VOLUME 10

25th Annual Marine Money Week - June 19-21, 2012 The Pierre Hotel, New York City

ISSUE 16

April 26, 2012

INSIDE

The Week in Review page 1

Deal Tables & Bond Prices page 4

Conference Schedule page 10

A Pivotal Year for Dealmaking: The Future of Shipping & Offshore Asset Finance As we move closer to a market bottom, some of the most remarkable leaders in the global shipping and offshore finance industries will come together and share their vision for the future - and discuss how they are positioning their businesses to thrive. This is the world’s best attended event of its kind and is a not-to-be-missed opportunity for networking, transaction development & education. The program will be released on Monday, April 30th via an email promotion and will be continually updated thereafter on our website at the following link: http://www.marinemoney.com/forums/MMWeek12/index.htm

The Week in Review

We hope you will join us in New York as we celebrate our 25th Anniversary Year!

“Priceless” – Tsakos’ Follow-on Offering EDITORIAL STAFF George Weltman, Publisher [email protected]

BUSINESS AND SUBSCRIPTION OFFICE UNITED STATES One Stamford Landing Suite 214 62 Southfield Avenue Stamford, CT 06902 USA Phone: +1.203.406.0106 Fax: +1.203.406.0110 Email: [email protected] To learn more about subscribing, please contact us via your preferred medium at the office listed above. Annual Subscription is $1490 US plus postage. Freshly Minted may be photocopied by license only. Electronic or physical reproduction or forwarding of this document in whole or in part is strictly prohibited, even for internal purposes. While Marine Money has taken great care in the production of this publication, no liability can be accepted for any loss incurred in any way whatsoever by any person who may seek to rely on the information contained herein.

A few weeks ago an experienced shipping man, not the fictional one, suggested, based upon his experience, that you should get equity whenever you can and without concern for price. In the long-run, the security of having equity allows one to sleep at night particularly in this volatile business. Nevertheless, equity deals remain difficult as investors remain at best indifferent to shipping. Despite little demand, some offerings have an easier time than others. MLPs, with their retail following and others, in less tenuous sectors, like Costamare are able to get deals done. Yet these too must be put on sale and discounted. (For shipping, discounts have been approximately 9% as opposed to the broader market’s more typical 6.5%.) And even then they rarely trade up immediately. For marketing, it helps if you can get a block trade or have an installed group of investors. Leaving your fate to disinterested retail investors is not an enviable position for a banker. For some, the inevitable conclusion is that many of these companies should not be public. Unfortunately, Tsakos Energy Navigation Limited’s follow-on offering became a fire sale. Last Tuesday, the company announced the offering of 10 million shares of com-

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mon stock. While the dilution of ~21% was not insignificant, Greg Lewis of Credit Suisse posits that with ship values at cyclical lows “…management believes potential asset plays are worth the dilution”. The company’s main shareholder, Tsakos Foundation, agreed to purchase one million of these shares. In addition, the company granted the underwriters an option to purchase 1.5 million shares. The shares closed that day at $7.83. The transaction priced the next day at $6.50/share a discount of approximately 17% from the prior closing price. In addition, the Foundation doubled its purchase to two million shares. Gross proceeds of $65 million will be used to fund growth initiatives, including LNG, working capital and other general corporate purposes. More details of the transaction are shown in the Guts of the Deal on the following page. We refuse to be arbiters. Around our office, the question of whether it is a good or a bad deal is irrelevant, what matters is that it got done. Credit Suisse was the book-running manager with Morgan Stanley acting as senior co-manager. Co-managers included Clarkson Capital Markets, Dahlman Rose, and Brock Capital.

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The Week in Review continued

Guts Of the Deal

Issuer Number of Shares % of Total O/S Shares Offering Price Deal Size Green Shoe With Over-Allotment Primary Shares Dividend Policy Lock-up Use of Proceeds Book-running Manager Senior Co-manager Co-managers Issuer's Counsel Underwriter's Counsel Accountants Incorporation Industry Information Stock Exchange Ticker

Tsakos Energy Navigation Limited 10,000,000 21.64% $6.50 $65,000,000 1,500,000 $74,750,000 100.00% Quarterly cash dividend at Board's discretion 90 days Growth initiatives, including LNG, working capital and other general corporate purposes Credit Suisse Morgan Stanley Clarkson, Dahlman Rose, Brock Capital Mello Jones & Martin, Morgan, Lewis & Bockius Cravath, Swaine & Moore Ernst & Young (Hellas) Bermuda ICAP Shipping NYSE TNP

Teekay LNG Dips its Toe in the Oslo Fjord - Issues NOK 700 Million Unsecured Bonds

Like night follows day, when Teekay LNG Partners L.P. needs capital it hits up the banks and then the equity markets. It is both the nature and the beauty of an MLP. Like its sister, Teekay Offshore, Teekay LNG saw opportunity in Oslo and last week announced its intention to Issue NOK 500-700 million of new five year senior unsecured bonds. Subsequently, due to high demand the company issued NOK 700 million of these bonds, which were priced at NIBOR + 5.25%, at the wide end of the expected range of 5.00% to 5.25%. Proceeds of the offering will be used for general partnership purposes. Details of the offering are shown on the following page in the Guts of the Deal. As the third largest independent owner and operator of LNG tonnage behind MOL and NYK, Teekay LNG has 100% of its fleet (average age of six years) operating under long-term fixed rate contracts with an average duration of 14 years. Together these charters contribute $6.7 of forward fixed revenues. From a financial perspective, the company has no loan covenant concerns or unfunded CAPEX. Moreover, the company has $380 million of liquidity with no material debt balloon payments until 2018. Thus the proceeds of the offering are the proverbial dry powder.

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Pareto Securities was the lead manager of the offering which was co-managed by Swedbank First Securities.

As Good as it Gets – DFDS’ “Bank” Loan. Not!

With the exception of the A.P. Moller-Maersk transaction, DFDS A/S recent bond issue was one of the most competitively priced deals we have seen thus far this year. Last week, the company announced its intention to offer NOK 400 – 500 million of fouryear senior unsecured floating rate bonds. Rated BBB-/BB+ by Nordea, the bonds were priced at NIBOR + 3.50% and swapped into a fixed, four-year Danish interest rate of approximately 4.3%. Due to strong demand, the company sold the full amount, NOK 500 million, of the bonds to a large group of institutional investors in Denmark, Norway and Sweden as well as some retail clients. Proceeds of the offering will be used for general corporate purposes. The Guts of the Deal appears on the following page. While priced at “bank” rates, the bond is a better deal. The terms, including a four year tenor with no amortization or security and a single financial covenant are comparable if not better than they could achieve from their bankers. Until today, DFDS has covered its debt financing needs via banks, but like Maersk, wanted to reduce its dependency on the banks. Described as a means to supplement and partly replace existing bank

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Guts Of the Deal

Issuer Amount Notes Offered Coupon Issue Price Maturity Date Amortization Optional Redemption Guarantees Ranking Security Undertakings Financial Covenants Dividends Change of Control Use of Proceeds Credit Rating Lead Manager Co-Manager Governing Law Incorporation Listing Trustee

Teekay LNG Partners L.P. NOK 700,000,000 Floating Rate Senior Unsecured Bonds 3-month NIBOR + 5.25% 100.00% 3-May-2017 Repaid in full at maturity at par Non-callable None Parri passu with all other senior unsecured debt and subordinate to all other obligations which are manditorily preferred by law. Unsecured Standard and customary for a transaction of this kind Free liquidity of $35M or greater; Net Debt/Net Debt+Equity cannot exceed 80%; Tangible Net Worth not less than $400M Full payout based upon Cash Available for Distribution Put at par General partnership purposes Not rated Pareto Securities Swedbank First Securities Norwegian Marshall Islands Application to be made for listing on the Oslo Bors Norsk Tillitsmann

debt, the bond issue is a means to diversify the company’s financing structure and increase the flexibility and efficiency of its financing. Although this is its first issue, the company will be back with the goal of constructing a ladder of maturities. Founded in 1866 and based in Copenhagen, DFDS is Northern Europe’s largest integrated shipping and logistics company. DFDS Seaways operates a network of 25 routes with 50 freight and passenger ships while DFDS Logistics provides freight solutions in Europe utilizing trailers containers and rail. The company combines shipping and land transport to serve forwarders, haulers and manufacturers of heavy industrial goods across Northern Europe. In addition, the company transports passengers in combination with freight. Revenues are split 80% and 20% respectively between freight and passengers. The company operates a fleet of 49 vessels, consisting of 24 Ro-Ro vessels, 12, Ro-Pax, 8 container and sideport vessels and 5 passenger ships. The strategy is to have a 50/50 ownership charter ratio of Ro-Ro vessels to secure flexibility in different economic climes. Lars Kirkeby of Nordea outlines the key investment considerations as follows: http://www.marinemoney.com

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Credit Supportive • DFDS is Northern Europe’s largest integrated shipping and logistics company. • DFDS’ business operations exhibit limited inherent cyclicality compared to traditional commodity shipping, with a fleet of freight and passenger ships, as well as a huge logistics operation. • DFDS’ geographic diversification across Northern Europe as well as activities aimed at Russia and the surrounding countries reduces dependence on developments in any single region. • DFDS’ credit profile as of year-end 2011 is healthy and sound. The adjusted net debt (adjusted for pension liabilities and operational lease) to EBITDA and total debt to capitalisation ratios ended the year at 2.8x and 48% respectively. Credit Challenges • The market for sea transport of freight and passengers is affected by the general level of demand and by the state of the economy. Significant drops in demand will in most situations lead to overcapacity and increased price pressure in the market. • The market for freight and passenger ships is characterized by intense price competition, increasing cost pressure and fierce competition.

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Guts Of the Deal

Issuer Amount Notes Offered Coupon Issue Price Maturity Date Amortization Optional Redemption Guarantees Ranking Security Undertakings Financial Covenants Change of Control Use of Proceeds Shadow Credit Rating-Nordea Arrangers Governing Law Incorporation Listing Trustee

DFDS A/S NOK 500,000,000 FRN Senior Unsecured Bonds 3-month NIBOR + 3.50% 100.00% 2-May-2016 Repaid in full at maturity at par Non-callable None Parri passu with all other senior obligations except those manditorily preferred by law Unsecured Norwegian bond market standard covenants for the issuer Book Equity ratio > 30% Put at 100% General corporate purposes BBB-/BB+ Nordea Markets, SEB Merchant Banking Norwegian Denmark Application will be made for listing on the Oslo Stock Exchange Norsk Tillitsmann

• The market for sea transport of freight and passengers is also affected by industry specific conditions, including changes in the market for alternative forms of transport, such as road, rail and air, the latter of which mainly impacts upon the passenger sector. • DFDS’ strategy is to expand its network of sea and land transport. Expansion of both the sea and land transport parts of the network will mainly be achieved by the acquisition of companies and activities. Nordea Markets and SEB Merchant Banking were the lead arrangers.

In Play – Fairstar and Dockwise Face-off

Last Sunday, Dockwise Ltd. made an unsolicited conditional offer to purchase the shares of Fairstar Heavy Transport N.V. at a price of NOK 9.30/share, a 22% premium to the last closing price of NOK 7.62. Simultaneously, Dockwise has entered into share purchase agreements for the acquisition of approximately 54% of the outstanding shares, of which approximately 19% were unconditional. Once the subjects on the balance are lifted, Dockwise plans to make a mandatory offer for the rest of the company. The transaction is to be financed with cash on hand and a two part equity offering of $250-300 million consisting of a rights issue and http://www.marinemoney.com

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bridge equity. The rights issue is in the amount of $250 million. Major shareholder HAL Investments B.V. (“HAL”) and certain other shareholders have committed to exercise all their subscription rights at the subscription price. In addition, HAL has committed to subscribe for unexercised rights up to such a number such that it will not have more than 33% of the voting rights after the issue. This equates to a minimum investment of $45 million to a maximum commitment in the range of $132-156 million. In addition Dockwise and HAL have agreed to a bridge equity facility. HAL has agreed to purchase $50 million in financing preference shares bearing a cumulative annual dividend of 9%. Dockwise may redeem any or all of the shares prior to October 1, 2012. If any preference shares are outstanding after 1 November 2012, then • if the one-month average market price is more than 10% above or below the issue price under the rights issue, any remaining preference shares including accumulated dividends shall be placed with investors and converted into common shares at a conversion price such that Dockwise can fully repay HAL; • if the one-month average market price is within 10% of the issue price under the rights issue, any remaining preference shares including accumulated dividends will be converted into common shares at a 6% discount to the one-month average market price and issued to HAL up to HAL having a 33.00% stake in Dockwise post issue. If any preference shares remain after such conversion and issuance to HAL, Dockwise at its

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The Week in Review continued option can (i) redeem the remaining preference shares including accumulated dividends in cash or (ii) arrange that these remaining preference shares including accumulated divi dends are placed with investors and converted into common shares at a conversion price such that Dockwise can fully repay HAL. From Dockwise’s perspective, the transaction accelerates the company’s strategy of diversification. In particular, the acquisition will enhance its presence in the downstream production and processing phase to go along with its position in the exploration and development phase, which is characterized by short-term projects in contrast to the former’s longer term projects. Not surprisingly, Fairstar has a different take on the offer and intends to fight it. In their view, the offer seriously undervalues the company by not taking into account the replacement cost of the fleet, the value of the company’s order book and its reputation in this sector. In the big picture, the company breaks down the universe of potential transactions into Red Box and Green Box projects with the expectation that in 2012 and 2013 most of these projects will award marine transportation contracts. The total segment value of the Green and Red Boxes is respectively $350 million and $2 billion. Fairstar’s strategy is to focus on the Red Box, which includes

multiple voyage contracts for onshore LNG projects rather than the single voyage contracts for offshore development in the Green Box. Looking at both boxes, the company has a total of 122 months contracted at an average dayrate of $73,000 which equates to a total contract backlog value of $303 million. To demonstrate a higher valuation, the company presented a new-build parity analysis in which they added value of the cash flow during the construction period to the equity value per share which gave an implied value of NOK 16.5. And lastly, based upon certain assumptions, Fairstar calculates that the deal is accretive up to NOK 14/share to Dockwise shareholders. While together these suggest that Dockwise’s offer is undervalued, the most interesting argument Fairstar offers is that in every single contract award, the company has competed against Dockwise and won. Fairstar has appointed ABG Sundal Collier and SEB Enskilda as advisors. Pareto Securities and Pareto Project Finance have acted as financial adviser to Dockwise on the transaction and global coordinator and bookrunner on the rights issue. ABN AMRO and Kempen & Co will act as joint bookrunners for the rights issue. NautaDutilh, Thommessen and Appleby have acted as legal adviser to Dockwise. Boxers to your corners, the next round is about to begin.

SAVE THE DATES FOR MARINE MONEY’S 2nd QUARTER 2012 FORUMS 2nd. Ann. Houston Offshore Finance Forum - Wednesday, May 2, 2012 InterContinental Near the Galleria, Houston, Tx 9th Ann. Istanbul Ship Finance Forum - Thursday, May 10, 2012 Swissotel - The Bosphorus, Istanbul 14th Ann. Norway Ship & Offshore Finance Forum - Thursday, May 31, 2012 Oslo Concert Hall, Oslo 25th Ann. Marine Money Week - June 19-21, 2012 The Pierre Hotel, New York City

We look forward to seeing you at one of our 2012 events and if we can be of assistance as you make your plans, please don't hesitate to contact us Marine Money International Email: [email protected] • Website: www.marinemoney.com http://www.marinemoney.com

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Deal Tables & Bond Prices Equity Deal Table

H H

H = New

- = Updated

Issuer

Underwriters / Advisors

Amount

Structure / Pricing / Comments

Status

Tsakos Energy Navigation Limited

Credit Suisse, Morgan Stanley

$65

Company sold 65M shares at $6.5 million raising $65M in gross proceeds. Proceeds will be used to fund growth initiatives, including LNG, working capital and gen'l corporate purposes. Tsakos growth capital.

Done

Seabras.

BTG Pactual Bank, Morgan Stanley, Citi, BBInvestimentos, HSBC, Arctic Securities, DNB

$590

Planned IPO by SeaDrill subsidiary on the São Paulo Stock Exchange (BM&FBOVESPA); set to launch after the establishment of an MLP and the receipt of required consents from Petrobras

In Progress

DryShips Inc.

Deutsche Bank, Credit Suisse, Evercore, Raymond James, Simmons & Co., ABN AMRO, COMMERZBANK, Dahlman Rose, DVB, Nordea

$187

In a secondary offering, DryShips sold10M shares, in an upsized offering of Ocean Rig at $16.25/share, a 4.3% discount. The green shoe was exercised bringing total proceeds to the seller of $186.9M. Mr. Economou bought 1.9M shares. DryShips and Economou own respectively 65.2% and 4.1%.

Done

Scorpio Tankers Inc.

Evercore, RS Platou

$27

Company in a direct placement sold 4M shares at $6.75/share (2.7% discount) raising gross proceeds of $27M.Proceeds will be used to partially repay revolver which will be re-borrowed for working capital, gen'l corporate purposes and to fund future vessel acquisitions.

Done

GasLog Limited

Goldman, Sachs, Citi, J.P. Morgan, UBS, Dahlman, Rose, DNB, Evercore, Pareto, SEB

$329

Company offering 23.5M shares priced at $14/share below expected range. Net proceeds will be used with $1.13B of committed debt financing to fund remaining yard installments ($1.44B) due on 8 n/b LNG carriers.

Done

North Atlantic Drilling Ltd.

RS Platou, Arctic Securities, DNB, Nordea, Pareto, SEB Enskilda

$300

Company issued 150M new shares at $2/share in a private placement fully underwritten by Seadrill, which subscribed to 75M shares. Proceeds will be used to pay ist installment on n/b HE semi-submersible, pay down inter-company debt to Seadrill, and for gen'l corporate purposes. Co. to list on NYSE in Q3 2012.

Done

DHT Holdings Inc.

UBS, Dino Capital, MTK Capital

$73

Company raising $80M through a rights offering ($72.5M) backstopped by Anchor Capital and a private placement ($7.5M) to Anchor. Offering consists of a lot comprising 200 common shares and 1 preferred share for $280/lot due to insufficient authorized shares. Proceeds to repay debt and for growth capital.

In Progress

Safe Bulkers Inc.

Morgan Stanley, BofAML, Credit Suisse, Evercore

$37

In an overnight offering company issued 5 million shares at $6.50/share, a discount of 9.09% from the prior day close. Proceeds will be used for vessel acquisitions, capex, and for general corporate purposes, including debt repayment. Green shoe exercised in full adding 4.875M in proceeds.

Done

Costamare Inc.

