost and the tolling contract with Perenco and SNH have been ratified by the Cameroon government, expected during the third quarter of 2015.
SMM Finance Forum: ‘Banks are Lending Again’
For Dr. Carsten Wiebers, Global Head of Maritime Industries at KfW IPEX-Bank, and member of the SMM Advisory Board, innovative financing solutions are key to Europe's continued international competitiveness in maritime high technology. On September 8, 2014, or SMM Finance Day, the SMM Ship Finance Forum will be held for the second time in conjunction with international maritime trade fair SMM. The forum, which will answer questions revolving around financing solutions for global shipbuilding and shipping, will be subdivided into three overarching topics.
ICC Releases its Latest Trade Finance Survey
According to this year's Global Survey - which received 357 responses from 109 countries worldwide - 61% of respondents reported a global shortage of trade finance. Only 52% of respondents reported an increase in trade finance activity, compared to 63% in 2015 and 80% in 2012. Furthermore, the perceived shortfall came predominantly from regional and global banks - 78% and 56% respectively, compared to 41% of national banks. ICC Secretary General John Danilovich said: " We must emphasise the importance of trade finance.
Laborde Marine Get Necessary Finance for Expansion
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.
Island Offshore Halts Debt Amortisation Payments
Offshore service vessel owner Island Offshore Shipholding said on Tuesday that it had initiated discussions with its finance providers to address the group's long term financing. Has decided with effect from Nov.
Front Vanguard Contract Terminated
Frontline Ltd. ("Frontline" or the "Company") has agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter for the 1998 built VLCC Front Vanguard. Ship Finance has simultaneously sold the vessel to an unrelated third party. We expect the vessel to cease operating as a conventional tanker and the charter with Ship Finance is expected to terminate in the second quarter of 2016. Frontline has agreed a compensation payment to Ship Finance of approximately $0.4 million for the termination of the current charter.
Norwegian Orders Four Ships from Fincantieri
Norwegian Cruise Line Holdings Ltd. said it has reached an agreement with Fincantieri S.p.A. to construct the next generation of ships for its Norwegian Cruise Line brand, ordering four 140,000 gross ton ships for delivery in 2022, 2023, 2024 and 2025, with an option for two additional ships to be delivered in 2026 and 2027. The four ships, priced at approximately €800 million per unit, will each accommodate approximately 3,300 guests. The new vessels will build upon the brand's most recent Breakaway-Plus Class ships built at Meyer Werft. A priority of the prototype design is energy efficiency, with the aim of optimizing fuel consumption and reducing the impact on the environment.
ADNL, NPCC Ink $110m Vessel Deal
The Abu Dhabi National Leasing Company (ADNL) has signed a $110m deal with the National Petroleum Construction Company (NPCC) for financing the construction and lease of its new vessel. The proposed financing structure is a two-plus-five year finance lease to partially finance one new Derrick Lay Ship DLS-4200 for NPCC. (Source: Khaleej Times)
Utile Maritime Legislation Enacted in Marshall Islands
'Financing Charters' may now be treated as 'Preferred Mortgages' — The Republic of the Marshall Islands passes Maritime Amendment Act (No. 1), 2013. The Republic of the Marshall Islands’ Nitijela has passed the Maritime Amendment Act (No. 1), 2013 – a legislative initiative of key significance to the international marine finance community. The first-of-its-kind legislation permits a “financing charter” to be treated as a preferred mortgage in favor of the registered owner of a Marshall Islands vessel, which allows a charter party to make precautionary security filings to protect and perfect its interest in a chartered vessel. This solves…
As Banks Step Down, Equipment Finance Companies Step Up
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.
OSG Appoints New VP of Corporate Finance
Overseas Shipholding Group, Inc. announced that Henry Flinter was appointed Vice President, Corporate Finance of OSG Ship Management, Inc., a newly created position reporting to Myles Itkin, Chief Financial Officer. Flinter will have oversight of treasury, corporate finance and capital market transactions and has nearly 20 years' experience in senior finance and accounting positions. He joined OSG in 2002 as Assistant Vice President, Accounting and in January 2005 was promoted to Vice President, Accounting.
VT Group names Harrison Finance Director
VT Group has appointed Philip Harrison as its new finance director with effect from November 19. Harrison joins VT Group from Hewlett-Packard where he has been vice president finance for Europe, Middle East and Africa since 2002. The shipbuilding and support services company said that group commercial director Chris Cundy, who was the acting finance director, will now focus fully on PFI, business development and the group's shipbuilding joint venture. Source: Thomson
R&B Falcon Completes $270 Million Project Financing
Deepwater Drilling II L.L.C., a limited liability company owned by affiliates of R&B Falcon Corporation and Conoco, has concluded a $270 million project financing. The project financing proceeds will be used to finance the construction cost of ultra deepwater drillship, Deepwater Frontier, which was delivered from Samsung Shipyard in South Korea in March 1999. The 10,000-ft. water depth capable Frotnier has already drilled one well in New Zealand and is currently mobilizing to another location offshore West Africa. A Bank of America affiliate, BA Leasing & Capital Corporation, was the agent for the transaction. Paul B. Loyd, Jr., R&B Falcon's chairman and CEO…