The Week in Review

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					                                         The Week in Review
            VOLUME 3
            ISSUE 48
     December 13, 2007

                                         It’s been a particularly interesting week in the ship finance       this office as the only man who made a billion twice in a
                                         markets. In the public debt markets Golden Ocean                    decade. And EIAC will be his co-investor in the new enti-
                                         announced a $200 million convertible with ABG Sundal                ty as it tries for a hat trick.
 The Week in Review                      Collier and Nordea and Eimskip announcing a $545 mil-
              page 1                     lion debt issue and $145 million loan. Tallink also                 The aggregate consideration being paid is $778 million

A Transaction Revisited
                                         announced a new $212 million loan with Danske Bank                  consisting of $643 million payable in cash from EIAC’s
              page 5
                                         while National Chemical Carrier announced a new $392                trust fund (approximately $238 million) and borrowings
                                         million Shariah compliant debt facility with Samba                  under a credit facility to be negotiated and $135 million
  Back to the Futures                    Financial Group to fund 10 chemical tanker newbuild-                payable in the form of 13.5 million shares. In addition,
              page 7                     ings, the largest Saudi shipping deal ever done with a sin-         through a structured earn out, Vanship will be eligible to

       Deal Tables &
                                         gle bank. Trailer Bridge hired Jefferies to explore strategic       earn an additional 3 million shares in each of the first two

        Bond Prices
                                         alternatives for the sale of founding family members’               years following the merger based upon the achievement of
              page 8                     47.8% stake, worth nearly $70 million, and having already           certain EBITDA hurdles. Concurrently with the acquisi-
                                         acquired Oceania Cruises and a 50% stake in NCL, PE                 tion, EIAC will merge into the new entity, EIMC, which
Conference Schedule                      fund Apollo further committed to the cruise sector with             will be the surviving corporation.
             page 16                     the $367 million acquisition of Regent Seven Seas
                                         Cruises from Carlson Companies.                                     Concurrently with and contingent on the closing are a
                                                                                                             number of smaller and related transactions which impact
                                         The US equity markets this week, despite generally rough            the capitalization of the new company while sorting out
                                         conditions, welcomed Teekay Tankers with a top-range                the parties’ interests. Vanship has agreed to purchase up to
                                         price of $19.50 per share; the deal traded up over $20              5 million units (1 share + 1 warrant) at the original IPO
                                         before market close. The positive reception was a testament         offering price of $10 to the extent necessary to secure
 Nora Huvane, Managing Editor                to the relationship Teekay’s management has built up with           financing for the acquisition.
   George Weltman, Publisher             US investors as well as the success of Teekay’s financial
                                         engineering.                                                        On the other side, Mr. Sagredos, the President and COO

                                         Two Birds with One Deal
 SUBSCRIPTION OFFICE                                                                                         of EIAC, will exercise his option and convert convertible
       UNITED STATES                                                                                         debt in the amount of $2.865 million into 268,500 units
     One Stamford Landing
            Suite 214                    Approximately 16 months after it went public in July                at the original conversion price. He will also transfer to
     62 Southfield Avenue
   Stamford, CT 06902 USA                2006, Energy Infrastructure Acquisition Corp.                       Vanship at no cost 425,000 warrants purchased by an affil-
    Phone: +1.203.406.0106
     Fax: +1.203.406.0110                (“EIAC”), a blank check company, announced on                       iated company prior to the IPO. Mr. Sagredos and Mr.
                                         December 3rd that it had entered into a definitive agree-           Theotokis, EIAC’s chairman, have agreed to terminate
      To learn more about
  subscribing, please contact us         ment to purchase through a newly formed wholly owned                stock options to purchase 3.585 million shares, exercisable
        via your preferred
   medium at the office listed           subsidiary (“EIMC”) all of the outstanding shares of SPVs           at $0.01, that were issued to them prior to the IPO.
  above. Annual Subscription is
     $995 US plus postage.               owning nine VLCCs from Vanship Holdings Limited                     Finally, in exchange for his givebacks, Mr. Sagredos will be
                                         (“Vanship”), a company controlled by Fred Cheng and                 issued 1 million units of EIMC, which are identical to
 Freshly Minted may be photocopied
 by license only. Electronic or physi-   Charles Vanderperre. Certain news reports also suggest              those issued at the IPO.
 cal reproduction or forwarding of
 this document in whole or in part       that the Clipper Group may also have an interest in these
 is strictly prohibited, even for
 internal purposes.                      vessels or the company itself. Through this SPAC transac-           Based upon all the transactions above being executed, but
 While Marine Money has taken            tion, public investors will have the opportunity to invest in       excluding the earn-out, on a pro forma basis, there will be
 great care in the production of this
 publication, no liability can be        a tanker business focused on the Asian markets with two             46,990,247 total shares outstanding on an undiluted basis.
 accepted for any loss incurred in
 any way whatsoever by any person        astute investors and Messrs. Cheng and Vanderperre have             On a fully diluted treasury method basis and based on cash
 who may seek to rely on the infor-
 mation contained herein.                effected an IPO of their private business thereby getting           in trust of approximately $10.30 as of September 30,
                                         access to the public markets. Mr. Cheng is now renown in            2007, there will be 53,247,054 shares outstanding. On an

