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Saturday, January 20, 2018

Ship Finance News

Front Vanguard Contract Terminated

VLCC Front Vanguard Photo Ship Finance

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.

Capital Product Partners Buys Aframax

Photo: Capital Product Partners L.P.

Capital Product Partners has announced that its Board of Directors has approved the acquisition of the eco-type crude tanker ‘Aristaios' (112,800 dwt, Ice Class 1C, built 2017, Daehan Shipbuilding, S. Korea) for a total consideration of $52.5 million from the Partnership's sponsor, Capital Maritime & Trading. The M/T ‘Aristaios' is currently employed under a time charter to Tesoro Far East Maritime Company (‘Tesoro') at a gross daily rate of $26,400. The Tesoro charter commenced in January 2017 with duration of five years +/- 45 days.

SFL Files Annual Report

Ship Finance International Limited (SFL) announced  it has filed its annual report on Form 20-F for the year ended December 31, 2013.   The annual report can be downloaded from the company's website at www.shipfinance.org. Shareholders can also request a hard copy of our complete audited financial statements free of charge upon request by writing to the below address: Ship Finance International Limited PO Box HM 1593 Par-la-Ville Place Hamilton HM 08 Bermuda   or send an e-mail to: ir@shipfinance.no

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.

Ship Finance Buys $185M Oil Rig

Bermuda-based Ship Finance International Ltd. agreed to buy an oil rig for $185 million from Sweden-based Consafe Offshore AB and lease it back to the offshore oil and gas company for 30 years. Consafe has the right to purchase the rig back after 10 years, Ship Finance said. Ship Finance -- which owns most of the oil tankers operated by Bermuda-based tanker company Frontline Ltd. -- will assume ownership of the rig this quarter, after upgrades are made to the rig. Ship Finance's fleets are managed by Frontline Management, the parent company of Frontline Ltd. (Source: www.banknet360.com)

Ship Finance Buys Oil Drill, Tanker

The AP has reported that Ship Finance International Ltd., which operates a fleet of about 50 crude oil tankers, said it bought a 2006 jack-up drilling rig for $210m and a 1997 Panamax crude carrier for $28.4m. Bermuda-based Ship Finance bought the jack-up rig, called SeaDrill 3, from SeaDrill III Ltd. Ship Finance chartered the rig back to SeaDrill III for 15 years. Under the contract, Ship Finance will receive a charter hire for $112,500 a day for the first three years of the lease, $51,000 a day for years four through seven, $43,500 for years eight and nine, and $40,000 a day for years 10 through 15. The contract also calls for Ship Finance to receive a 5 percent cut of the rig's profits after the third year if certain goals are met.

Ship Finance to Sell Tankers

Ship Finance International reportedly agreed to sell two oil tankers and ended a long-term charter deal on the vessels with Norway's Frontline Ltd., according to a Reuters report. The company has been selling a number of vessels without double hull to modernize its fleet and expand into other shipping and offshore segments. Hamilton, Bermuda-based Ship Finance said the two Suezmax tankers will reportedly be sold for $80 million, out of which $32.8 million would be paid to Frontline as compensation for ending the current charters. (Reuters)

SFL Sells Vessel, Terminates Charter

Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"), today announced that it has agreed to sell the 20-year old combination carrier Front Breaker to an unrelated third party and has simultaneously agreed to terminate the corresponding charter party with a subsidiary of Frontline Ltd. ("Frontline"). Delivery to the new owner is expected to be in May 2011 and Ship Finance expects to receive net proceeds of approximately $17.9 million including $6.6 million charter termination compensation payment from Frontline.

Ship Finance Sells Drillship to Seadrill

Ship Finance International Limited announced that Seadrill Limited has exercised a purchase option for an ultra-deepwater drilling unit. Ship Finance acquired the West Polaris in 2008 and chartered it to a subsidiary of Seadrill on a long-term bareboat charter where Seadrill was granted certain purchase options, first time in 2012. The purchase option price is $456 million and the transaction will be effected as a sale of the shares in the asset-owning subsidiary. Ship Finance will receive approximately $108 million in net cash proceeds from the sale, but does not expect a material book impact from the transaction. The company said it expects to reinvest cash proceeds in new assets, and the sale of West Polaris is not expected to impact the dividend capacity going forward.

