Posh Terasea of Singapore, which is backed by PACC Offshore Services Holdings (POSH), is in the early stages of lining up orders for up to four vessels but is also keeping an eye out for merger-and-acquisition (M&A) opportunities, according to Terasea chairman Scott Lindsay.

“What we are seeing in the future, particularly with large floating LNG projects, is interest in even larger vessels,” he told TradeWinds. “Our next step for expansion would be in the 250-tonne-bollard-pull [tbp] to 300-tbp vessels, which we are discussing now at a board level.”

Lindsay says the timing of ship acquisitions will be based on what he describes as “true market indicators” like tenders in Australia, the Atlantic Basin, North Sea and other regions that require anchor-handlers to assist in the development of offshore installations.

“We will act when clients aren’t just suggesting tenders but when they are actually ready to commit,” he added. “A lot of commitments are actually made up to two years in advance, which gives us time to put together the right game plan.

“With the support of our partners we have the depth and ability to move quickly as opportunities arise in the marketplace. At the same time, it’s not a big market and its very specialised, so we are going to be aggressive but cautious about expansion. We don’t want to overtonnage ourselves.”

Lindsay says Posh Terasea would also consider the addition of large submersible barges and other assets that tie in to the sectors in which its partners specialise — offshore-support vessels (OSVs), jack-up drilling rigs and heavylift.

Posh joined forces with Terasea — a joint venture between Ezion Holdings and Seabridge, which is based in Canada and backed by Tiger Group Investments of Hong Kong — in early March. Today, the partnership oversees a fleet of nine anchor-handlers, including newbuildings.

When the company moves forward with expansion, Lindsay says funding requirements will be shared “jointly” by the partners and would likely include a combination of what he calls “shareholder equity finance” and commercial bank debt.

BY AARON KELLEY STAMFORD AARON.KELLY@TRADEWINDSNEWS.COM

Mr Scott Lindsay, Chairman of Terasea announced: “Terasea is pleased to form this JV with POSH. POSH EPIC division, with its experienced crew and management team, is arguably the world leader in FPSO towage and positioning; with an unparallelled track record, for its safety standards and timely deliveries. POSH’s track records include the towage and hookup of the world’s largest FPSOs, including FPSO Hai Yang Shi You 117, FPSO Kizomba A & B, and FPSO Agbami. The new vessels will further cement its position as the market leader.”

“The JV will reap much synergy from its shareholders and leverage on the global networks of both POSH and Terasea. With an expanded fleet of nine specialized vessels operating globally, the JV is able to offer its customers greater reliability. In addition, the JV operates vessels of 3 different categories of bollard pull, and this will provide our customers greater flexibility in configuring their bollard pull requirement.” said Mr Peter Lee, CEO of Terasea.

POSH Terasea will be led by Mr Eric Ng who is the director of the POSH EPIC division. Mr Eric Ng, has more than 30 years of experience in the offshore oil and gas industry. Mr Eric Ng said “Oil majors are demanding higher safety standards, as well as younger and more powerful vessels. The addition of four additional 16000BHP newbuild into the fleet is a testament of our commitment to continuously upgrade our fleet to meet the increasing demands of the oil and gas industry.”

About POSH – POSH is a leading offshore marine services provider that leverages some 60 years of operating experience and specialized expertise in offshore and marine oil field services. POSH was created through the merger of several companies with strong heritage and solid reputation as pioneers and leaders in their respective fields of operation from as early as 1951. POSH currently owns and operates a diversified fleet of over 100 offshore vessels. The combined assets, experience project background and track record of these companies have enhanced POSH Semco’s leadership position in the oil and gas support industries.

About Terasea – Terasea is a joint venture between Singapore listed Ezion Holdings Ltd and Seabridge Marine.

SEASPAN has signed its second newbuilding contract of the year, placing a $360m order for four 10,000 teu ships just days after finalising a $600m deal.

The New York-listed shipowner headed by Gerry Wang has ordered the quartet fromJiangsu New Yangzi Shipbuilding andJiangsu Yangzi Xinfu Shipbuilding. The ships are scheduled for delivery next year and will be leased to Japan’s Mitsui OSK Lines, which already has 5,000 teu ships on charter from Seaspan.

The newbuildings, along with some secondhand purchases, will be subject to allocation under the right of first refusal agreement with Greater China Intermodal Investments.

This is an investment vehicle established between Seaspan and an affiliate of global alternative asset manager Carlyle, along with Blue Water Commerce.

The same arrangement covered the order signed by Seaspan earlier this month for five 14,000 teu ships that will be chartered to Yang Ming.

Seaspan will also buy four 2003-built, 4,600 teu class vessels from MOL, to be handed over in the second half of 2013 and first quarter of 2014, then chartered back to MOL on a short-term, fixed-rate basis.

Seaspan intends to fund construction of its portion of these eight containerships initially with a portion of the proceeds of its previous Series C and D preferred share offerings and subsequently, over the next few quarters, with debt financing.

Additionally, the shipowner is considering various sources of debt financing to which it has access.

We are pleased to welcome the latest additions to our growing fleet.

By Alison Leung

HONG KONG, Jan 4 (Reuters) – Taiwan’s government-owned Yang Ming Marine Transport Corp will lease up to 10 new ultra-large container ships (ULCS) from U.S.-listed Seaspan Corp to cut unit costs and weather a volatile global shipping market.

Set to be delivered from 2015, Yang Ming will charter five of the new ships for 10 years, with an option to lease another five, spokesman Winsor Huang said.

“Seaspan has won the tender to provide the new ships and an agreement is expected to be signed later this month,” Huang told Reuters on Friday.

The vessels of 14,000 twenty-foot-equivalent units (TEU) each, which will be the first ULCS for Yang Ming, are most likely to be built by a South Korean shipbuilder, he said, but declined to provide any details.

A Hyundai Heavy Industries Co Ltd official told Reuters that the shipbuilder was in talks with Seaspan concerning the contract but that nothing had been decided.

The market price to build a new 14,000 TEU is estimated at $100 million to $120 million, analysts say.

Hyundai Heavy has said it aims to win $29.7 billion in orders this year.

Shares of Yang Ming rose 1 percent on Friday, outperforming Taiwan’s main TAIEX index, which eased 0.5 percent.

The global shipping market is set for another volatile and low return year in 2013 due to a lingering supply glut, analysts said.

Macquarie forecasts new vessel deliveries will rise 8-10 percent year-on-year in 2013, while growth in demand for container shipping is seen remaining weak at 4-5 percent this year.

Yang Ming’s move is positive as it will help lower unit operating costs, said Bonnie Chan, a shipping analyst at Macquarie.

“This is something they need,” said Chan. “Yang Ming needs to contribute to the alliance in order to make the alliance stay competitive.”

In the four-member CKYH alliance, China COSCO Holdings Co Ltd’s COSCO Container Lines and Hanjin Shipping Co Ltd already operate 13,000 and 14,000 TEU ships.

After Yang Ming begins leasing ULCS, Kawasaki Kisen Kaisha Ltd will be the only alliance member with no immediate plans to deploy ships of more than 10,000 TEU.

Yang Ming, which in December sold a 30 percent stake in its Kao Ming Container Terminal in Taiwan’s Kaohsiung to Chinese investors for $135 million, says it currently operates container ships with a total capacity of 359,523 TEU and has outstanding orders for new vessels of 50,686 TEU.

http://www.reuters.com/article/2013/01/04/yangming-seaspan-idUSL4N0A91LU20130104

Seaspan intends to use the net proceeds from the offering for general corporate purposes, which may include making vessel acquisitions or investments. Seaspan has filed an application to list the Series D Preferred Shares on the New York Stock Exchange.

Jefferies & Company, Inc., Incapital LLC and Credit Suisse Securities (USA) LLC acted as joint book-running managers and Incapital LLC was the sole structuring agent for the offering.