Morgan Stanley, BofA Merrill Lynch

$106

In an overnight offering, company sold 7.5 \M shares at $14.10, a 8.97% discount to prior close, raising gross proceeds of $105.75M.Proceeds will be used for capex, including vessel acquisitions and general corporate purposes, including debt reapyment.

Done

Genco Shipping & Trading Ltd.

Morgan Stanley, Deutsche Bank, Jefferies, Credit Agricole CIB, DNB Bank, SEB, Knight/DVB

$53

Company sold 7.5M shares at $7.10/share. A discount of 13.5% raising net proceeds of $50.7M. Proceeds will be used for general corporate purposes.

Done

$19

In an equity offer underwritten by AMA Capital Partners, the company issued 14.7M shares at EUR1 each. AMA subscribed to 13.7M shares gaining a 49.9% interest.

Done

(US$ M)

Lloyd Fonds AG

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Deal Tables & Bond Prices continued

M&A and Joint Venture Deal Table

H

H = New

Acquirer, New Partners, or Parent Seller

Advisors

Dockwise Limited

ABG Sundal Collier, SEB Enskilda

Amount Target / New Company (US$ M)

Teekay Corporation

Grindrod Ltd.

W Partners

H Teekay LNG Partners L.P. H DFDS A/S Marine Containers H Textainer Limited

Parker Drilling

Dockwise offered NOK 9.3/share, a 22% premium for the outstanding shares of Fairstar. The latter has deemed the offer inadequete.

$455

Teekay Tankers Ltd

TK dropped down 13 oil and product tankers to TNK in a transaction valued at $455M.Consideration consisted of $25M of shares, priced at $5.60, in TNK raising TK's interest to 25% and assumption of term debt, revolver and interest rate swap.

Done

J/V with Vitol

Grindrod sold a 50% interest in Cockett Marine Oil to Vitol at an undisclosed price and agreed to form a joint venture, Leopard Tankers which will build 4 MR product tankers for delivery in the 1H 2013 wnd which will be managed commecially by Vitol.

Done

H = New Arrangers / Advisors

Amount (US$ M)

In Progress

Seaspan Marine and the Federal Done Government of Canada signed an umbrella agreement under which Sespan's shipyards will build $8 billion of non-combat vessels for the government. Company intends to divest its interest in its In Progress chemical tanker business, including 9 owned chemical tankers to Triton, a European investment firm.Consideration is $30M, of which 2/3 will be lent to the purchaser on a subordinated basis to pay down debt. Nordic will be left with 6 product tankers operating in pools.

$30

Bond Deal Table

Status

Fairstar Heavy Transport N.V.

-

Nordic Tankers A/S

Comments

$250

-

Seaspan Marine Corporation

Borrower

- = Updated

- = Updated Interest Maturity

Purpose / Remarks

Status

Rate

Pareto, Swedbank First Securities

116

5

Company raised NOK 700M (~$120M) in its first bond issue in Norway. The five year senior unsecured bonds are priced at NIBOR+5.25%. Proceeds will be used for general partnership purposes. The obligation will be swapped into USD.

Done

Nordea, SEB

83

4

Company issued NOK 500M of 5-year FRN senior unsecured bonds.Rated BBB-, bonds were priced at NIBOR+3.50%. Proceeds will be used for gen'l corporate purposes. First time entrant intends to use the bond market to diversify its funding sources.

Done

Wells Fargo, BofA Merrill Lynch, Credit Suisse

400

4.21%

10

Company sold $400M of fixed rate asset backed notes priced at 4.21%. The notes are fully amortizing with a scheduled tenor of 10-years, but not to exceed 15-years. Proceeds will refinance the 2010-1 Notes and for gen'l corporate purposes.

Done

Barclays Capital

125

9.13%

6

Add-on offering to 9 1/8% senior notes due 2018; proceeds to be used to fund cash tender offer for $125m 2.125% convertible senior notes due 2012

In Progress

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Deal Tables & Bond Prices continued

Bank Debt Deal Table

H H H H H H H

H = New

- = Updated

Borrower

Arrangers / Buyers

Amount Pricing / Purpose / Remarks (US$ M)

Hercules Offshore, Inc.

Deutsche Bank, Credit Suisse, Goldman, Sachs, UBS, Amegy Bank, Capital One, Comerica Bank, Natixis

75

Senior secured revolving credit facility due 2017; spread varies based on leverage ratio and may be charged at the + ABR + 400-500 bps or the eurodollar rate 300-450 bps; commitment fee of 75 bps.

Aker DOF Deepwater AS

DNB, DNB Livforsikring

41

Senior secured loan to finance the AHTS N/B Skandi Atlantic.

Grieg Shipping II AS

DNB, Handelsbanken, Sparebanken Rogaland

34

Pre- and post delivery1st Mortgage loan to finance open hatch bulkcarrier.

