Re: Update on the convertible bond - Giant One Step Close ( Scroll down on market text )
Giant One Step Closer --- from TradeWinds
John Fredriksen took another step in creating a single giant bulker company today when Knightsbridge Shipping secured a secondary listing on the Oslo Stock Exchange.
The move is part of a long-awaited merger between Knightsbridge and Golden Ocean that should be completed within in a couple of weeks.
A special meeting of shareholders to approve the merger is set for this Thursday, with Oslo-listed Golden Ocean likely to be dissolved by the end of March.
The enlarged company is then pencilled in to start trading under the Golden Ocean name in both the US and Oslo on 1 April.
The new Golden Ocean will be one of the largest bulker owners listed in the US with 72 vessels to its name.
Fredriksen first mentioned the idea of combining his two public bulker companies last year in an interview with TradeWinds.
The shipowner later said in these pages that the merger "was only the beginning".
Last week Knightsbridge completed the purchase of the final 12 capesize newbuildings from Frontline 2012, which will see that company become a pure-play tanker owner.
Herman Billung, who will be chief executive of the merged company, told Reuters today: “It’s pretty brutal what’s happening in the market right now, but in many ways it’s the best medicine for the industry.”
He added: “Scrapping has been at record levels so far this year with 34 capesize vessels already taken out of the market. That’s more than for the whole year of 2014 and we are only three months in.”
“And if you look at the order book for 2017 it’s empty. No one will order ships in the market we have now,” Billung told the newswire.
“I think we will see the market improving somewhat when we move further in to the second quarter”, he added.
It is speculated that Frontline 2012 will be merged with Frontline to also pull Fredriksen’s quoted tanker fleets under one umbrella.
ANDY PIERCE IN LONDON 23 March 2015, 16:09 GMT
You might follow some of your own advise....wow indeed!
The negative side effects from long term use of aspirin is well known, and there is not a current aspirin mediciation that does not have GI issues.
It is precisely to overcome the dangers of taking aspirin that PA was developed. This addresses an UNMET medical need.
When taken regularly over years, even very small amounts of aspirin can lead to the formation of stomach and intestinal ulcers. Aspirin is the oldest of what are known as “non-steroidal anti-inflammatory drugs.” It works by helping to thin and improve blood flow. But that is double-edged sword. The heart benefits are outweighed by increased risks of stomach and brain bleeding.
You speak of alternatives. BS. There are none. Tylenol contains acetaminophen, which is toxic to the liver.
Ibuprofen is an NSAID (non-steroid anti-inflammatory drug). Advil and Motrin are common OTC ibuprofen drugs , but these create side effects such as nausea and dizziness, hypertension, DNA damage, hearing loss, and miscarriage. The bottom line is that none of these OTC options are meant for long term use, for which aspirin regimes were intended fro heart benefits, among other benefits emerging.
Some speak of homeopathic options, but there is no FDA evidence for their efficacy. Whether its Kratom, or Devils Claw. Some might take Cannabis, but noone which goal is to pursue a long term regime to gain the heart benefits of aspirin, or recovery from stroke, remotely entertains these approaches.
Do your homework. Oh, and if you do have divine wisdom---as you suggest--- on the alternative that brings all the benefits of aspirin while removing its adverse impacts, then please market it, commercialize it, and go public.....it buy your stock and consume your meds!
JL writes: " but be realistic, there are tons of safer aspirin products"
The whole point of Yousprala is that THERE ARENT SAFER ASPIRIN PRODUCTS!!
Their 20-F filing indicates 3 of the acquired Samco VLCC will remain on long term charters thru 2015.
The Samco China is locked till Q22021. Sacco Redwood chartered till Q12016, and the Samco Taiga is on charter till Q42015.
Two others come off charter in Q2, I believe.
Two currently trade spot.
4 other DHT VLCC trade spot, and a fifth (DHT Ann) is linked to Market rates
1 Suezmax (Trader) is spot.
1 Suezmax (Target( on charter till Q1 2016
Both Afra on charters till Q1 2017.
