Marine Link
Tuesday, January 23, 2018

Key Equipment Finance News

Marine Finance for Brown Water Operators

© Merek / Adobe Stock

A primer for navigating the ‘ups and downs’ of marine money for domestic stakeholders. Vessel financiers are resourceful and adaptable to changing markets. On the domestic side, financiers of Jones Act and “brown water” assets have continued to serve their customers through shifting shoals in both broader capital markets and in the marine markets – both known for their ups and downs. Marine finance can take many forms. In the broadest sense, funding can be done through loans, where the vessel is owned by the borrower…

Uncle Sam Unveils Two New Economic Incentives

Two significant new financial management tools were recently unveiled by the Federal government in one highly visible piece of legislation, and each can significantly change the way that you do business. Both have the promise to stimulate business growth while adding to a company’s bottom line. Each has both friends and foes in the commercial marine industry. The Economic Stimulus Act of 2008 was signed into law on February 13, 2008. It provides, among other economic stimuli…

Finance: Equipment Leasing: A Viable Financing Option for Marine Industry

By James W. In recent years maximizing budget dollars has become an increasing concern for many businesses. Fortunately marine assets have long, useful lives, but the debt required to finance their acquisition often creates a strain on the operator's balance sheet and cash flow. According to the Equipment Leasing Association (ELA), 8 out of 10 businesses in the United States lease some kind of equipment. However, fewer know that leasing, accomplished through a bare-boat charter, is also a smart business decision for obtaining vessels. Because marine assets have long lives, lease payments can be relatively low. Companies can use these cost-savings to improve day-to-day cash flow or to gain a competitive edge by passing the cost-savings along to customers.

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.

Diana Containerships Sells Two Post-Panamax Container Vessels

Photo:  Diana Containerships Inc

Greece-based global shipping company Diana Containerships announced that it has entered into an agreement to sell the m/v March and the m/v Great, each a 2004 built containership, for an aggregate price of US$22.0 million to an unaffiliated third party. The Company expects the Vessels to be delivered to the buyer at the latest by March 30, 2018. The unaffiliated purchaser of the Vessels is the same party with which the Company entered into a previously announced agreement to sell up to seven vessels, subject to the purchaser arranging financing.

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.

Joe Pitch Joins Marine-Finance.Com

Marine-Finance.Com announced that Joe Pitch has signed on as Managing Director for Marine-Finance.Com LLC. Pitch joins former CitiCapital Commercial Marine Finance colleague Robert Girard, SVP, who, along with CEO Richard Paine, constituted the core of the CitiBank- affiliated marine group. Pitch is a 30-year veteran of the equipment leasing/finance industry he has financed more than $1b in equipment. Based in Dallas, Texas, Pitch is a graduate of Seton Hall University with a Bachelor of Business Administration with a concentration in Finance. He is a past member of the American Waterway Operators (AWO), the Offshore Marine Services Association (OMSA) and an affiliate member of the Passenger Vessel Association (PVA).

Nor-Shipping: Opening Oceans in Denmark

Photo: Nor-Shipping

Global maritime event week Nor-Shipping is making its first move outside Norway, with a new initiative to help maritime and ocean industry players realize the almost limitless business potential of the ocean space. Nor-Shipping’s Opening Oceans Conference, taking place in Copenhagen from May 2-3, 2018, will bring businesses together to illustrate and discuss key opportunities, equip delegates with the tools to tackle them, and facilitate fresh collaborations. Timed to coincide with Danish Maritime Days…

Seacor Announces JV with Cosco Shipping Affiliates

File photo: SEACOR Marine

Offshore services vessel operator SEACOR Marine Holdings Inc. said it has formed a jointly owned company with affiliates of the world’s largest ship owner, COSCO Shipping Group. The Marshall Islands company, SEACOSCO Offshore LLC, entered into contracts for the purchase of eight Rolls-Royce designed new construction platform supply vessels (PSV) from COSCO Shipping Heavy Industry (Guangdong) Co., Ltd. Six of the PSVs are of UT 771WP design (4,400 tons deadweight), and two are of UT 771CD design (3,800 tons deadweight).

SMM Finance Forum: ‘Banks are Lending Again’

Dr. Carsten Wiebers

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.

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…

Norwegians to Finance Vessel Retrofits

Olav Einar Rygg, Export Credit Norway’s director of lending for the ocean industries (Photo: Export Credit Norway)

Following the International Maritime Organization (IMO) ratifications of the ballast water and exhaust gas treaties, government-owned Export Credit Norway offers financing to international vessel owners who purchase retrofit equipment from Norwegian suppliers. The Norwegian export credit agency Export Credit Norway has assembled a specialized team and tailor-made financing solution to support vessel owners who need to retrofit equipment such as gas exhaust cleaning systems, ballast water treatment systems and new coating systems.

Coast Guard Medevacs Sailor near Key West

Photo: USCG

The U.S. Coast Guard said it medevaced a 56-year-old man from his sailing vessel, the Anthem, approximately 12 miles east of Key West, Fla., last Tuesday.   Coast Guard Sector Key West watchstanders received a report at approximately 1 a.m from a 56-year-old man sailing from St. Petersburg to Key West suffering from shortness of breath and exhaustion.   The nearby Coast Guard Cutter Raymond Evans crew launched their smallboat crew who transported the patient to awaiting emergency medical services at Station Key West. He was then transferred to Lower Keys Medical Center.

Crowley Announces Promotions

Ismael Estrada has been promoted to director of Port Operations for Crowley Liner Service's Isla Grande terminal in San Juan, Puerto Rico. security and maintenance. was subsequently promoted to Manager of Terminal Operations. report to Roberto Lugo, Jr., Vice President and General Manager. Jose F. operations. financial planning, accounting services and other reporting activities. positions including his latest as Director of Port Operations. continue to report to Roberto Lugo, Jr., Vice President and General Manager.

Socgen Joins SEA\LNG

Photo: SEA\LNG

French multinational banking and financial services company Societe Generale (Socgen) has joined SEA\LNG, the industry coalition promoting the use of liquefied natural gas (LNG) as a marine fuel. The bank is the first financial institution to join SEA\LNG. Joining a growing band of industry leaders from across the LNG value chain, Societe Generale brings an essential financial perspective to the group which aims to accelerate the uptake of LNG as a marine fuel. Paul Taylor, Global Head of Shipping Finance…

Forhaug Steps in as CEO at MMT

Peter Forhaug (Photo: MMT)

Marine surveying company MMT has appointed Peter Forhaug as acting CEO from January 1, 2018 while the Sweden based firm conducts its search for a permanent CEO.   Forhaug has a background in finance and has acted as a senior advisor to the board of MMT and is representing MMT at the board of the SMaRC research project.   MMT founder Ola Oskarsson will serve as vice president to assist Forhaug.

Midland Leases $18M in Barges

Cincinnati-based Midland Enterprises, which operates a fleet of barges, towboats and tugboats, has leased more than $18 million in new equipment from Firstar Bank during this past year. Midland worked with Firstar's Equipment Finance group to replace and expand its fleet of barges, which transport bulk commodities, a major portion of which is coal, principally on the Ohio and Mississippi Rivers and the Gulf Intracoastal Waterways. Bob Faillo, president of Midland Enterprises, said, "I've admired Firstar's persistence in getting our business. Wayne Shircliff, Firstar Bank's executive vice president and regional chairman, said, "Firstar is pleased to be partnering with such a fine company as Midland Enterprises and its subsidiary, the Ohio River Company. Our recent merger with U.S.

Sustainable Shipping Initiative Launched in Singapore

The Sustainable Shipping Initiative (SSI) launched in Singapore recently is a series of practical, collaborative action plans aimed at developing a sustainable shipping industry for the future. Wärtsilä and other members have committed to deliver first results before the end of 2013. Presented as part of Singapore Maritime Week, the action plans are a significant step for the SSI as it works toward achieving its vision of a shipping industry that is both profitable and sustainable by 2040. “The SSI has committed to an ambitious vision for the industry, and these action plans are a vital step in us achieving this vision. Work is focused on creating a clear framework that the wider industry can use to adopt more sustainable practices.

Stewart to Lead EnerMech Expansion

 Ingrid Stewart, Corporate Development Director

EnerMech has signalled it’s about to step up international expansion with the appointment of mergers and acquisitions expert Ingrid Stewart. Mrs Stewart has joined the mechanical engineering group from investment bank Simmons & Company International where she was a director specialising in corporate finance. A chartered accountant, she takes on the newly created role of Corporate Development Director, as the Aberdeen-based oil and gas services company embarks on a new phase of acquisitions and strategic joint ventures.

Canada Unveils New Arctic Shipping Safety Regulations

Photo: Transport Canada

Canada's Arctic is a vast and diverse region that is an integral part of this country. Marine transportation in the Arctic connects Canada to other countries and provides an essential lifeline for northern communities. To uphold the Government of Canada's high standards for marine shipping in the north, Transport Canada has introduced new Arctic Shipping Safety and Pollution Prevention Regulations. The regulations incorporate the International Code for Ships Operating in Polar Waters (the Polar Code) into Canada's domestic legislation.

Drewry Report Examines Investment in Ships

Drewry Shipping Consultants announced that its latest report, “Investment in Ships” is now available to purchase. This independent assessment of all the shipping markets identified that most of the world’s leading shipbuilders are in possession of a strong order backlog – Drewry considers the consequences for shipping and recommends a cautious approach. Drewry does not offer generalized recommendations or advocate particular sectors rather than others. The key aim of this report is to provide an understanding of the fundamentals and the idiosyncrasies of the particular sector under evaluation by both highlighting these features and also how they fit in with creating an informed judgement.

Keppel Explores Sale of Jack-up Rigs to Borr Drilling

Photo: Keppel Corporation Limited

Singapore yard Keppel Corporation is considering a sale of jack-up rigs to Norwegian offshore drilling contractor Borr Drilling, reports The Business Times. The world’s biggest builder of oil rigs is seeking to offload six jack-up rigs for up to US$960 million to the Oslo-listed drilling firm headed by Tor Olav Trøim, said the report. BT also reported that Keppel Capital has already hooked up with structured finance provider Clifford Capital to potentially extend a sale-and-lease-back arrangement for at least one jack-up contracted by Grupo R.

GE US Equipment Financing Appoints New Marine Sales Leader

GE US Equipment Financing has appointed Steve Isaacson as National Sales Leader. Isaacson is a veteran of the commercial marine finance industry, joining GE in 2001 after a 15-year career managing SAFECO Credit’s national marine group in Seattle. Isaacson had served the past two years as the northwest regional sales manager for GE USEF. “Steve’s extensive industry expertise in Marine financing will help us provide our marine industry customers with a more customized set of solutions across the spectrum of financing needs including new and used vessel acquisitions, vessel re-power and upgrade projects, fleet acquisitions, growth capital, working capital, balance sheet management and recapitalizations,” said Juan Corsillo, vice president of marketing and strategic initiatives for GE USEF.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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