Golden Ocean Group Ltd

DNB, Scotiabank

Pacific Drilling

Citi, DNB, Credit Agricole, ABN AMRO, Nordea, SEB, DVB, Fokus Bank, NIBC

200

Funding to support the temporary importation bonds for 2 ultra-deepwater drillships; functions as add-on to existing project financing arrangement.

Delek Drilling

HSBC, Barclays

400

Limited recourse project financing to fund repalyment of 2010 bridge loan and t ofinance the company's share in the development plan of the Tamar Project; spread varies over course of project

Avner Oil Exploration

HSBC, Barclays

400

Limited recourse project financing to fund repayment of 2010 bridge loan and company's share in the evelopment plan of the Tamar Project; spread varies over the course of the project; subject to cash sweep

Dor Gas Exploration

HSBC, Barclays

102

Limited recourse project financing associated with the development of the Tamar Project

-

Lease Deal Table

H = New

1st priority cross-collateralized loan over 4 vessels for pre- and post-delivery financing.

- = Updated

Lessee

Lessor(s)/Advisor(s)

Offshore Accommodation IS

Pareto Project Finance

$94

Diana Containerships Inc.

APL (Bermuda) Ltd

$60

Odfjell SE

Tianjin Economic-Technology Development Area

PB Offshore I DIS

RS Platou Finans

$8

Company will enter into BBHP with JP Knight to lease a 2002 built AHT. Vessel to be upgraded by Vestland Marine, the disponent owner to meet Petrobras' requirements fo offloading support. Vessel to be delivered to Petrobras under a 4+4 time charter.

Atlantic Gas IS

Pareto Project Finance

$40

Norwegian partnership, led by Anthony Veder Group, with a 25% interest, purchased for $38.4M the MGC Rene built in 2002 from Geogas, who agreed to bareboat it back for 2 years w/ 6 month option. Called capital $10.7M, uncalled capital $5M, bank loan of $24.7 (64%) and sellers credit of $4.3M.

Seaspan Corporation

MSC Mediterranean Shipping Co.

-

Seaspan bareboat chartered two of the four Maersk 4,800 TEU vessels for five years with a $5M purchase obligation. Rate for 1st two years is $10K/day increasing to $14.5K for the remaining period. Company incurred a loss of $8.9M and is finalizing the deal on the last two under the same terms.

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Amount (US$ M)

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Structure / Pricing / Comments Partnership agreed to purchase 3 offshore accommodation barges for $90MM enbloc from defaulted owner Marine Subsea. Vessels to be chartered to African Offshore Services for 10 years. All vessels l-t time chartered to Sonangol & Total. Commercial manager ADS Shipping. Equity $40M, bank debt $54M. Company purchased 2 Panamax containerships built in 1995 and 1996 for $30M each and chartered them back for 2 years at a rate of $24,750/day with two 1-year options. Odfell Terminals Nangang (Tianjin), a j/v of Odfjell and TEDA, to develop a terminal with 3 berths and storage capacity of 150K cu.m in Nangang Industrial Zone at a cost of $160M. Odfjell will own 49% and be the operator. Operations commence Q2 2014.

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Deal Tables & Bond Prices continued Jefferies – High-Yield Shipping Bonds Offer Price

YTW

STW

Maturity

Ratings

Call Date

Call Price

SHIPPING American Commercial Lines (ACLI)

Private

B2 / B

12.5% Secured due '17

112.000

6.99%

680

Jul-17

B2/BB-

07/15/13

106.250

10.625%/11.375% Sr PIK Tgl Nts due '16

92.000

14.26%

1,365

Feb-16

Caa1/B-

02/15/13

105.000

05/29/12

105.125

05/25/12

103.750

American Petroleum Tankers (AMPETR)

Private

10.25% Sr Sec due '15 Berlian Laju Tanker (BLTAIJ)

105.000

7.49%

731

May-15

Suspended

7.5% Sr Nts due '14 CMA CGM (CMACG)

– / B-

23.000

B1/B+ -/-

106.72%

10,644

May-14

Private

–/D B3 / B-

8.5% Sr Nts due '17

60.500

21.96%

2,108

Apr-17

Caa2/CCC

04/15/14

104.250

8.875% Sr Nts due '19

64.000

18.20%

1,705

Apr-19

Caa2/CCC

04/15/15

104.438

11/15/13

106.000

any time

MW+37.5

02/01/15

103.688

10/22/14

100.000

Genco (GNK)

NYSE: GNK, Market Cap: $233 mm

5% Sr Nts due '15 General Maritime (GMR)

68.000

2.775

103.250

39,392

Nov-17

10.74%

939

Feb-19

WR/NR

6.56%

81.500

13.73%

573

Feb-19

36.22%

B3/B –/–

1,337

Dec-14

NYSE: EXM, Market Cap: $159 mm 47.000

B2/BBB2 / B

NYSE: EXM, Market Cap: $1,352 mm

1.875% Sr Nts due '27 Hapag-Lloyd (HPL)