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…

Ship Finance Terminates Charters With Horizon

Ship Finance International Limited (NYSE:SFL) has agreed to terminate chartering agreements with Horizon Lines, LLC relating to five of its vessels. Ship Finance will receive as termination compensation $40 million in second lien notes issued by Horizon Lines and warrants exercisable into ten percent of the common stock of Horizon Lines, Inc. as part of the restructuring outlined below. The 2,824teu vessels were built in Korea in 2006 and 2007, and have been chartered to Horizon Lines for an average of approximately 5 years. The original bareboat charter term was for 12 years, but following the termination of the Horizon Lines charters, Ship Finance will employ the vessels in the time-charter market instead.

BIMCO Adopts Ship Financing Term Sheet

Photo: BIMCO

In a landmark decision, BIMCO cemented its move into the domain of ship financing with the Documentary Committee’s approval of a standard term sheet for use in ship financing transactions on 17 November 2016. The term sheet has been drafted as a short and simple standard for use in bilateral ship financing transactions concerning term loan facilities. It has been prepared in the well-known BIMCO format and is indicative/non-binding, as this is considered to be the market standard. BIMCO President Philippe Louis-Dreyfus said: "I am particularly pleased to see BIMCO taking this important step.

Ship Finance Sells VLCC for $24 Mln

Ship Finance International Limited announced that it has agreed to sell the 1998 built VLCC Front Vanguard to an unrelated third party. Ship Finance has simultaneously agreed to terminate the corresponding charter party for the 18-year old crude oil carrier with a subsidiary of Frontline Ltd. The vessel is expected to be delivered to its new owner by the end of June, and the net sales price is approximately $24 million, including a compensation of $0.4 million from Frontline for the early termination of the charter. Ship Finance said the divestment of older vessels is part of its strategy to renew and diversify the fleet, and the proceeds are expected to be reinvested in new assets.

SFL Sells its Holding in Horizon Lines

Photo: Horizon Lines

Ship Finance International Limited (SFL) has sold its holding of notes and warrants in Horizon Lines, Inc. for net cash proceeds of approximately $72 million. In April 2012, Ship Finance received $40 million of Horizon Lines second-lien notes and 9.25 million warrants in Horizon Lines in connection with a termination of the charters for five container vessels. Thereafter, the second-lien notes have accumulated interest on a non-cash basis at a rate of 15 percent annually. In November 2014…

SFL, Frontline Complete Long-term Charter Agreement

On May 29, 2015, Ship Finance International Limited (SFL) entered into a heads of agreement to amend the long-term chartering agreements with Frontline Ltd. The agreement is now completed, and Frontline has issued and delivered 55 million new shares to Ship Finance. The shares represent approximately 28 percent of the total number of issued and outstanding shares of Frontline. The Frontline shares are listed in New York and Oslo, and Frontline has agreed to register the new shares for resale with the US Securities and Exchange Commission and the Norwegian Financial Supervisory Authority, respectively. The new shares will then be freely tradable for Ship Finance, and may be sold or distributed to the Company's shareholders at a later stage.  

Frontline Sells Tanker

Frontline Ltd. has through its affiliated company Ship Finance International Limited, sold its single hull Suezmax tanker Front Transporter for a gross sales price of $38m. Delivery to buyers is expected to take place in May or June 2007. Upon delivery of the vessel to the buyers, the long term charter party between Frontline and Ship Finance International Limited will be terminated, and the latter will make a compensation payment to Frontline in the amount of about $15.4m for the early termination of the charter party.

