Author Topic: SSW - Seaspan  (Read 137535 times)

petec

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Re: SSW - Seaspan
« Reply #510 on: September 20, 2018, 07:06:52 AM »
filed yesterday:
https://www.sec.gov/Archives/edgar/data/1332639/000119312518277358/d616840dex33.htm

6,000,000 new pref shares @ 8% ... guess it's better than 10%

There must be an immediate need for the capital now?  Alternatively, does this tie into the new revolving facility, ie need for cash on hand?

Also announced repayment of loans on several vessels - may have something to do with that.


walkie518

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Re: SSW - Seaspan
« Reply #511 on: September 20, 2018, 07:50:58 AM »
filed yesterday:
https://www.sec.gov/Archives/edgar/data/1332639/000119312518277358/d616840dex33.htm

6,000,000 new pref shares @ 8% ... guess it's better than 10%

There must be an immediate need for the capital now?  Alternatively, does this tie into the new revolving facility, ie need for cash on hand?

Also announced repayment of loans on several vessels - may have something to do with that.
guess the prefs are easier to manage than the revolvers and gets the company away from using "debt" ... not sure if it's cheaper, though?

petec

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Re: SSW - Seaspan
« Reply #512 on: September 20, 2018, 09:11:06 AM »
No, nor me.

Amused at the reaction today on DB downgrade. The wall of cash is still coming, and a downturn would create great opportunities for Sokol.

Schwab711

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Re: SSW - Seaspan
« Reply #513 on: September 20, 2018, 11:51:01 AM »
Long-run, I bet SSW is right that there will be further consolidation, which they will probably benefit from. In the short-run, it does seem like margins are going to be impacted by IMO 2020 (assuming the industry does comply with regulations). Especially since SSW seems to have missed the boat on scrubber installs and will be forced to purchase lower-emission fuel or take the fines.

petec

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Re: SSW - Seaspan
« Reply #514 on: September 24, 2018, 03:04:51 AM »
Long-run, I bet SSW is right that there will be further consolidation, which they will probably benefit from. In the short-run, it does seem like margins are going to be impacted by IMO 2020 (assuming the industry does comply with regulations). Especially since SSW seems to have missed the boat on scrubber installs and will be forced to purchase lower-emission fuel or take the fines.

Yes. This is something Iíve been meaning to do more work on. Do you have a feel for how significant these costs are going to be? I havenít found managementsí comments on recent calls very helpful.

Schwab711

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Re: SSW - Seaspan
« Reply #515 on: September 24, 2018, 06:11:45 AM »
Long-run, I bet SSW is right that there will be further consolidation, which they will probably benefit from. In the short-run, it does seem like margins are going to be impacted by IMO 2020 (assuming the industry does comply with regulations). Especially since SSW seems to have missed the boat on scrubber installs and will be forced to purchase lower-emission fuel or take the fines.

Yes. This is something Iíve been meaning to do more work on. Do you have a feel for how significant these costs are going to be? I havenít found managementsí comments on recent calls very helpful.

Not really yet. It seems like it will be a bigger deal than many first thought. I've been trying to figure it out across all vessels. I posted hoping someone would correct me. I think SSW planned to not comply and then most of their competitors made plans to comply so they are a bit gun-shy right now (and probably why they issued preferreds instead of debt).

Best I can tell, SSW will have to use low-sulfur bunker fuel for at least the first year or two on the large majority of their vessels (currently going for ~30% more than regular fuel).

petec

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Re: SSW - Seaspan
« Reply #516 on: September 24, 2018, 09:52:28 AM »
Thanks. Thatís useful.

bizaro86

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Re: SSW - Seaspan
« Reply #517 on: September 24, 2018, 11:29:20 AM »
I thought this piece on scrubbers was pretty helpful.

https://seekingalpha.com/article/4207153-2020-sulfur-cap-scrubbers-gain-favor

petec

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Re: SSW - Seaspan
« Reply #518 on: September 25, 2018, 02:18:59 AM »
I thought this piece on scrubbers was pretty helpful.

https://seekingalpha.com/article/4207153-2020-sulfur-cap-scrubbers-gain-favor

Thanks-I find that quite compelling on the anti-scrubber side!

John Hjorth

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Re: SSW - Seaspan
« Reply #519 on: September 25, 2018, 02:28:08 PM »
Perhaps a hint [I'm not sure, because I haven't searched or looked for it]. DFDS A/S [DFDS.CPH] ran a program for scrubber mods/retrofits for a part of their wessels a few years back. Perhaps you might find some comments about the economy in doing so in the DFDS financials a few years back - I would look at 2012 - 2016.

- - - o 0 o - - -

Please don't scrub my butt, if you find nothing!
ĒIn the race of excellence Ö there is no finish line.Ē
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai