Use of fund
Growth Capital, Refinance, Acquisition
Headquartered in Switzerland with US$ 170M in revenue and US$ 12M of net income (2016E), this company operates in dry bulk shipping and trading market. This proposition is to finance US$ 100M in equity to a top charterer with proven track record across market conditions, that has both physical and unique Forward Freight Agreement experience in the dry bulk shipping market, to generate alpha.
The investment program is designed to profit regardless of shipping rates and vessel price trends; premised on buying shipping vessels in bulk at market prices and using absolute informational advantage in contracting its vessels and creating alpha in FFA markets during the inevitable annual disconnects. The funds are to be used for vessel purchases (US$ 80M) and for working / trading capital requirement (US$ 20M).
The company is recognized as an A-class operator in dry-bulk shipping and has strong relationships with key commodities trading houses. The company has limited counter party risk as all of its customers maintain investment grade credit and a perfect payment record to the company. The major trade routes followed by this charterer are US Gulf, Brazil, & Argentina -> Egypt, Northern Europe, China. In 2015 the company had 18 distinct customers across 170 completed charters. The company's top customer business segments by freight % are agribusiness (64%) and commodity & trading (27%).