Marine Link
Friday, August 17, 2018

Finance Leases News

Scorpio Tankers to Sell, Leaseback Five Product Tankers

Photo: Scorpio Tankers

Scorpio Tankers announced that it has agreed to sell and leaseback three MR product tankers (STI Ville, STI Fontvieille and STI Brooklyn) and two LR2 product tankers (STI Rose and STI Rambla) to AVIC International Leasing Co., Ltd. Upon completion, the Company’s liquidity is expected to increase by $42 million in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the Company’s new financing initiatives that were announced on April 25, 2018. As part of the agreements, the Company will bareboat charter-in the vessels for a period of eight years.

Maritime Faces New Lease Accounting Standards

Michael Simms (Photo: Moore Stephens)

A new international accounting standard dealing with leases could have major implications for companies in the shipping and offshore maritime sectors, and particularly for time charterers, according to international accountant and shipping adviser Moore Stephens. The new standard, IFRS 16, is effective for periods beginning on or after January 1, 2019, although early adoption is allowed. It covers all leases, whether the company acts as a lessor or a lessee. Michael Simms, a partner in the shipping and transport group at Moore Stephens…

Scorpio Tankers Sells, Leaseback Four Tankers

Photo: Scorpio Tankers Inc.

Scorpio Tankers Inc announced that it has agreed to sell and leaseback two MR product tankers (STI Gramercy and STI Queens) and two LR2 product tankers (STI Oxford and STI Selatar) in two separate transactions to an international financial institution. Upon completion, the Company’s liquidity is expected to increase by $42 million in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the Company’s new financing initiatives that were announced on April 25, 2018.

Singapore Budget Sops for Maritime

Image: Singapore’s Maritime & Port Authority

With a focus on improving maritime business sectors through a series of incentives to raise productivity, innovation, and internationalization the government of Singapore extended a number of its maritime incentives in its 2015 budget. "I will extend the Maritime Sector Incentive (MSI) which promotes the growth of Singapore as an International Maritime Centre," said Tharman Shanmugaratnam Deputy Prime Minister and Finance Minister in his 2015 budget speech on Monday. Shanmugaratnam…

Scorpio Tankers Sells, Leaseback Six MR Product Tankers

Photo: Scorpio Tankers

Scorpio Tankers announced that it has agreed to sell and leaseback six MR product tankers (STI Opera, STI Virtus, STI Venere, STI Aqua, STI Dama, and STI Regina) to China Huarong Shipping Financial Leasing Co., Ltd. Upon completion, the Company’s liquidity is expected to increase by $48 million in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the Company’s new financing initiatives that were announced on April 25, 2018. As part of the agreements, the Company will bareboat charter-in the vessels for a period of eight years.

Scorpio Tankers Sells, Leaseback Six Tankers

Photo: Scorpio Tankers

Scorpio Tankers  announced  that it has agreed to sell and leaseback six MR product tankers (STI Battery, STI Milwaukee, STI Tribeca, STI Bronx, STI Manhattan, and STI Seneca) to CMB Financial Leasing. Upon completion, the Company’s liquidity is expected to increase by $52 million in aggregate after the repayment of outstanding debt. These lease financing arrangements are part of the Company’s new financing initiatives that were announced on April 25, 2018. As part of the agreements, the Company will bareboat charter-in the vessels for a period of eight years.

Ince Promotes Three New Partners

Sami Chowdhury

International law firm Ince & Co. announced the imminent promotion of three lawyers to the partnership. Rania Tadros – Rania has experience in commercial arbitration and litigation within the shipping and energy and offshore markets. She has had experience handling a range of matters for clients in the offshore support and oilfield services sector. Rania has also advised on a number of shipping disputes concerning the Middle East and has a particular focus on construction disputes and claims relating to refund guarantees. Rania will relocate from London to Dubai this summer.

US Lease Accounting Standard Updated

Michael Simms (Photo: Moore Stephens)

Shipping and offshore maritime sectors must be alert to implications of new U.S. The Financial Accounting Standards Board (FASB) in the United States has issued a lease accounting standard update following the release in January 2016 of an International Financial Reporting Standard (IFRS) dealing with the same subject. Although it had been expected that the FASB and IFRS standards would be identical, there are instead now two standards which, although similar in many respects, contain significant differences.