SFL Adjusts Charter Agreement with Frontline

Photo courtesy of Ship Finance International

Ship Finance International Limited (SFL) announced that it has entered into a heads of agreement to amend the long-term chartering agreements with Frontline Ltd. The company currently has 17 vessels on charter to subsidiaries of Frontline, with an average remaining charter term of nearly eight years. The new agreement will take effect from July 1, 2015 and will be a combination of reduced long-term base rates, increased profit split and an ownership share in Frontline. The operating expenses…

SFL Acquires 7 Containerships with Long-term Charters

Ship Finance International Limited (SFL) announced that it has agreed to acquire seven 4,100 teu container vessels built in 2002 in combination with long-term charters to a leading container line operator. The vessels are expected to be delivered to SFL over the course of the next few weeks, and the annual EBITDA contribution is estimated to be approximately $10 million on average during the charter period. The charters include a purchase option with profit share after approximately 5.4 years on average. Ole B. Hjertaker, CEO of Ship Finance Management AS, said, "This transaction originates from the German KG market, and while the exact terms of the deal is confidential, the acquisition price is seen as very attractive.

RBS to Exit Greek Shipping Portfolio

Image: Royal Bank of Scotland Group PLC

Royal Bank of Scotland Group PLC is winding down its Greek operation and is looking to sell its USD5 billion shipping loans portfolio, Reuters reported on Saturday. Citing finance sources familiar with the plans, Reuters said the move was part of the UK state-backed bank's efforts to shrink its international business. Part of a wider strategy by the bank to shrink parts of its international business, the decision comes as Greece makes a final attempt with international creditors for a bailout and to prevent a financial meltdown in the country.

World Finance Shipping Awards 2010

Over the last two years, credit markets have experienced contraction, deleveraging and reduced liquidity, and governments have taken highly significant measures in response to such events. The U.S. Securities and Exchange Commission and other regulators are authorized to take extraordinary actions in the event of market emergencies, and may affect changes in law or interpretations of existing laws. Shipping Finance has evolved with commercial market trends. Today, in response to asset value reduction, the sector requires bullish resilience - assessing the market outlook, exploring the latest capital raising methods and evaluating the emerging business models.

Jack-up Rig Deal Agreed by NADL & Ship Finance

'West Linus': Photo courtesy of Seadrill

North Atlantic Drilling ("NADL") and Ship Finance International Limited ("Ship Finance") agree a combined a combined sale & leaseback arrangement for the harsh environment jack-up rig 'West Linus'. Ship Finance will acquire the harsh environment jack-up drilling rig West Linus from a subsidiary of NADL. The West Linus is currently under construction at Jurong Shipyard in Singapore with scheduled delivery in December 2013. The total acquisition cost will be US$600 million and the drilling rig will be chartered back to NADL on a bareboat contract for a period in excess of 15 years.

Greek Banks Mull Cutting Shipping Portfolios

Greece's leading banks are considering offloading part of their portfolios of shipping debt worth billions of dollars in a bid to shore up their capital, according to banking and ship financing sources. Greece has secured an extension to its bailout from its European partners, but the danger of it unravelling and of Greece being pushed out of the euro zone still exists, raising the risk that Greek banks could face large deposit losses in the future to add to those they have already had. "There are several portfolios being shopped around at the moment, including shipping loans," one banking source said. The banker and a ship-finance source said such debt could be attractive for private equity players who have been scooping up distressed assets in shipping due to the sector downturn.

Frontline Purchases Pertamina VLCCs

PT Pertamina (Persero) has entered into a definitive Sale and Purchase Agreement pursuant to which Windstar Marine Inc. and Speed Shipping Corp. two single purpose companies nominated by Frontline Ltd. in accordance with the Terms of Reference for Bid, but presently controlled by Frontline's majority shareholder Hemen Holding Limited ("Hemen"), have agreed to acquire Pertamina's two Very Large Crude Carriers ("VLCC") which are currently being constructed by Hyundai Heavy Industries Co. Ltd. More than 40 bidders were invited to participate in the bidding process and finalists were short listed including the Buyers, Essar Shipping Ltd. of India and Overseas Shipholding Group Inc. of USA.

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

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