                     O      Marine Money Freshly Minted              O     Thursday, December 13, 2007           O     Page 1
The Week in Review continued
EIMC Proposed Fleet
  Vessel                    Design           DWT            Year Built        Value*             Vessel          T/C Rate              Expiry
  Shinyo Alliance            S/H            248,034           1991            $70.8               DH1            $39,500               May-14
  C. Dream                   D/H            298,570           2000            $105.0              DH2            $39,000               Feb-17
  Shinyo Kannika             D/H            287,175           2001            $108.8              DH3            $43,800               Dec-16
  Shinyo Ocean               D/H            281,395           2001            $108.8              DH4            $38,500               Dec-16
  Shinyo Jubilee             S/H            250,192           1988            $59.4               DH5            $28,900               Sep-09
  Shinyo Splendor            D/H            306,474           1993            $78.4               SH1            $29,800               Jan-17
  Shinyo Mariner             S/H            271,208           1991            $70.8               SH2            $32,000               Jun-10
  Shinyo Navigator           D/H            300,549           1996            $89.8               SH3            $32,800               Mar-19
  Shinyo Sawako              S/H            275,616           1995            $86.0               SH4            $39,088               Dec-11
  *Morgan Stanley Commodity Shipping Report 12/10/07

undiluted basis, Vanship is expected to own approximately 39.4%          long-term charters seemed to be a winner at the time. Now with
and the company’s management 15.7% of EIMC’s outstanding                 VLCC rates AG-East approaching $200,000 per day one might
shares and on an undiluted basis, the ownership split is respectively    question that strategy but EIAC should not, as playing VLCCs in
37.0% and 14.5%.                                                         the spot market is a game for the big boys.

Public shareholders will receive a special dividend of $1.54 per share   Then there was the pollution incident in South Korea involving the
on the first anniversary of the consummation of the transaction.         M/T Hebei Spirit. Although not its fault, it was a single hull tanker
Insiders will waive the right to payment in order to facilitate this     trading in Asia, the last resting place of single hulls, and there will
payment to shareholders.                                                 no doubt be ramifications given the size and impact of the spill. Ole
                                                                         Slorer of Morgan Stanley noted in this week’s market report that
The fleet to be acquired consists of four single and five double hull    South Korea is a major user of single hull tankers along with China
VLCCs. The vessels have an average age of 12.4 years (approximate-       and Japan. The single hulls still face phase out in 2011 so fleet
ly 17 years for the s/h and 10 years for the d/h) and a combined         replacement will be an issue hence the entry of the company into the
cargo carrying capacity of 2.5 million deadweight tons. The vessels      public markets should facilitate a replacement program.
are all chartered out with an average remaining charter period of 6.3
years. This is weighted more favorably, as one would expect, to the      The inevitable question on everyone’s mind is whether it was a fair
double hulls, which average 9.2 years versus the single hulls, which     price? By definition, of course, it is since it was an arm’s length trans-
average approximately 2.8 years. The charter rates reflect the same      action negotiated between a willing seller and willing buyer. And
differential with the double hulls on average earning $37,940 and        one can be sure it was the most heavily negotiated part of the deal.
the single hulls $33,422. Three of the nine vessels have profit shar-    However trying to figure out the NAV of this fleet, for perspective,
ing. The details of the fleet are shown herein. So as to preserve con-   is a Herculean task given the relative scarcity of sales and that those
fidentiality, employment cannot be linked to a specific vessel.          that were done recently were purchased for conversion to VLOCs
                                                                         and hence were more influenced by cape prices. Compounding the
Following the combination, Vanships founders and principals,             difficulty of assessment was the fact that values remained strong
Captain Vanderperre and Mr. Cheng, will be appointed as non-             through a weak freight market and then of course improved concur-
executive Chairman and CEO respectively. The company will con-           rently with the recent freight boom. Furthermore, to add to the dif-
tinue to be run from Asia with technical management services pro-        ficulty is the extensive charter coverage attached to the fleet. And
vided by Captain Vanderperre’s Univan Ship Management, Ltd.              finally, what impact will the spill from the Hebei Spirit have on the
The nexus in Asia, given the economic growth that has occurred and       valuation of the single hulls? Cleaves gave us a point of reference in
future prospects in this region, leave the company extremely well        the reported (Week 47) charter-free sale of the M/T Crystal Beauty,
positioned to service the growing oil trade which has followed.          a 259,992 DWT tanker built in Japan in 1993 for $57.5 million.
                                                                         When compared to the Shinyo Jubilee, to which Morgan Stanley
Timing has a very interesting role in this transaction, both good and    assigned a value of $59.4 million, there was clearly a premium paid
bad. With the tanker market in the doldrums just two weeks ago,          given the age differential. But this could easily accounted for by the
locking in a deal with this visible earnings stream from first class     present value of the attached charter, the vessel’s condition and spe-             O     Marine Money Freshly Minted           O     Thursday, December 13, 2007              O     Page 2
The Week in Review continued
cial survey position. Given the parties involved and the structure of        ment Cardiff had held a small stake in the company, but this was
the deal with part of the payment in shares, we expect that at the end       upped by a full 30% with the acquisition of 51,778,647 shares at
of the day a small premium was paid.                                         NOK 43 apiece from London-based Cheyne Capital.

In connection with the acquisition, Maxim Group LLC and The                  Ingolf Gillesdale of Nordea called the purchase price “attractive”,
Investment Bank of Greece, the investment banking arm of                     viewing Ocean Rig as “very well positioned for record-rate, long-
Marfin Group, acted as financial advisors, New Century Capital               term contracts”. He sees Cardiff ’s entrance as a major investor as a
Partners LLC rendered the fairness opinion, and Loeb & Loeb                  positive for Ocean Rig and is optimistic about the potential for a
LLP (NY) and Vgenopoulos & Partners Law Firm (Athens) acted                  combination of Ocean Rig’s two deepwater rigs with the drillship
as legal advisors to Energy Infrastructure. Fortis Securities LLC            newbuildings Cardiff recently ordered.
acted as financial advisor and Watson, Farley & Williams LLP
(New York) and Lea & White (Hong Kong) acted as legal advisors               Ocean Rig, in the meantime, has secured a senior secured bank
to Vanship.                                                                  financing in the amount of $1,040 million, with an allowance for

Economou Oils his Empire
                                                                             the arrangement of an additional $200 million in unsecured debt.
                                                                             DnB NOR has been appointed as sole underwriter and bookrunner
It was announced last week that George Economou’s private vehi-              for this facility, the likes of which we haven’t seen announced since
cle Cardiff Marine acquired a 34% stake in Oslo-listed Ocean Rig.            the credit crunch hit hard in August. The new facility will replace all
While few would have doubted Mr. Economou’s access to free cash              of OCR’s existing debt while also providing significant further
or the attraction of the rig sector, at around $410 million the scale        financing capacity and reducing the company’s blended average
of the investment merits some discussion. Prior to the announce-             interest rate in the range of 1.2-1.5%.

Cash Flow Multiples by Vessel Type
                                                                                                     EBITDA Multiple
Ship Type               Sub-type*                               Charterfree            Spot        1-year TC 3-year TC           2003-06
                                                               Value (US$)                                                     Average Spot
VLCC                    Modern 300,000 dwt                   $125,000,000               5.0            7.0            8.1            5.5
                        Vintage 250-285,000 dwt               $59,000,000               2.6            5.4             -             3.1
Suezmax                 Modern 150,000 dwt                    $92,000,000               8.6            6.9            7.7            5.0
Aframax                 Modern 95-105,000 dwt                 $67,500,000               9.3            7.1            7.6            5.1
                        Mid-aged 95-105,000 dwt               $55,000,000               8.4            9.8            6.6            4.5
Clean Product           Modern 70-75,000 dwt                  $60,500,000              11.5            7.2            7.5            5.1
                        Mid-aged 30-35,000 dwt                $36,000,000               4.5             -              -             4.4
Dirty Product           Modern 45-47,000 dwt                  $52,000,000              9.9             6.9            7.6            4.9
Capesize               Modern 170,000 dwt                   $152,000,000                 2.6           2.7             4.4            8.9
                       Mid-aged 150,000 dwt                 $105,000,000                 2.1           1.9             3.0            7.7
                       Vintage 150,000 dwt                    $87,000,000                1.8           4.1              -             6.6
Panamax                Modern 73,000 dwt                      $92,000,000                3.4           3.4             4.4           12.5
                       Mid-aged 72,000 dwt                    $75,000,000                2.8           2.8             3.7           10.5
                       Vintage 60,000 dwt                     $46,000,000                1.9           2.1             3.6            7.5
Handymax               Modern 45,000 dwt                      $75,000,000                3.7           4.2             5.3           11.6
                       Mid-aged 42-45,000                     $61,000,000                3.0           3.4             4.4            9.7
Handysize              Modern 25-30,000 dwt                   $45,000,000                 -            3.4             5.3              -
                       Mid-aged 25-30,000 dwt                 $41,000,000                 -            3.1             4.9              -
                       Mid-aged 3,500 teu                     $49,500,000                4.8             -              -             6.2
*The ship Sub-type is associated with the charterfree market value of the vessel; all corresponding rate data is chosen using a "best fit" method.
** Average spot is 2001-2006
Data for ship values and market rates is sourced from Clarkson Research Studies.              O     Marine Money Freshly Minted              O     Thursday, December 13, 2007             O      Page 3
The Week in Review continued
What’s really interesting about this deal, however, is the movement      ply diversifying his portfolio of investments. Are public investors
of Mr. Economou’s money. In addition to driving capesize vessel val-     overpaying for vessels from private entities while the founder him-
ues over $150 million, his empire has been increasingly diversifying     self is moving his money elsewhere? It seems more plausible that
its investment base in recent months. Most recently, he has been         nothing so dramatic is taking place but Mr. Economou is very sim-
using public money to buy ships, through DryShips and                    ply taking advantage of market arbitrage. On the diversification side
OceanFreight, and private money to buy shares, in Top Tankers            we’ve noted the attractive prices of shares for both Top and Ocean
and Ocean Rig. The exception to this are two drillship newbuildings      Rig. On the dry side event taking into account the inflated values of
Cardiff contracted for in September of 2007 to be delivered in 2010      dry bulk vessels in today’s market, DryShips’ stock was trading at
and 2011 from Samsung Heavy Industries. Not only is the yard             127% of NAV on Monday according to estimates by Jefferies ana-
well respected, but the ships ordered are ultra deepwater units iden-    lysts. What that means is that a ship purchased at market price –
tical to the ships ordered by Seadrill, among others, according to       100% of NAV – can still add almost another 30% of its value to
Nordea’s Mr. Gillesdale, who has also suggested the possibility of a     DryShips’ shares in addition to be accretive to cash flow. So from a
combination of these with Ocean Rig.                                     value creation standpoint, new vessel purchases still make sense.

However Mr. Economou’s public company DryShips last week                 This also highlights an important ethical question: if Mr.
agreed to acquire a capesize vessel for around $152 million although     Economou is investing his personal money in undervalued tanker
it has also sold other vessels recently to realize substantial capital   stocks and the offshore industry, is it appropriate for him to spend
gains.                                                                   his public company’s money investing in dry bulk vessels at remark-
                                                                         ably high prices? It might well be. It all depends on the expectations
Also this week OceanFreight, heretofore a dry bulk company with a        of public investors. Insomuch as they are asking Mr. Economou to
diversification strategy, acquired its first tanker from Economou        provide a pure, spot-exposed dry bulk play with a high growth level,
interests. OceanFreight listed on the Nasdaq this past spring but in     he has given them DryShips. Public investors have not asked Mr.
the last few weeks lost two of its experienced executives, Bob Cowen     Economou to act as their portfolio manager – as good as he might
and James Christodoulou. Anthony Kandylidis, OceanFeight’s               be. It’s an interesting conundrum, where in order to provide a
sponsor and a nephew of Mr. Economou, has stepped in as CEO.             straightforward play for public investors, traditional asset-trading
                                                                         shipowners must often save their most profitable skills for their own
Using private money to acquire shares goes beyond the recent and         account.