Unclear if any of these have profit share.
Really, FRONTLINE 2012 is the looser in this, with the transaction being in shares owned, not a cash transaction. Given that Cape new builds cost about $55M, the 12 capes have a cost of about $600M. But VLCCF shares were trading at about $15 at the time of the agreement.
Knightsbridge Shipping Limited ("Knightsbridge" or "the Company") (VLCCF) is pleased to announce that the second and final stage of its previously announced vessel acquisition transaction with Frontline 2012 Ltd. has closed. Knightsbridge has issued 31 million shares to Frontline 2012 Ltd. in exchange for 12 Cape size bulk carrier newbuildings.
The refiners must be printing money with the large spread of WTI to Brent.
That spread should only grow over the next few months, and make for strong tailwind to the refiners.
Take a real look, and not a "strong buy" look.
Their vessel values are plummeting, risking loan-to-value.
Those vessels are not finding, and will no secure, contracts.
The have moderate exposure to PBR, but the real issue is that there will be few tenders.
The Prospector deal was ill timed, as Arctic drilling is among the most expensive propositions whose economics only make sense for oil trading above $90/bl.
In the meantime, between stacked rigs, devalued equipment, and debt maintenance costs, the company has few options
agree with a small edit:
replace "IS" with "WAS"
or if that offends, then ---
replace "$23" with "$6"
either edit works, tia
This is the case for the entire sector. 5 yrs ago, when oil was climbing and rig contracts were rising rapidly, and no one foresaw the coming US shale revolution, these UDW rigs were being ordered for $600-$700M per unit, placed on the credit card which had low interest and easy revolver. The assumption was that $500,000/day rates were a shoe in for ever. So, MLPs were formed, in which a spinoff unit payed $1B per drop down from the parent, using blend of equity and debt, allowing the parent to raise cash for yet more Newbuilds, and that was repeated. The MLP paid dearly, but with a fat 5-yr contract, and with unbounded optimism to be able and role over in a yet stronger charter market down the road, the math made sense.
With cash break even being about $300,000s/ day, the ROI looked great, dividends could be generous, and grow with each new accretive DropDown.
But the shale revolution has changed this cozy recipe . First, UDW is now seen as a high cost provider, and UDW oil is not economical in most sites for oil below $50/day. US shale is now, after 5 yrs of figuring how to scale production, economical even below oil at $50. And the proven reserve is immense. U S Shale is now the worlds swing producer, and can respond very fast to market conditions. It is therefore unlikely that oil will return to $100/ barrel. With a glut of UDW equipment , unwanted to boot, idle times soar and day rates plunge to perhaps cash break even. That means very low return on the $700M investment. To boot, rig valuations are at risk, and older equipment is almost worthless except as scrap.
So, PGN with legacy equipment trades to $1/ SH today, after doing IPO at $15 just last August ( a different world ago)
VTG, with modern equipment but heavy debt trades to 0.30/SH., down 90%.
SDLP, which hit a new 52- wk low, will soon have to eliminate the only reason to invest in this MLP....it's dividend. It's share price will run into single digit territory.
Your point is central to the dilemma faced by UDW sector, and investors in that space.
Shale oil is now profitable at a much lower level than 2-4 yrs ago. And, the proven reserve of shale oil at economical market prices is much larger than assumed just a few yrs back.
Shale therefore is becoming an abundant, and low cost provider. That puts a lid of the upper end of oil prices for the foreseeable futures, and also switches the dynamics of which players are most likely to have to strand some of their oil, until oil prices rise appreciably. It won't be shale, like many first thought.
It will be tar sands, Arctic, and UDW, and therein lies the trouble for ORIG.
Indeed...PGN as something like 15-20% contract exposure to Petrobras, which is not where you want to be for a partner at this time.
Indeed. New equipment will hold up, but the old vessels are doomed to the ash heap of history, as someone once said in a slightly different context.
This is the reason that shares have lost 50% in the last 2 weeks, as the reality of a protracted down turn, with little hope of a V-shared recovery, is sinking in...