When available, copies of the prospectus supplement and accompanying base prospectus related to the offering may be obtained from Jefferies & Company, Inc., 520 Madison Ave, 12th Floor, New York, NY 10022, 877-547-6340, email:Prospectus_Department@Jefferies.com; Incapital LLC, Attn: DCM Prospectus Department, 200 S. Wacker Drive, Suite 3700, Chicago, Il 60606, email: prospectus_requests@incapital.com; and Credit Suisse Securities (USA) LLC, One Madison Avenue, Floor 1B,New York, NY 10010 email: newyork.prospectus@credit-suisse.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus.

About Seaspan

Seaspan provides the world’s major shipping lines with an attractive outsourced alternative to vessel ownership by offering long-term leases on large, modern containerships combined with industry leading ship management and a reputation for safety, quality and innovation. Seaspan’s managed fleet of its own and third party vessels consists of 76 containerships representing a total capacity of approximately 475,000 TEU, including seven ships scheduled for delivery by the end of 2015, three of which will be owned bySeaspan. Seaspan’s current operating fleet of 69 vessels has an average age of approximately five years and an average remaining lease period of approximately seven years.

Seaspan’s common shares are listed on The New York Stock Exchange under the symbol “SSW”.

Seaspan’s Series C Preferred Shares are listed on The New York Stock Exchange under the symbol “SSW PR C”.

Forward-Looking Statements

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. These risks and uncertainties include, among others, those discussed in Seaspan’s public filings with the SEC. Seaspan undertakes no obligation to revise or update any forward-looking statements unless required to do so under the securities laws.

Contacts:

Seaspan Corporation – Investor Relations Inquiries
Mr. Sai W. Chu
Chief Financial Officer
604-638-2575
www.seaspancorp.com

The IGB Group – Media Inquiries
Mr. Leon Berman
212-477-8438

Seaspan intends to use the net proceeds from the offering for general corporate purposes, which may include making vessel acquisitions or investments. Following the offering, Seaspan intends to file an application to list the Series D Preferred Shares on the New York Stock Exchange.

Jefferies & Company, Inc., Incapital LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers and Incapital LLC is the sole structuring agent for the offering.

When available, copies of the prospectus supplement and accompanying base prospectus related to the offering may be obtained from Jefferies & Company, Inc., 520 Madison Ave, 12th Floor, New York, NY 10022, 877-547-6340, email:Prospectus_Department@Jefferies.com; Incapital LLC, Attn: DCM Prospectus Department, 200 S. Wacker Drive, Suite 3700, Chicago, Il 60606, email: prospectus_requests@incapital.com; and Credit Suisse Securities (USA) LLC, One Madison Avenue, Floor 1B,New York, NY 10010 email: newyork.prospectus@credit-suisse.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus.

About Seaspan

Seaspan provides the world’s major shipping lines with an attractive outsourced alternative to vessel ownership by offering long-term leases on large, modern containerships combined with industry leading ship management and a reputation for safety, quality and innovation. Seaspan’s managed fleet of its own and third party vessels consists of 76 containerships representing a total capacity of approximately 475,000 TEU, including seven ships scheduled for delivery by the end of 2015, three of which will be owned bySeaspan. Seaspan’s current operating fleet of 69 vessels has an average age of approximately five years and an average remaining lease period of approximately seven years.

Seaspan’s common shares are listed on The New York Stock Exchange under the symbol “SSW”.

Seaspan’s Series C Preferred Shares are listed on The New York Stock Exchange under the symbol “SSW PR C”.

Forward-Looking Statements

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. These risks and uncertainties include, among others, those discussed in Seaspan’s public filings with the SEC. Seaspan undertakes no obligation to revise or update any forward-looking statements unless required to do so under the securities laws.

Contacts:

Seaspan Corporation – Investor Relations Inquiries
Mr. Sai W. Chu
Chief Financial Officer
604-638-2575
www.seaspancorp.com

The IGB Group – Media Inquiries
Mr. Leon Berman
212-477-8438

The Chinese time-charter player is becoming a commercial operator with a series of supramaxes.