                                                                         The Taxman Wins…..For the Moment
more substantial Ocean Rig acquisition to include 2.1 million Top
Tankers shares purchased in July of this year by Economou interests
for $14.3 million. This amounted to a 10% interest in the publicly-      On November 8th, a hearing, to pacify the minority, was held on
listed tanker company whose ailing share price many argue under-         the retroactive change to the Norwegian tax law in which it is pro-
values its assets. This under valuation could certainly make the com-    posed to tax owners’ profits that were previously untaxed under the
pany an attractive acquisition target for someone like Mr.               existing policy. In 1996, a tax regime was enacted where shipping
Economou, who could potentially even take the three dry vessels          profits were tax exempt so long as the Norwegian shipping compa-
Top recently agreed to acquire into one of his fleets, use the compa-    ny made no distributions to shareholders. In its place, the
ny as a public shell into which to sell his tanker fleet, or combine     Government (Socialist Left Party, Norwegian Labour Party and
Top’s tankers with his own into a focused company.                       Centre Party) put forth a proposal for a new shipping tax system
                                                                         modeled on the tonnage tax system prevalent in Europe. The cost of
In theory, it stands to reason that Mr. Economou could aspire to         the new tax system will be paid for by the retroactive tax of shipping
have his own conglomeration of public companies. Whether he will         profits from 1996 to today.
ultimately acquire the companies he has invested in and spin out his
empire into public entities with different sector focuses and varying    The results of the hearing were as expected and followed party lines.
levels of risk remains to be seen. OceanFreight is certainly a start,    Despite testimony from experts on constitutional and tax law as well
with its medium-term charter risk and double-digit yield. Only time      as a former Supreme Court judge who raised serious objections
will tell. In the meantime we can simply attempt to assemble the         against the retroactive change, the majority in the finance commit-
publicly reported pieces of the puzzle.                                  tee gave their recommendations in support of the legislation as put
                                                                         forth by the Minister of Finance, Kristin Halvorsen. The legislation
Appraising the Situation                                                 was sent to the main legislature where it was passed this month
One important question that stems from this is whether Mr.               effective from January 1, 2008. Let the lawsuits begin!
Economou is reducing his exposure to the dry bulk industry or sim-             O     Marine Money Freshly Minted          O     Thursday, December 13, 2007            O     Page 4
A Transaction Revisited
Protecting the Brand                                                     NYKLauritzenCool acquired the Great White Fleet, consisting of
Writing about deals is our stock in trade. But in a sense, our cover-    eight reefers and four container vessels, for $227 million and entered
age although thorough, detailed and analytic is, in a specific sense,    into a strategic shipping agreement with Chiquita. This agreement
incomplete. This became clear in talking to Eastwind Maritime’s          makes the alliance Chiquita’s preferred supplier in ocean shipping to
management last week about the Chiquita transaction they closed          and from Europe and North America. As part of the transaction,
last April. We were reminded that there is more to the deal than         Chiquita will time charter back 11 of the 12 vessels for seven years,
meets the eye. With the multitude of transactions in the market, it      with options for up to five years and one vessel for three years, with
is difficult to fathom the motivation or strategic implications of the   options for up to an additional 2 years. Together these vessels trans-
transaction itself. It’s not only about doing a deal, although often     port approximately 70% of Chiquita’s banana volume shipped to its
that is the case.                                                        core markets in the United States and Europe.

