Alternative funding
Transcription
Alternative funding
BETWEEN VISION AND REALITY The quest for alternative funding HANSA FORUM Simon Madej Hamburg, 20 November 2014 HSH-NORDBANK.COM My goal today My purpose of talking with you today is to discuss Alternative Funding sources for your firm 2 The outcomes that I am seeking ► Size matters in shipping ► Ensure that you understand the benefits of consolidation ► Answer any questions you may have at this time 3 Past vs. Present Assets Corporates KG funding Alternative funding ► Non-recourse ► Recourse ► Vessel focus ► “Shipping” ► Private ► Institutional investors / limited in size focus money 4 Alternative Funding Public debt (Bonds) Pros ► You get money from people you do not know ► You pay a fixed interest rate ► You have a bullet payment at maturity 5 Alternative Funding Public debt (Bonds) Cons ► Is your cash flow good enough? ► Requires ► Rating a detailed look into your financials / external scrutiny 6 Alternative Funding Private Equity Pros ► Lets you ► You get money from people you just met do not have regular payments ► Enables you ► Lets you to obtain other forms of financing buy new vessels / companies etc. 7 Alternative Funding Private Equity Cons ► High return expectations ► Transparency ► Loss of level (some) control ► Partnership on time 8 Alternative Funding Public Equity (IPO) Pros ► Lots of money from investors you do not know ► You can use shares to grow & build your firm ► Increased visibility 9 Alternative Funding Public Equity (IPO) Cons ► Risk of loss of control ► Success / failure is market driven ► Short-term thinking / perspectives 10 10 Between vision… 5 - 2007 Global issue volume (€bn) 25 2008 2010 Bond Volume Lehman collapse 20 2009 2011 2012 Public Equity 15 10 5 - 2007 2008 2009 2010 Bond Volume 2011 2012 2013 2014 Public Equity Institutional money has been used for years by shipping groups worldwide… Source: Capital IQ 11 10 … and reality 5 - No. of global issues since '07 180 2007 2008 2009 2010 Bond Volume 2011 2012 Public Equity 150 120 90 60 30 - … but has up to now had limited importance for Public Equity Bonds German ship funding activities Source: Capital IQ 12 German shipping bonds Issue Date 2012 2013 2010, 2010, 2013 Maturity 2017 2018 2015, 2017, 2018 Volume €60m € 275m €480m, $250m, €400m Coupon 6.875% 8.875% 9.00%, 9.75%, 7.75% Yield to Maturity 96.67% (act. price: €18) 14.04% 5.02%, 8.71%, 7.41% Ranking Senior secured Senior unsecured Senior unsecured Issuer rating @ Issue: A (now insolvent) @ Issue: BB Actual: CCC S&P: B+ Moody’s: B2 Source: Corporate information, OnVista 13 Listed German shipping groups Asset class Containers Container, dry and liquid bulk Founders HCI, Hammonia Reederei König & Cie., HSH Nordbank Fleet 13 vessels (2,500 to 7,800 TEU) 13 vessels (6 tankers, 4 bulkers, 2 containers, 1 car carrier) IPO 2007 2006 Market cap. €3.4m (Price: €25.0) €7.5m (Price: €5.0) Ownership Institutional Investors: 90.5% Free Float: 9.5% Institutional Investors: 97% Free Float: <3% Source: Corporate information, Finanztreff 14 The way forward for German shipping companies ► The right organizational set-up ► Scale of owned assets ► Critical mass of vessels under management 15 Where do you see yourself? Focus of German shipping companies Ship owning Ship management Logistics / access to freight 16 Questions? ► Based on you own experience, what questions do you have for me at this time? ► 1. ► 2. ► 3. ► 4. ► 5. 17 Thank you for your attention. Contact details: Simon Madej Executive Director HSH Nordbank AG Corporate Finance, M&A + 49 (0)40 3333 15768 [email protected] HSH-NORDBANK.COM Disclaimer This document has been prepared by HSH Nordbank AG (hereinafter referred as „HSH“ or „HSH Nordbank“) for information purposes only. The information provided herein is based on data and documentation provided by HSH or the current vessel owners. The explanations, opinions and estimates in this document reflect current circumstances and are subject to change over time and are preliminary and tentative only. HSH considers the information in this document to be reliable, but neither they nor any other third party have conducted a thorough examination or any investigation necessary to insure that it is correct and complete. Therefore, neither HSH or its executive bodies, senior staff nor employees accept any legal liability in connection with this document or any information provided therein , and all such liability id hereby expressly disclaimed. Accordingly, neither HSH including is subsidiaries, nor any of their connected persons make any representation or warranty, express or implied, with respect to the accuracy or completeness of such information and the projections contained in this document nor accept any responsibility or liability related thereto, if and to the extent legally possible. This document is provided on condition that it shall be treated as strictly confidential and nothing shall be used as, in whole or in part, even with deviations, without the prior written consent of HSH in each instance. Use of this document is subject in all respects to the provisions of the Confidentiality Letter signed in advance by the recipients of this document. The recipient and all persons to whom this document is made available shall agree to the terms of the Confidentiality Letter before making use of this document. Nothing in this is, or should be relied on as a legal, tax, or economic advice or recommendation . Each recipient of this document is recommended to make his own legal, tax, or economic assessment of the matters contained herein through internal or external counsel. This document does not constitute an obligation to enter into a purchase agreement and does neither from any offer or invitation for an offer nor shall it provide the basis of any investment or disinvestment decision. Each recipient of this document is recommended to make his own independent investigation , inquiry and assessment prior to investment decision. By accepting this document you agree to bound by the above conditions and limitations. HSH Nordbank AG Corporate Finance, M&A Rosenstraße 11 20095 Hamburg Phone: +49 40 3333 15700