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Saturday, November 18, 2017

Commerzbank News

Commerzbank Sells 18 Ships for $254.5mln

KKR & Co LP's Embarcadero Maritime unit will pay $254.5 million to buy 18 dry bulk and container ships from Commerzbank AG's Hanseatic Ship Asset Management GmbH, the companies said on Thursday. U.S. private equity firm KKR and London-based independent ship operator Borealis Maritime formed the Embarcadero Maritime joint venture in 2013 to invest in distressed shipping assets as several fleets struggled with overcapacity. The acquisition increases Borealis' fleet to 61 vessels, carrying containers, chemicals, and liquefied petroleum gas. To date, the joint venture has deployed more than $600 million to acquire assets. This acquisition includes 13 mid-size container vessels and 5 mid-size dry bulk vessels which Commerzbank took over from borrowers who defaulted on their loans.

DryShips Debt Agreement

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced that it has signed an agreement with Commerzbank and West LB on waiver terms for $70 million of our outstanding debt. This agreement is subject to customary documentation. George Economou, Chairman and Chief Executive Officer, commented: "We are pleased to have reached an agreement with Commerzbank and West LB. We are now left with two facilities with aggregate outstanding debt of $117.5 million, where waiver agreements are close to finalization." (www.dryships.com)  

FSL Appoints New Independent Director

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust (FSL Trust), has announced the appointment of Michael J. Oliver to its Board of Directors. Mr. Oliver has more than 40 years of international experience in the banking and financial services industry. He joined the London Branch of Commerzbank AG in 1986 and served as its Regional Board Member for Asia Pacific in Singapore from 2001 to 2005 before his retirement. As Regional CEO, he was responsible for Commerzbank branches in Hong Kong, Shanghai, Singapore and Tokyo as well as its merchant banking subsidiaries and corporate banking business in the Asia Pacific Region. Before joining Commerzbank, Mr.

Oil Edges Below $99 but Supply Risks in Focus

Oil traded slightly lower below $99 a barrel on Thursday, pressured by ample supply and concern over the weakening of demand growth in major consumer nations, as well as a rise in the U.S. dollar. Threats to supply as Libya's output fell and talk of OPEC production cuts limited the decline for global benchmark Brent, which hit a 26-month low on Monday after data showing a slowdown in China's factory output raised demand concerns. "At present, it is mainly news of (possible) lower OPEC production that is lending prices buoyancy," said Eugen Weinberg, analyst at Commerzbank in Frankfurt. Brent was down 19 cents at $98.78 by 1341 GMT. Prices have declined around 15 percent from a nine-month peak of $115.71 reached in June. U.S. crude fell 10 cents to $94.32 a barrel.

Commerzbank Slashes Ship Finance Portfolio

Pic: Commerzbank

The German lender Commerzbank is making money in tough market as it sheds another $1.2bn of ship loans. For the first time ever, Commerzbank's shipping portfolio stands at less than EUR 10 billion, according to the third quarter interim report, in which the German bank presents a profit of EUR 207 million. The Exposure at Default (EaD) was reduced over the second quarter of 2015 in the areas of Commercial Real Estate (CRE) and Ship Finance by EUR 5.1 billion. Therefore, the EaD…

Minoan Lines To Sign Loan

Ferry operator Minoan Lines will sign a $253.5 million syndicated loan jointly arranged by Citibank and National Bank of Greece to finance four highspeed ferries under construction, according to officials. Participating in the syndicated loan are Bayerische Hypo und Vereinsbank, Commercial Bank of Greece, Deutsche Schiffsbank, Landesbank Schleswig-Holstein Girozentrale, Alpha Credit Bank, BNP, Commerzbank, Meespierson, Schiffhypothekenbank zu Luebeck, Nedship Bank, ABN AMRO Bank and Efibanca.

Oversupply, Ebola Fears Drive Oil Below $86

Brent crude fell below $86 a barrel on Friday on news of strong supply from Middle Eastern OPEC producers and as a confirmed case of Ebola in New York spooked global equities markets. Iraq increased its oil supply in October, and Libya's production remained high, despite deep instability in both countries. Brent crude for December fell $1.02 a barrel to a low of $85.81 and was trading around $85.90 by 1205 GMT. U.S. December crude fell 85 cents to $81.24 a barrel. On Thursday Brent crude prices rose sharply on news of lower supply from Saudi Arabia…

KKR, Borealis Maritime JV acquires 9 container ships

Christoph Toepfer and Frederik Rye-Florentz of Borealis Maritime.

KKR and Borealis Maritime today announced the acquisition of 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. The company informed that their partnership with KKR has been well timed to deploy capital during what they believe will prove to be a low cycle in the shipping industry.

Box Ships Inc. Repays Commerzbank Loan

Box Ship's vessel: Photo courtesy of the owners

Greece-based Box Ships Inc. says it has repayed in full the outstanding amount under its loan agreement with Commerzbank AG dated July 29, 2011. The outstanding amount of the loan, as of July 21, 2014, amounted to $21.5 million and the parties agreed to the payment of $15.0 million plus accrued interest, in full and final settlement of the loan. The gain from this transaction is expected to be approximately $6.4 million and will be reflected in the third quarter of 2014. Mr. About Box Ships Inc. Box Ships Inc.

Global Shipping Meltdown Impacts European Banks

Photo:  International Chamber of Shipping

The collapsing maritime shipping industry is stoking another European banking headache, this time in economic powerhouse Germany, says a report in WSJ. While the Commerzbank, Germany’s second largest bank, reported earnings, warned that its losses on shipping loans could be as high as EUR600 million ($641 million) this year after nearly doubling last year to EUR559 million. Stephan Engels, Commerzbank’s chief financial officer (CFO) admitted that there was little immediate prospect of recovery.

Rickmers Pact with Commerzbank AG

Photo: Rickmers Maritime

Financially-strapped Rickmers Maritime has entered into a deed of consent with Commerzbank AG, Singapore Branch, reports Reuters. Rickmers Trust Management Pte. Ltd., the holding Trustee, has entered into a memorandum of agreement for sale of "India Rickmers" vessel securing CMB facility. The deed in relation to a settlement of senior loan facilities is extended by CMB to a subsidiary of trust. CMB has agreed to waive repayment of a material portion of remaining debt owed under CMB facility following partial prepayment.

Rickmers Sells Vessel to Survive

Photo: Rickmers Maritime Trust

Rickmers Maritime Trust has completed the sale of a vessel in connection with the settlement of senior loan facilities that German lender Commerzbank's Singapore branch extended to a unit of the trust. "The Trustee-Manager wishes to announce that the sale of the “India Rickmers” vessel has been completed. The Trustee-Manager will update its noteholders and unitholders if there are any further developments," Rickmers Trust Management Pte. Ltd., in its capacity as trustee-manager of Rickmers Maritime has announced in a statement.

NordLB forms JV Ship Loan Restructuring

German bank NordLB and two partners have formed a joint venture that will specialise in advising on the restructuring of non-performing ship loans, the state-backed lender said on Monday. The shipping industry has been stuck in a multi-year slump brought about by global economic weakness and overcapacity, weighing heavily on lenders with exposure to the sector, including NordLB, HSH, Commerzbank and state development bank KFW. The venture, Crystal Ocean Advisors, will offer restructuring services for troubled ship financing portfolios but will not take ownership of the assets. NordLB, shipper Offen Group and alternative assets specialist Caplantic will each own a third of the business, NordLB said.

Liberian Registry to Open German Doors

The Liberian International Ship & Corporate Registry (LISCR), the U.S.-based company, which operates the Liberian ship register, is to open a new representative office in Hamburg to provide local service to its strategic client base in Germany. Since Germany is one of the Liberian Registry's largest client bases in terms of both tonnage and numbers of ships, German owners make frequent use of the Liberian Registry's bareboat-charter registration provisions. Dr. Albrecht Gundermann, who has been chosen to head up LISCR's Hamburg office, is a member of the Hamburg Bar and was most recently a relationship manager in the ship finance department at Commerzbank AG in Hamburg. Dr. Gundermann will co-operate with Capt.

Dry Ships Inc. Offers Ocean Rig Shares

Athens, Greece – Dry Ships Inc., a global provider of marine transportation services for dry bulk and petroleum cargoes and off-shore contract drilling oil services, announced that it is offering 9,000,000 common shares of Ocean Rig UDW Inc. (“Ocean Rig”) which it owns in an underwritten public offering pursuant to Ocean Rig’s registration statement on Form F-1, filed with the Securities and Exchange Commission. Dry Ships also intends to grant the underwriters a 30-day option to purchase up to 1,350,000 additional common shares to cover over-allotments. Deutsche Bank Securities and Credit Suisse are acting as joint book-running managers for the offering…

Ocean Rig UDW Announces Pricing of Public Offering of Shares

Nicosia, Cyprus – Ocean Rig UDW Inc., a global provider of offshore deepwater drilling services, today announced that DryShips Inc.’s previously announced public offering of Ocean Rig common shares has been upsized to 10,000,000 common shares and priced at a price to the public of $16.25 per share. All net proceeds from the sale of the common shares will be received by DryShips as the selling shareholder. The offering is expected to close on April 17, 2012. DryShips has also granted the underwriters a 30-day option to purchase up to 1,500,000 additional common shares. Deutsche Bank Securities and Credit Suisse are acting as joint book-running managers for the offering…