Tonnage Tax Regime Tightens

The Inland Revenue issued new anti-avoidance legislation in December, which will have a significant impact on tonnage tax companies that lease vessels. "These changes will particularly affect the financing of expensive ships such as gas carriers or large cruise ships, as capital allowances will be restricted where a ship costs more than £40 million. regime. to a UK company which has not made a tonnage tax election. companies. capital allowances. being finance leases. * restricted where a ship costs more than £40 million. * denied in the case of certain sale and leasebacks. exchange for a lump sum payment. does not exceed three years. particularly for expensive ships. other tonnage tax regimes, has been reduced. companies looking to raise finance by using sale and leaseback arrangements.

First Ship Lease Closes $100m Mezzanine Financing

First Ship Lease Ltd., a commercial finance company focused on diverse shipping assets, today announced the successful completion of a $100 million mezzanine financing facility. The mezzanine facility, combined with previous equity financing and senior debt to be raised on a transactional basis, allows First Ship Lease to provide in excess of $500 million in operating and finance leases to shipping and industrial companies that meet its credit criteria. The mezzanine financing was fully underwritten by BTM Capital Corporation of Boston, a subsidiary of Japan's premier bank, The Bank of Tokyo-Mitsubishi, Ltd.; Germany-based HSH Nordbank AG, the world's largest ship mortgage lender; and Vereins -und Westbank Group, a subsidiary of Germany's second-largest bank, HypoVereinsbank.

Scorpio Tankers Signs Sale-Leaseback with Bocomm

Photo: Scorpio Tankers

Scorpio Tankers has agreed to sell and leaseback five 2012 built MR product tankers (STI Amber, STI Topaz, STI Ruby, STI Garnet, and STI Onyx) to Bank of Communications Financial Leasing  (Bocomm Leasing). As of today, three of the five transactions have been completed, which has increased the Company’s liquidity by approximately $21 million in aggregate after the repayment of the outstanding debt. The sales price for each vessel is $27.5 million, and the Company will bareboat charter-in the vessels for a period of seven years at $9,025 per day per vessel.

Navios 3Q, 9 Mo. Report

Navios Maritime Holdings Inc. (NYSE:NM) , a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2008. "We believe that Navios' flexible business model and conservative strategy will benefit us during this difficult period in the drybulk market," stated Angeliki Frangou Chairman and CEO of Navios Holdings. "Consistent with past practices, we entered into long-term charters-out and, as a result, our core fleet is 82% covered for 2009 and 59% covered for 2010. Ms. Frangou continued, "We are paying dividends for the third quarter of $0.09 per share. We remain committed to returning capital to shareholders while allowing for future growth.

IASB Discussion Paper

International accountant and shipping consultant Moore Stephens has reminded the shipping industry that it has until July 17 this year to respond to an International Accounting Standards Board (IASB) discussion paper on the accounting treatment of leases. “Although it is likely to be at least two years before any new standard comes into effect, the big decisions on what will constitute that standard will be made now,” says Richard Greiner, a partner with the Moore Stephens shipping group. The discussion paper, which deals primarily with leases from the perspective of the lessee, has been prompted by the IASB view that operating leases, using the existing definition, give rise to assets and liabilities which are not currently reflected in financial statements.

Scorpio Tankers Ties-up for Debt Refinancing

Photo: Scorpio Tankers

Scorpio Tankers announced that, following from the announcement of new financing initiatives on April 25, 2018, the Company has received commitments from four leading European financial institutions for three separate loan facilities of up to $195.9 million in aggregate. It will raise $53.9 million of new liquidity in aggregate after the repayment of $142.0 million of existing secured debt. The Company expects to make announcements for further individual transactions in the coming weeks. The Company has received a commitment from ABN AMRO Bank N.V.

Maritime Reporter Magazine Cover Aug 2018 - The Shipyard Edition

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