Hong Kong-based Tiger Group Investments is expanding its Greathorse Shipping with a new focus on spot and medium-term alongside its long-term time-charter- oriented business.

The first step is to build up its fleet with a series of 58,000-dwt supramax bulkers.

The ships are set for delivery early next year at Sinopacific Shipbuilding’s Dayang yard, where they were ordered for the account of the builder or a related entity.

Market sources tell TradeWinds the two firm ships and one option are priced at something under $22m each. There are two firm ships and an option.

Tiger and Sinopacific have indirect links, in that Tiger chairman Graham Porter serves as an independent board member at Jaccar Holdings Shanghai, the private investment vehicle through which French shipowner Jacques de Chateauvieux holds his principal share in the Simon Liang-led Sinopacific group. Jaccar, however, is not the owner of the entity that ordered the ships.

Porter tells TradeWinds that he has no investment in Sinopacific.

The ships are not the newest eco-design but bulkers like those Sinopacific has been building for several years for owners like Eagle Bulk and Spar.

The idea is for Tiger’s Great-horse to secure tonnage that can go to work right away as it makes its transition from a pure time-charter player to a direct commercial operator – first in supramaxes and then in two or three other sectors, both dry and wet. The first two supramaxes are to be delivered in February or March and the optional unit in April or May.

But Porter adds that Great-horse is looking at acquiring up to six in total. Some of these would probably be outright newbuilding orders, possibly for 63,000-dwt or 64,000-dwt newer supramax eco-designs, or possibly in larger tonnage brackets.

He plays up the company’s insider knowledge of Chinese yards, financiers and cargo interests as a key element in the planned expansion and says Greathorse has people in place to take on more direct commercial operation but adds that this will depend on the tonnage.

“Unless we get a critical mass, we’d probably put it in the hands of another commercial operator or a pool,” Porter said.

Shanghai-based Greathorse, led by president Henry Chiang and chairman CC Xue, already has a fleet of some 17 operating ships and newbuildings across a range of sectors including panamax and capesize bulkers, small chemical tankers and boxships.

Tiger Group Investments, an active investor in shipping, transport and industry that frequently features on lists of dry-powder shipping players with cash to spend, operates as whole or part owner of several entities including New York-listed containership owner Seaspan Corp.

By Bob Rust bob.rust@tradewindsnews.com
05 December 2012, 08:58 GMT

Seaspan intends to use the net proceeds from the offering for general corporate purposes, which may include making vessel acquisitions or investments. Following the offering, Seaspan intends to file an application to list the Series D Preferred Shares on the New York Stock Exchange.

Jefferies & Company, Inc., Incapital LLC and Credit Suisse Securities (USA) LLC will act as joint book-running managers and Incapital LLC is the sole structuring agent for the offering.

When available, copies of the prospectus supplement and accompanying base prospectus related to the offering may be obtained from Jefferies & Company, Inc., 520 Madison Ave, 12th Floor, New York, NY 10022, 877-547-6340, email:Prospectus_Department@Jefferies.com; Incapital LLC, Attn: DCM Prospectus Department, 200 S. Wacker Drive, Suite 3700, Chicago, Il 60606, email: prospectus_requests@incapital.com; and Credit Suisse Securities (USA) LLC, One Madison Avenue, Floor 1B,New York, NY 10010 email: newyork.prospectus@credit-suisse.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus.

About Seaspan

Seaspan provides the world’s major shipping lines with an attractive outsourced alternative to vessel ownership by offering long-term leases on large, modern containerships combined with industry leading ship management and a reputation for safety, quality and innovation. Seaspan’s managed fleet of its own and third party vessels consists of 76 containerships representing a total capacity of approximately 475,000 TEU, including seven ships scheduled for delivery by the end of 2015, three of which will be owned bySeaspan. Seaspan’s current operating fleet of 69 vessels has an average age of approximately five years and an average remaining lease period of approximately seven years.

Seaspan’s common shares are listed on The New York Stock Exchange under the symbol “SSW”.

Seaspan’s Series C Preferred Shares are listed on The New York Stock Exchange under the symbol “SSW PR C”.

Forward-Looking Statements

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. These risks and uncertainties include, among others, those discussed in Seaspan’s public filings with the SEC. Seaspan undertakes no obligation to revise or update any forward-looking statements unless required to do so under the securities laws.

Contacts:

Seaspan Corporation – Investor Relations Inquiries
Mr. Sai W. Chu
Chief Financial Officer
604-638-2575
www.seaspancorp.com

The IGB Group – Media Inquiries
Mr. Leon Berman
212-477-8438

Policy bank provides $520m for seven vessels in deal that carries option for 18 more ships

CHINA Development Bank, a state-backed policy bank, has been confirmed as the financier behind the containership deal that Seaspan announced last year with privately owned Chinese yard Yangzijiang Shipbuilding.

CDB is understood to have provided a $520m loan for the $700m deal.

New York-listed Seaspan placed an order for seven 10,000 teu boxships with Yangzijiang last June, with an option for 18 more, as part of a much larger investment programme. Two of the newbuildings will be on long-term charter to Cosco.

Seaspan only ever places orders that are backed by firm charter commitments to blue-chip lines.

Singapore-listed Yangzijiang confirmed that CDB provided the funding but would not comment on the amount and other details of the loan.

The shipbuilder said CDB’s involvement was determined around the time when the deal was finalised last year, but that the bank “had recently approved the loans in principle”.

Seaspan, which is due to announce its second-quarter results tomorrow, did not respond to Lloyd’s List’s request for comment on the CDB loan.

This is not the first time CDB has supported privately owned Yangzijiang. In early July, the yard secured a $150m loan from the bank on the back of 9.73% shares held by its president Ren Yuanlin.

In January, Yangzijiang’s purchase of a 45% stake in four unfinished post-panamax newbuildings at its own yard was made possible due to CDB’s financial endorsement.

The remaining share in the vessels was taken by Germany’s Peter Döhle after another owner failed to raise the money.

Following premier Wen Jiabao’s call last year to extend credit lines to ship finance in Europe, CDB has been actively engaged in lending and partnering with western owners and brokers.

The bank signed a global co-operation pact with Copenhagen-based broking house Maersk Broker last June and was described by one of the firm’s directors as a player emerging as “one of the world’s largest ship lenders”.

However, this does not mean CDB is extensively opening its pocket to foreign owners or that striking deals with Chinese yards will be enough to woo the policy bank, according to a source close to Seaspan.

“It is difficult for other foreign owners to develop similar loan programmes in China [to Seaspan],” said the source. “Ordering ships in a Chinese yard is not the sole determining factor in raising financing support from Chinese banks. The banks will seek owners who they can trust.”

Seaspan chief executive Gerry Wang, who comes from China and maintains close links with the country’s business leaders, said in a conference call in May that his company had attracted investment from a major Chinese bank. But he was tight-lipped about giving details, at the request of the financier, saying only that he was happy with the terms.

This upbeat sentiment is a far cry from the credit crunch that cripples many Chinese yards facing dwindling orderbooks and unyielding overcapacity.

In early July, Xu Caizhong, president of Jiangsu Zhenghe Shipyard, a medium-sized builder in Zhejiang Province, spoke on a Chinese TV show about the apathy of China’s banks.

“The banks told us that shipbuilding was classified a high-risk industry in their overall lending policies and no branches would step in,” Mr Xu said.

Yangzijiang is China’s fifth-largest shipbuilder, with yards in Jiangsu Province. It is due to release its financial results for the first half of this year on August 8.

The company did not follow other star builders in China, such as Rongsheng Heavy Industry and Guangzhou Shipyard International, in issuing profit warnings.

Article from Lloyd’s List

http://www.lloydslist.com/ll/sector/containers/article404210.ece

Published: Wednesday 01 August 2012

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