Unless You Were
Incommunicado,
This Surely Cannot
Come as a Surprise
Dealmaker of the Year Award
By George Weltman
Winners:
Scorpio’s Robert Bugbee and RS Platou
e knew we were on to
something last March
when in a morning meeting
with Erik Helberg in Platou’s
Oslo office, we were interrupted by a phone call. Erik
shrugged apologetically and
informed me that it was Robert
calling for his daily morning
briefing. It was early morning
back in New York and there
were ships to buy and ships to
fix but here was Robert staying
on top of the capital markets as
well. Fast forward to Autumn
and another visit to Platou’s
offices, this time in New York,
to meet with Marius Halvorsen.
We walk into the office and on
display in the entrance was a
shrine with multiple tombstones and prospectuses for
deals done for Scorpio and
Navios, but the latter is a story
for another time and place.
What an unlikely duo to be cast
as this year’s champions of the
capital markets. Dare we risk
raising the image of the comedy
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Marine Money
team of Abbot and Costello
doing their “who’s on first”
routine, but Robert and Erik
already know the answer to that
question.
But, before we proceed further,
we must put on our hair shirt.
Never in our years of
publishing this issue have we
singled out an investment bank;
it would be like picking out
one’s favorite child. And believe
me we were loath to do so for a
number of reasons. First and
foremost, we know that getting
a deal done is a team effort and
requires lots of help from many
other bankers. Then, too, we
can testify that all the investment banks had great years
having reviewed their accomplishments in writing this issue.
Nevertheless, with a gun to our
head, circumstances forced our
hand. In terms of simple
numbers, concentration and
repetition of deals, Platou and
Scorpio were conjoined twins.
Unlike its competitors, Platou
had the home court advantage
of being in Oslo, which saw the
rise of the Norwegian OTC
market and the possibilities it
provided for quick and simple
execution.
While not the most fervent of
believers in Eco, having a prejudice for cheaper modern
tonnage preferring a capital cost
advantage, we remain in awe of
Roberts and Erik’s achievements this year. Was there a
week when Robert didn’t place
an order or Erik sell some
stock? We could go on and on
but words cannot express their
accomplishments as well as the
numbers can. To grasp the
reality in the fullest, we begin
with a comparison of the
owned fleets, wet and dry,
including newbuildings, as of
March last year with the current
fleet. Then we look at how this
massive undertaking was
funded focusing mainly on the
equity raises, which were
conservatively leveraged with
bank debt conforming to the
traditional ship finance model.
Reserving a place in the Guinness Book of World Records,
Scorpio not only placed orders
for a record number of ships,
but also likely raised more
equity than the GDP of some
countries, ~$1.9 billion in total
for the two companies. And
this does not even take into
account the ordering of
VLGCs, which were sold on to
Dorian LPG in exchange for
shares.
We apologies to the writers of
the film, Naked City for the
misuse of the following quote.
"There are eight million stories
[about Robert] in the naked
city. This has been one of
them." And what a story it is Dealmaker of the Year? Q.E.D.
www.marinemoney.com
Equity Placements
Date
Transaction
Transaction Type
Company
Leader(s)
Other Participants
Listing Equity Raised Comments
January
E-FO
Scorpio Tankers Inc.
RS Platou Markets AS
Clarkson Capital Markets, DNB,
Evercore, Seward & Kissel,
Davis Polk & Wardwell
NYSE
$230
STNG sold just over 30 million shares at $7.50 apiece. The net proceeds of the offering are
expected to be used for vessel acquisitions, working capital, and other general corporate
purposes.
March
E-FO
Scorpio Tankers Inc.
RS Platou Markets AS
DNB Markets, Clarkson Capital
Markets, Evercore, SEB
NYSE
$235
The Company priced the offering of 29,012,000 shares at $8.10/share, a discount of ~5%
from the prior day’s close. The shares closed at $8.20 down only 3.87% on volume of
1.7 million shares affirming the successful pricing of the offering.
May
E-FO
Scorpio Tankers Inc.
RS Platou Markets AS
DNB Markets, Global Hunter, Evercore, NYSE
CIS Capital Markets, ABN AMRO,
DVB Capital Markets, SEB
$300
Scorpio has sold 36,144,578 shares of common stock priced at $8.30/share, a discount of
5.5% from the prior day closing price of $8.78. The offering had negligible impact on the share
price, which closed the day at $8.82/share up $0.04. Proceeds will be used for vessel
acquisitions, working capital and other general corporate purposes. As was the case last time,
the book was strongly divided between new investors wanting to come in and support from
the strong shareholders already invested in the company
June
E-PP
Scorpio Bulkers Inc.
RS Platou Markets AS
N-OTC
$250
Proceeds to finance the construction of a series of eco-bulkers as well as chartering
operations and general corporate purposes.
July
E-FO
Scorpio Tankers Inc.
