Maritime Partners, a supplier of maritime financing options primarily centered on Jones Act vessels, has introduced the profitable completion of the inaugural capital markets issuance of vessel asset-backed securities (ABS) by MP 2023 LLC, its managed affiliate. This transaction was the primary ABS issuance composed solely of inland marine vessels.
MP 2023 LLC issued an combination principal quantity of $235.3 million of its MP 2023-1, Class A Notes, with a coupon of seven.167% over an anticipated 7-year time period. The transaction is secured by a portfolio of 316 inland marine vessels with a good market worth of roughly $372.3 million and their related long-term bareboat charters. The Notes acquired an ‘A’ score from each DBRS, Inc. and Kroll Bond Rating Agency, LLC. Proceeds from the transaction have been used to pay down current debt, amongst different functions.
“We believe that with this ABS transaction, Maritime Partners and its affiliates now have access to the lowest cost of capital in the inland marine industry,” mentioned Bick Brooks, co-founder and CEO of Maritime Partners.
This transaction represents a big milestone for the agency and is anticipated to strengthen Maritime Partners’ capital construction and additional solidify its standing as a frontrunner within the trade. With new entry to the ABS market, Maritime Partners anticipates using the construction it now has in place for future issuances that align with the long-life nature of the underlying inland marine vessel property.
The financing was led by ATLAS SP Partners, which was launched in early February 2023 and is led by CEO Jay Kim, beforehand Head of Securitized Products Group at Credit Suisse.
“We are proud to partner with Maritime Partners on this first-of-its-kind issuance, a creative solution that leverages the company’s unique portfolio of assets to provide access to low-cost capital,” mentioned Shailesh Deshpande, Head of ABS Transportation Origination.
