Teekay’s new vessels’ debts underwritten

Jul 06 2018


South Korea’s state-run KDB Bank and NH Investment & Securities have underwritten a $15 mill subordinated debt each to partially finance the $330 mill purchase of Teekay’s three new tankers.

According to a report in Korean Investors, in addition to the $30 mill subordinated loans, Teekay borrowed $260 mill in senior direct loans from KDB, Export-Import Bank of Korea and other global banks to order the shuttle tankers at Samsung Heavy Industries.

 

Teekay raised $40 mill for the three newbuildings ordered in 2015. They were delivered in 2017 and early 2018.

 

The South Korean financial institutions vessel financing was part of KDB Bank’s ‘Ocean Value-up Fund Programme’ of about Won1.2 trill won ($1.1 bill). It was launched in 2015 in a bid to support the country’s shipbuilders struggling with reduced orders, due to the slowing global shipping industry.

 

Under the terms of the subordinated debt, KDB and NH Investment will receive only interest payments for the first five years before receiving the principal sum.

 

“The vessels are in long-term shipping contracts with leading companies, so they are expected to generate stable cash flows,” a KTB Asset source told the Korean investors.

 

KTB Asset recently hired a vessel financing expert and has been aggressively marketing for ship financing in Germany, UK and Singapore.

 



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June-July 2018

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