Happy Holidays! Nice to hear from youI think that must be the reason the yields on his companies remain so high - not just the volatility of the tanker market, but - is Frederiksen going to move stuff - debt,equity, tankers etc - from one entity to another?RWS Looking at Fredriksen's history of the last decade or so, it seems the asset or debt movementsseem to be more about unlocking value. This has been the case when FRO grew too big after theoriginal Golden Ocean (tanker and dry bulk) acquisition. He created two spin-offs, Ship Finance Intl (SFL)- tankers and OBO, and Golden Ocean - Dry bulk, and had FRO restart as, mostly manager,of the tanker fleet. The ITCL subsidiary is more an anchor now, but it once was a decent stable entity that allowed FRO to meet its working capital requirements. The Golar partnership (GMLP)was about unlocking value from Golar (GLNG). I think in one recent presentation, GLNG mgmtsuggested that the dropdowns had unlocked $900M of value from GLNG. JF accomplished that withoutdiluting GLNG, and has added a significant newbuild fleet of LNG tankers to GLNG book.Of course, he now needs a way to pay for those 11 LNG tankers and two FSRUs. If one canstomach it, that's the risk side of the JF journey. IMHO, the high yield is part of thetrade-off for going on that ride. Again, not for everyone.
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