KKR, Borealis Hustle Nine Container Ships

Bomar Rissen, one of six container ships in Borealis’ current fleet

 The joint venture between KKR Special Situations Group of Kohlberg Kravis Roberts & Co. L.P. (USA) and Borealis Maritime Ltd. (UK) has signed an agreement with Frankfurt-based Commerzbank to buy nine
container vessels financed by the bank. USD 216 million proceeds will be used for the redemption of loans. “This transaction is the second successful capital markets portfolio transaction in Deutsche Schiffsbank unit within the space of one year, and this despite an ongoing difficult market environment in the international shipping markets,” said Stefan Otto, divisional board member NCA Deutsche Schiffsbank.

As recently as December 2013 Commerzbank had sold a credit portfolio encompassing 14 chemical tankers. In the framework of the run-down strategy of the NCA segment, in the first seven months of 2014 it was possible – in addition to natural credit maturities – to sell a total of approximately 70 ships through individual transactions with a total credit volume of approximately USD 699 million.