RS Platou Markets AS
NYSE
$219
Proceeds are expected to be used for further product tanker and LPG carrier acquisitions,
working capital, and general corporate purposes. The overallotment option was fully used
bringing net proceeds to $209.6 million.
September
E-Other
Scorpio Tankers Inc.
September
E-PP
Scorpio Bulkers
RS Platou Markets AS
November
E-PP
Scorpio Bulkers
RS Platou Markets AS
December
E-IPO
Scorpio Bulkers
Deutsche Bank
Evercore, Global Hunter Securities,
Securities, Credit Suisse, Stifel, Credit Agricole CIB
RS Platou Markets
UBS, Global Hunter, UBS
J.P. Morgan Asset Management
Total
ABN AMRO Bank, Evercore Group,
Global Hunter Securities,
Skandinaviska Enskilda Banken
$45
Scorpio agreed to purchase 4 MR tanker newbuildings for a total of $151 million, with
approximately 30% of the consideration paid in new shares issued to the sellers, Ceres,
Valero, and a group of institutional investors advised by J.P. Morgan Asset Management.
The remainder of the purchase price will be paid to the yard with cash-on-hand and bank debt.
The four vessels each carry a charter, one for two years and the others for one year.
N-OTC
$300
Proceeds will be used to partially finance construction of a series of eco-bulkers and for
general corporate purposes. Shares to be listed OTC in Oslo.
N-OTC
$300
Proceeds will be used to partially finance the company’s eco-bulker newbuildings and for
general corporate purposes.
NYSE
$350
Proceeds to fund newbuilding vessel capital expenditures. Upsized from $151 million.
$2,229
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Marine Money
19
The Scorpio Navy
Incident Response • Media Training • Drills • Reputation Building • Litigation Support
PROTECTING REPUTATION
The leading global communications
network for the shipping industry
MTI Network is the world’s leading media response and public
information service dedicated to the shipping industry. Today
some 6,000 vessels including gas carriers - tankers – bulkers –
reefers – roros - offshore rigs and support vessels and passenger
ships are directly registered with the MTI Network, offering 24/7
global reputation protection services. The Network provides a
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range of media training courses and drills in support of OCIMF’s
TMSA initiative and works closely with leading P+I Clubs,
Maritime Law Firms, Class Societies and Maritime Organisations.
MTI Network Web Site Address:
http://www.mtinetwork.com
MTI UK • MTI USA • MTI Benelux • MTI Italy • MTI Spain •
MTI Greece • MTI Scandinavia • MTI South Africa • MTI Brazil •
MTI Canada • MTI Hong Kong • MTI Singapore • MTI Japan •
MTI Australia • MTI India • MTI Middle East • MTI Turkey
Incident Response • Media Training • Drills • Reputation Building • Litigation Support
Marine Money
SCORPIO TANKERS
March 2013
January 2014
Name
Launch/Delivery Name
Launch/Delivery
Owned Vessels
Owned vessels
Handymax
STI Highlander
2007
STI Highlander
2007
MR
STI Amber
2012
STI Amber
2012
STI Topaz
2012
STI Topaz
2012
STI Ruby
2012
STI Ruby
2012
STI Garnet
2012
STI Garnet
2012
STI Onyx
2013
STI Onyx
2012
STI Sapphire
2013
STI Sapphire
2013
STI Emerald
2013
STI Emerald
2013
STI Beryl
2013
STI Le Rocher
2013
STI Larvotto
2013
STI Fontvieille
2013
STI Ville
2013
LR1/Post-Panamax
Noemi
2004
Noemi
2004
Senatore
2004