Ca / NR

NASDAQ: GLDD, Market Cap: $440 mm

5% Sr Nts due '14 Excel Maritime (EXM)

394.96%

–/–

-/-

87.250

7.375% Sr Sub Nts due '19 Dryships (DRYS)

Aug-15

Private

8.04% Sr Sec due '19 Great Lakes Dredge & Dock (GLDD)

1,788

NYSE: GMR, Market Cap: $1 mm

12% Sr Nts due '17 Golden State Petro (GOLDEN)

18.37%

–/–

–/– WR / NR

3,588

Oct-27

Private

–/– – / BB-

9% Sr Nts due '15

103.000

7.99%

763

Oct-15

B3/B

10/15/13

104.500

9.75% Sr Nts due '17

99.500

9.87%

886

Oct-17

B3/B

10/15/14

104.875

01/15/13

108.156

11/01/13

104.313

Marquette Transportation (MARTRA)

Private

10.875% Secured due '17 Navios Maritime Acquistion (NNA)

106.000

8.93%

834

Jan-17

NYSE: NNA, Market Cap: $121 mm

8.625% Sr Sec due '17

http://www.marinemoney.com

-/-

92.500

v

10.45%

B3/B–/–

943

Marine Money Freshly Minted

Nov-17

v

B2/B

Thursday, April 26, 2012

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Page 9

Deal Tables & Bond Prices continued Jefferies – High-Yield Shipping Bonds continued Offer Price

YTW

STW

Maturity

Ratings

Call Date

Call Price

SHIPPING CONTINUED Navios Maritime Holdings (NM)

NYSE: NM, Market Cap: $402 mm

–/–

8.875% Sr Sec Nts due '17

103.000

7.88%

734

Nov-17

Ba3/BB-

11/01/13

104.438

8.125% Sr Nts due '19

88.250

10.59%

923

Feb-19

B3/B+

02/15/15

104.063

Navios South American Logistics (NAVSAL)

Private

9.25% Sr Nts due '19

90.500

04/15/14

106.938

11/15/13

105.875

Norwegian Cruise Line (STRC)

11.25%

986

Apr-19

Private

11.75% Sr Sec due '16 Overseas Shipholding Group (OSG)

–/– B3/B+ -/-

116.000

4.60%

437

Nov-16

NYSE: OSG, Market Cap: $332 mm

B2/BB B3 / B-

8.75% Sr Nts due '13

95.250

12.12%

1,188

Dec-13

Caa1/B-

any time

MW

8.125% Sr Nts due '18

74.250

14.80%

1,367

Mar-18

Caa1/B-

NC

MW+50

7.5% Sr Nts due '24

66.000

13.27%

1,112

Feb-24

Caa1/B-

NC

NC

Royal Caribbean Lines (RCL)

NYSE: RCL, Market Cap: $5,747 mm

Ba1 / BB

7% Sr Nts due '13

104.500

2.90%

271

Jun-13

Ba1/BB

NC

NC

6.875% Sr Nts due '13

106.125

2.89%

266

Dec-13

Ba1/BB

NC

NC

5.625% Sr Nts due '14

102.750

3.95%

381

Jan-14

Ba1/BB

NC

NC

11.875% Sr Nts due '15

122.000

4.44%

397

Jul-15

Ba1/BB

NC

NC

7.25% Sr Nts due '16

107.750

5.14%

445

Jun-16

Ba1/BB

NC

NC

7.25% Sr Nts due '18

108.000

5.63%

451

Mar-18

Ba1/BB

NC

NC

7.5% Sr Nts due '27

101.500

7.34%

501

Oct-27

Ba1/BB

NC

NC

05/28/12

100.000

Ship Finance International Ltd. (SFL)

NYSE: SFL, Market Cap: $1,102 mm

8.5% Sr Nts due '13 Stena AB (STENA)

100.000

B1 / BB

8.24%

815

Dec-13

Private

B3/B+ Ba2 / BB+

7% Sr Nts due '16

100.500

6.11%

597

Dec-16

Ba3/BB+

05/28/12

101.167

6.125% Sr Nts due '17

99.000

6.37%

569

Feb-17

Ba3/BB+

any time

MW+50

5.875% Sr Nts due '19

90.000

7.81%

670

Feb-19

Ba3/BB+

any time

MW+50

7.875% Sr Nts due '20

97.000

8.40%

708

Mar-20

Ba3/BB+

any time

MW+50

any time

MW+50

NM

NM

05/29/12

101.500

Teekay (TK)

NYSE: TK, Market Cap: $2,598 mm

8.5% Sr Nts due '20 Trailer Bridge (TRBR)

