Ship Finance: Deal Structures, Emergence of Private Fund Lenders, Ships as Collateral, Maritime Liens, and Financial Covenants
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss ship financing structures common in traditional bank loans, the emergence of private fund as a financing source, and deal terms that may vary for private fund lenders. The panel will also discuss documentation and filing of ship mortgages, maritime liens, financial covenants, and special concerns regarding the international shipping aspect that may affect the transaction.
Outline
- Anatomy of ship finance loan
- Borrower structure
- Payment terms, amortization
- Security/maritime liens
- Financial covenants
- Ship covenant
- Default scenarios and mitigating factors
- Special considerations relating to the global nature of the business
- How fund financing might differ from a traditional bank loan
- Structuring flexibility
- Equity exit option
Benefits
The panel will review these and other key issues:
- In what respects is ship financing similar to the financing of other income-producing assets?
- Where should a ship mortgage be filed, and what are the key components of the instrument?
- What factors have contributed to the retreat of traditional bank lenders and the emergence of private equity lenders?
- What additional risks relating to a shipping business' global operation must be taken into account by the lender?
Faculty
Hoyoon Nam
Partner
Seward & Kissel
Mr. Nam primarily devotes his time to the representation of financial institutions and borrowers in connection with... | Read More
Mr. Nam primarily devotes his time to the representation of financial institutions and borrowers in connection with bank financing and restructuring transactions with a particular focus on matters of interest to clients in the transportation industry. He is experienced in other corporate transactional matters ranging from securities, mergers and acquisitions, private equity, joint ventures and corporate governance matters.
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Michael S. Timpone
Partner
Seward & Kissel
Mr. Timpone is the head of the Firm’s Transportation Finance Group, a cross section of attorneys within the Firm... | Read More
Mr. Timpone is the head of the Firm’s Transportation Finance Group, a cross section of attorneys within the Firm from the Corporate Finance, Corporate Securities, Business Transactions, Litigation, Bankruptcy and Tax Departments with expertise on matters of interest to clients in the transportation industry. He devotes a large part of his time to the representation of U.S. and non-U.S. banks and other institutional lenders as well as borrowers in connection with secured loans and other financing transactions, as well as corporations and other business entities as borrowers in these transactions. Mr. Timpone has worked on matters ranging from the formation of joint ventures, mergers and acquisitions, asset finance transactions, registered and unregistered securities transactions, to restructurings.
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