Tognum Secures Long-term Financing

Tognum has recently concluded an agreement with a bank consortium for a revolving credit line of €300 million. The credit line has a term of five years. In addition to Commerzbank as the coordinator, seven other banks are involved. Tognum will redeem the consortium financing that was agreed during the IPO in 2007 accordingly in the next few days. In the last few months, Tognum also received loans totalling €200 million for research projects from the European Investment Bank (EIB). In addition, KfW IPEX-Bank will finance R&D activities amounting to €50 million. The contract was signed quite recently. “Tognum was able to secure the currently favourable interest rate for a long-term basic financing agreement,” explains Dieter Royal, CFO of Tognum AG.

Aker Solutions Appoints Head of Industry & Investor Relations

Aker Solutions says it has recruited David Phillips from HSBC Global Equity Research as head of industry and investor relations. He will start on June 17, 2014. Phillips, 43, served as global co-head of oil and gas research and managing director at HSBC since mid-2011 after joining the bank as an analyst in 2005. He earlier specialized as an analyst covering the chemicals sector for banks including Commerzbank, Morgan Stanley and Dresdner Kleinwort Benson. He will be based at Aker Solutions' London office and report to the company's chief financial officer. David Phillips has a BA in Chemistry from Oxford University and a PhD in Chemistry from Cambridge University. www.akersolutions.com  

KKR & Borealis Maritime Acquire 9 Containerships

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…

Crude Falls Below $114 as Iraq Supply Fears Ease

U.S. Secretary of State John Kerrylanded in Baghdad on Monday. (Photo: http://www.state.gov)

U.S. Brent crude dipped below $114 a barrel on Monday as worries about disruptions to Iraqi crude supplies began to look overdone given that exports have so far been unaffected by a Sunni Islamist insurgency. Brent was down 90 cents at $113.91 by 1336 GMT, off an intraday high of $115.66. U.S. crude for August delivery was down 54 cents at $106.29, after touching $107.45 earlier in the session. The July contract expired on Friday. Traders and analysts said that the rally had faltered as the market was becoming desensitised to the news out of Iraq.

Oil Extends Rally on Possible Producer Action

Oil prices were up about 1 percent on Friday, on track for their biggest weekly gains since May, after a short covering rally was triggered by comments from Saudi Arabia's oil minister in the previous session about possible action to help stabilize the market. The market, however, pared some gains after data showed U.S. oil drillers added rigs for a seventh straight week, the longest recovery in the rig count in over two years. They added 17 rigs, the biggest increase since December. Brent crude futures were 56 cents higher at $46.60 at barrel by 1:16 p.m. ET (1716 GMT) after touching a more than three-week high of $46.99 earlier. U.S. crude rose 66 cents to $44.15 after touching its highest level since July 22 at $44.57 per barrel.

Germany’s KfW to Make New Loans to Shipping Industry

KfW Group, Germany’s state-owned development lender, may make 1.5 billion Euros ($2 billion) of new shipping loans this year, even as rivals scale back operations in the crisis-hit industry. While that is less than new lending of 2 billion Euros in 2011, KfW IPEX-Bank plans to keep the size of its 13.5 billion- euro shipping portfolio “stable,” Christian K. Murach, head of transportation finance and a member of the lender’s management board, said in an interview in Frankfurt. Commerzbank AG (CBK), Germany’s second-largest lender, and Hamburg-based HSH Nordbank AG are scaling back their shipping portfolios amid new capital rules and to obtain approval for bailouts they received during the global financial crisis.

Saudis Cuts U.S. Price, Oil Sags to $82

Saudi Arabia cuts oil prices for U.S. customers; Brent and WTI touch respective 4-year and 3-year lows. Brent crude oil fell more than 3 percent to its lowest in over four years near $82 a barrel on Tuesday, after top oil exporter Saudi Arabia cut sales prices to the United States. Front-month Brent touched a low of $82.08, its weakest since October 2010, and was down $2.60 at $82.18 a barrel by 1305 GMT. U.S. light crude was down $2.40 at $76.38 a barrel. It touched a session low of $75.84, its weakest since October 2011, as its discount to Brent hovered around $6. Top global exporter Saudi Arabia increased its December official selling prices (OSPs), relative to benchmarks, to Asia and Europe on Monday, but lowered prices to the United States, a smaller export market.

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