Senatore
2004
STI Harmony
2007
STI Harmony
2007
STI Heritage
2008
STI Heritage
2008
Venice
2001
Venice
2001
LR2
STI Spirit
2008
STI Spirit
2008
Newbuilds Currently
Under Construction
Handymax
2451
2Q14
Hull no. 2451
Q3-14
2452
2Q14
Hull no. 2452
Q3-14
2453
2Q14
Hull no. 2453
Q3-14
2454
2Q14
Hull no. 2454
Q3-14
2462
3Q14
Hull no. 2462
Q3-14
2463
3Q14
Hull no. 2463
Q3-14
HMD Handymax
3Q14
Hull no. 2464
Q3-14
HMD Handymax
3Q14
Hull no. 2465
Q3-14
Hul no. 2476
Q3-14
Hull no. 2477
Q3-14
Hull no. 2478
Q3-14
Hull no. 2479
Q3-14
Hull no. 2499
Q4-14
Hull no. 2500
Q4-14
MR
2369
2Q13
Hull no. 2389
Q1-14
HMD MR
2Q13
Hull no. 2390
Q1-14
HMD MR
2Q13
Hull no. 2391
Q2-14
HMD MR
3Q13
Hull no. 2392
Q3-14
HMD MR
3Q13
Hull no. 2449
Q2-14
2389
3Q13
Hull no. 2450
Q2-14
2390
1Q14
Hull no. 2458
Q2-14
239
1Q14
Hull no. 2459
Q2-14
2392
2Q14
Hull no. 2460
Q3-14
2449
2Q14
Hull no. 2461
Q4-14
2450
2Q14
Hull no. 2492
Q2-15
2458
2Q14
Hull no. 2493
Q2-15
2459
3Q14
HMD MR#25
Q3-14
2460
3Q14
HMD MR#26
Q1-15
2461
4Q14
HMD MR#27
Q1-15
51138
2Q14
HMD MR#28
Q1-15
51139
2Q14
Hull no. S5122
Q1-14
51140
3Q14
Hull no. S5123
Q2-14
51141
3Q14
Hull no. S5124
Q2-14
51142
3Q14
Hull no. S5125
Q2-14
51143
4Q14
Hull no. S1138
Q2-14
51144
4Q14
Hull no. S1139
Q3-14
51144
4Q14
Hull no. S1140
Q3-14
51145
4Q14
Hull no. S1141
Q3-14
Hull no. S1142
Q3-14
Hull no. S1143
Q3-14
Hull no. S1144
Q4-14
Hull no. S1145
Q4-14
Hull no. S1167
Q1-15
Hull no. S1168
Q1-15
Hull no. S1169
Q1-15
Hull no. S1170
Q1-15
LR2
5703
3Q14
Hull no. S703
Q3-14
5704
3Q14
Hull no. S704
Q3-14
5705
3Q14
Hull no. S705
Q3-14
5706
4Q14
Hull no. S706
Q4-14
5709
4Q14
Hull no. S709
Q4-14
5710
4Q14
Hull no. S710
Q4-14
DSME LR2
4Q14
Hull no. S715
Q1-15
DSME LR2
4Q14
Hull no. S716
Q1-15
Hull no. 5394
Q4-14
Hull no. 5395
Q4-14
Hull no. 5398
Q2-15
Hull no. 5399
Q2-15
VLCC
VLCC #1
Q3-15
VLCC #2
Q4-15
VLCC #3
Q4-15
VLCC #4
Q1-16
VLCC #5
Q1-16
VLCC #6
Q4-16
VLCC #7
Q4-16
SCORPIO BULKERS
Newbuilds Currently
Under Construction
Capesize
SBI Puro
Q1-15
SBI Valrico
Q2-15
SBI Maduro
Q3-15
SBI Belicoso
Q4-15
SBI Corona
Q1-16
SBI Diadema
Q2-16
SBI Estupendo
Q3-16
SBI Montesino
Q2-15
SBI Magnum
Q3-15
SBI Montecristo
Q3-15
SBI Aroma
Q3-15
SBI Cohiba
Q4-15
SBI Habano
Q4-15
SBI Lonsdale
Q1-16
SBI Partagas
Q1-16
SBI Parejo
Q2-16
SBI Toro
Q2-16
SBI Tuscamina
Q2-16
SBI Churchill
Q4-15
SBI Perfecto
Q4-15
SBI Presidente
Q1-16
SBI Panatela
Q1-16
SBI Robusto
Q2-16
Kamsarmax
SBI Cakewalk
Q2-14
SBI Charleston
Q3-14
SBI Samba
Q1-15
SBI Rumba
Q3-15
SBI Electra
Q3-15
SBI Flemenco
Q3-15
SBI Rock
Q4-15
SBI Twist
Q1-16
SBI Salsa
Q3-15
SBI Merengue
Q1-16
SBI Capoeira
Q3-15
SBI Conga
Q3-15
SBI Bolero
Q3-15
SBI Carioca
Q4-15
SBI Sousta
Q4-15
SBI Reggae
Q1-16
SBI Lambada
Q1-16
SBI Zumba
Q1-16
SBI Macerena
Q2-16
SBI Swing
Q3-16
SBI Jive
Q3-16
SBI Parapara
Q1-16
SBI Mazurka
Q2-16
Ultramax
SBI Echo
Q2-15
SBI Cronos
Q3-15
SBI Tango
Q4-15
SBI Hermes
Q1-16
SBI Hera
Q2-16
SBI Zeus
Q2-16
SBI Poseidon
Q3-16
SBI Apollo
Q3-16
SBI Bravo
Q1-15
SBI Antares
Q1-15
SBI Maia
Q3-15
SBI Hydra
Q3-15
SBI Hyperion
Q2-16
SBI Tethys
Q2-16
SBI Leo
Q2-15
SBI Lyra
Q3-15
SBI Subaru
Q3-15
SBI Ursa
Q4-15
SBI Athena
Q1-15
SBI Pegasus
Q3-15
SBI Orion
Q4-15
SBI Thalia
Q4-15
SBI Hercules
Q1-16
SBI Kratos
Q1-16
SBI Perseus
Q2-16
SBI Samson
Q2-16
SBI Phoebe
Q2-16
SBI Phoenix
Q3-16
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