104.500

82.000

616

Jan-20

NM

92.000

v

12.74%

B2/BBCaa3 / NR

NM

Nov-11

NASDAQ: ULTR, Market Cap: $59 mm

9% Sr Sec due '14

http://www.marinemoney.com

7.71%

NASDAQ: TRBR, Market Cap: $2 mm

9.25% Sr Sec due '11 Ultrapetrol Limited (ULTR)

B1 / BB-

B3 / B-

1,239

Marine Money Freshly Minted

WR/NR

Nov-14

v

B3/B-

Thursday, April 26, 2012

v

Page 10

Deal Tables & Bond Prices continued Jefferies – High-Yield Shipping Bonds continued Offer Price

YTW

STW

Maturity

Ratings

Call Date

Call Price

12/15/12

105.875

03/15/17

103.188

SHIPPING CONTINUED United Maritime Group (UNMTGR)

Private

11.75% Secured due '15

-/-

105.000

US Shipping (USPZ)

8.38%

814

Jun-15

Private

B3/B -/-

L(2.%FLR)+720 1L TL-Exit due '13

92.000

16.25%

1,573

Aug-13

–/–

L(2.%FLR)+50 2L TL-Exit due '13

30.000

111.66%

11,013

Aug-13

–/–

Windsor Petroleum Transport

Private

7.84% Secured due '21

-/-

60.000

16.71%

1,494

Jan-21

Caa1/B

SUPPLY VESSELS Gulfmark Offshore (GMRK)

NASDAQ: GMRK, Market Cap: $1,266 mm

6.375% Sr Nts due '22

101.250

Hornbeck Offshore Services (HOS)

6.17%

Ba3 / BB-

458

Mar-22

NYSE: HOS, Market Cap: $1,436 mm

B1/BBBa3 / B+

8% Sr Nts due '17

108.000

4.68%

447

Sep-17

Ba3/BB-

09/01/13

104.000

5.875% Sr Nts due '20

99.625

5.93%

433

Apr-20

Ba3/BB-

04/01/16

102.938

Seacor Holdings (CKH)

NYSE: CKH, Market Cap: $1,952 mm

Ba1 / BB+

5.875% Sr Nts due '12

102.000

1.08%

96

Oct-12

Ba1/BB+

any time

MW+12.5

7.375% Sr Nts due '19

107.250

6.14%

465

Oct-19

Ba1/BB+

any time

MW+50

This Weeks Winners Dry

Wet

Type (dwt)

Value

Supra (60k)

29.2

Week Change Year Change 1.85%

-11.60%

Panamax (80k)

29.8

1.50%

-18.23%

Type (dwt)

Value

Container

Week Change Year Change

Suezmax (160k) 54.1

0.00%

-19.96%

Type (teu)

Value

Week change Year Change

Feedermax (750) 15.9

0.70%

-13.91%

P-Panamax (7,000)58.2

0.31%

-45.47%

Sub Pmax (2,500) 26.2

0.31%

-45.47%

Panamax (4,250) 40.9

0.29%

-45.48%

This Weeks Losers Dry Type (dwt)

Value

Wet

Week Change Year Change

Type (dwt)

Value

Container

Week Change Year Change

Cape (180k)

41.3

-0.39%

-23.01%

VLCC (310k)

83.1

-0.24%

-16.00%

Handy (30k)

21.5

-0.46%

-20.37%

Aframax (110k)* 41.0

-0.27%

-28.98%

MR (50k)

33.1

-7.37%

-15.88%

LR1 (75k)*

30.9

-21.01%

-28.99%

Type (teu)

Value Week Change Year Change

Handy (1,400)

22.2

-0.94%

-37.16%

All values are in USD millions and are for standard specification resale vessels from top quality yards. Effects of depreciation have been removed for "like by like" comparison over the time period. www.vesselsvalue. *LR1 and Aframax values have been affected by an upgrade in the valuation algorithms for these sectors only.

http://www.marinemoney.com

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Marine Money Freshly Minted

v

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Forum Schedule 2012/2013 MARINE MONEY FORUMS AND CONFERENCES As the premier provider of ship finance news, data and analysis, Marine Money hosts the world’s most important ship finance forums and conferences. Whether we are in New York, Tokyo, Greece, Singapore, Oslo or anywhere else where the formation of capital for shipping is taking place, Marine Money conferences provide the most educational and best networking opportunities available in the industry.

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Athens

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May 2, 2012

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May 10, 2012

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Istanbul

May 31, 2012

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Oslo

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September 18, 2012

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Monaco

September 19, 2012

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Rio de Janeiro

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11th Ann. Marine Money Week Asia

Singapore

October 17, 2012

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Athens

November 2012 TBA

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Busan

November 2012 TBA

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New York City

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Shanghai

January 24, 2013

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London

February 2013 TBA

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Hamburg

February 2013 TBA

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Hong Kong

March 2013 TBA

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Dubai

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Marine Money Freshly Minted

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