- NNA throws a curveball with a backstop-type offering, around 35M in new shares @ $2.85/sh toraise ~$100M. I'm guessing a portion will be used to for debt pay-down/vessel impairment,and some for new vessels (at least, down-payments for newbuilds)- TNK announced results today (1/21) with the company taking a significant impairment charge.The more intriguing item though, IMO, is the switch to a fixed dividend. That eliminates thewhole upside potential that TNK used to have when the stock price got pummeled.
Think JF will be putting capital into FRO, or just let it go. Wouldn't be good for the group.http://www.bloomberg.com/news/2013-02-22/frontline-may-lack-...
Couldn't open the link, so I don't know the details mentioned.Think JF will be putting capital into FRO, or just let it go. Wouldn't be good for the group. Depends on the time-frame. - If FRO needs funds in 2013, I'm thinking he would consider some type of stop-gap measures.Why? A majority of the vessels in the FRO fleet belong to SFL (22) and Frontline 2012 (10),and Frontline 2012 hasn't started its fleet ramp-up. Somewhere along the way, Frontline 2012 willstart operations. At that stage, the stage opens and JF has a lot more options. For example,with another chartering entity available, he could slowly migrate the SFL fleet over fromFRO. Currently, he does not have a team, other than FRO, to manage crude oil tankers.- In mid-2014 or so, he can start building out a staff for Frontline 2012, probably includingsome of the existing FRO staff. That's when the FRO entity can exit the tanker market.The convertible bond can likely be taken care off in 2015, via an equity stake in Frontline 2012. Before then, let those bond-holders sweat through uncertainty to earn their 4.5% interest.
How come I can't give a post more than one rec????jz
Hohum:Any thoughts on:http://www.archerwell.com/http://www.deepseasupply.no/http://www.sevandrilling.com/section-8-14-sevan-drilling_in_...??All trade in Oslo. I wonder if they are likely to become interesting, given interest by JF..
Well, though I don't actively follow them directly, my impressions based on interactions withother JF-backed entities (#1 & #3 with SDRL, #2 with SFL) is#1: Has been hurting SDRL's results.#2: Fairly steady work, just average returns on the assets#3: Recent infusion of capital, SDRL participated. SDRL counts this as an investment, butif these guys hint at growth, SDRL could probably acquire them. But again, there has tobe hint of growth.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |