Introduction
Our client is a shipping company with a track record of more than 20 years in the maritime sector, primarily as an investor in international shipping. Their fleet comprises a range of handysize dry bulk vessels. As the interest rate swaps for four of these vessels were approaching expiration, our client was eager to consider alternative financing arrangements and explore the potential of transitioning to a new financier. This presented an ideal opportunity to reassess the financing structure and examine options with other financial institutions.
Initially, the client had undertaken efforts to find a suitable new financier on their own. However, when the desired outcome proved elusive, Asset Partners was brought in to assist.
Client goals
From discussions with our client, the objectives appeared to be twofold.
Initially, our client sought a lender willing to offer long-term financing with more favorable terms than their existing lender. Secondly, with the opportunity presented by the high day rates at that time, the client aimed to have the flexibility to utilize surplus liquidity for accelerated debt repayments without incurring penalties or other complications.
Activities
Asset Partners began by identifying the client's requirements and conducting a thorough analysis of the fleet. In collaboration with our client, we refined the business plans and developed comprehensive financial models.
These components served as the foundation for both the brief teaser and the comprehensive financing memorandum that we prepared. Using the teaser, we conducted a market inventory anonymously, identifying (international) financiers who expressed interest in providing the required financing. Following this initial phase, three financiers were chosen to receive the complete financing memorandum. They used document to submit financing proposals. Ultimately, a well known Dutch bank was chosen as the most suitable financier through this competitive process. Subsequent negotiations were successfully conducted with the selected bank, leading to the completion of the transaction. Asset Partner oversaw the entire process until the closing and disbursement of funds.
Result
The efforts culminated in the refinancing of the existing loans under improved terms and greater flexibility. This allowed our client to leverage favorable market conditions and accelerate debt repayment, thus establishing a solid foundation for the future.
Get in touch
Curious about the opportunities in the (international) finance market? Contact Asset Partners and find out how we can help.