In this instance, the management of Chiquita clearly had issues. It      Concurrently, in a series of astute strategic moves, the company also
was under performing financially, had a highly leveraged balance         acquired Chiquita’s technical ship management division. As a conse-
sheet, faced stiff competition and had regulatory issues with the        quence, jobs were saved and the integration of the businesses was vir-
European Union. Moreover, despite efforts to expand its product          tually seamless ensuring the customer of continuity of service. Then
line, it was a company dominated by a single product that is very        in a bit of financial engineering, the new owners entered into a sale-
dependent on weather.                                                    leaseback of the conventional reefers with Mr. Kollakis’ Chartworld.
                                                                         This eliminated the investment but left an on-going charter obliga-
On the other hand, it had a world-renowned brand that could be           tion. Nonetheless, Eastwind is comfortable with the vessels and the
built upon. About four years ago, the board brought on Mr.               level of the obligation.
Fernando Aguirre to turn the company around. Mr. Aguirre’s for-
mer company was Proctor and Gamble, the premier marketing                Although both companies operate reefers, NYKLauritzenCool con-
company in the world. In his vision, Chiquita would, in like fash-       tributes the expertise with respect to bananas. It also had additional
ion, become a marketing and distribution company under the               tonnage which Chiquita could utilize, and they, in turn, agreed to
Chiquita brand. The company could then be pared down with such           charter-in a further seven vessels to meet the remainder of its core
tasks as growing and shipping no longer core activities.                 requirements. All told the joint venture is operating on behalf of
                                                                         Chiquita the eight vessels conventional reefers and four container ves-
Although perhaps no longer a core activity to the new company,           sels in the Great White Fleet, the seven additional reefers owned by
shipping of the product remains extremely critical to the business.      NYKLauritzenCool that were chartered-in as well as a variable num-
Bananas must be delivered in a timely fashion and with great care,       ber of vessels operating spot.
but transportation cost, which constitutes a large fraction of the
delivered C&F cost of the product, must be controlled.                   Eastwind retained control of the four container ships and operates
Outsourcing this service was not a simple task. A simple sale-lease-     them within its existing fleet of containerships. The operation of these
back of the venerable Great White Fleet would bring in cash and          vessels gives them insights into the container reefer market, which has
lighten the balance sheet but not do much else. The infrastructure       significant influence on pricing in the refrigerated trades.
and overhead would remain part of Chiquita.
                                                                         Not only has the transaction provided Eastwind with a window of
Chiquita’s management determined it was in its best interests to         opportunity to get into the banana business, it may offer further
have a strategic shipping partner take over the ships and more           opportunities for growth. The conventional reefer fleet requires signif-
importantly the shipping activity. They needed to find someone           icant reinvestment to sustain itself. Together with its partner, they see
who understood the reefer business, could competitively operate          the potential for the design of a more modern conventional refriger-
ships to its standard and provide the service it expected. And final-    ated ship that will be a viable competitor to the container vessels.
ly, there was that soft, touchy feely trait of trust that is required    Since shipyards’ profit margins are lower on reefer ships than on other
when turning over a critical and long-standing member of the fam-        tonnage--owing to the small size and the substantial component of
ily to an outsider.                                                      outside supplied equipment-- it is likely that a large number of new-
                                                                         buildings will need to be packaged in order to bring the per ship price
In the reefer business there were few possible candidates to choose      down. To commit to such a program will require the right timing as
from as the business has consolidated due to historic difficult mar-     well as an organization of sufficient size.
kets. At the end of the day, an alliance of Eastwind Maritime and             O     Marine Money Freshly Minted          O      Thursday, December 13, 2007            O     Page 5
A Transaction Revisited continued

The reefer business is different. It operates in a small niche market,    with the knowledge that there is no risk to the brand. From a finan-
which requires lots of sweat. Both the grower and distributor care        cial standpoint, it booked a gain of approximately $100 million and
about the product that is both fragile and of high value. The opera-      its balance sheet was de-leveraged with the assets coming off and the
tor must deliver a quality product in a timely fashion. Competition,      associated liability becoming a lease obligation. And last but not
too, is different. Producers have the choice of an alternative means      least a favorable outcome of this re-structuring would be a reduced
of moving their product, the reefer container. The container ships        equity base from which higher returns could be generated.
offer greater speed but elapsed time to delivery can be greater for
container ships because of their sequences of scheduled port calls.       It was also a great deal for Eastwind and NYKLauritzenCool. As the
Logistics is easier with containerized goods versus breakbulk, which      strategic supplier to a major fruit company, they gain a long-term
requires additional handling when cargo is transferred to a trailer for   profitable relationship, which will provide further growth opportu-
onward inland transportation.                                             nities both from the standpoint of expanding its Chiquita business
                                                                          as well as third party opportunities with their new partner. They are
So at the end of the day what does all this mean? Quite simply,           now in the banana business, which provides further diversification
Chiquita shifted its transportation requirement and its associated        within the reefer niche. Finally, it may lead to further consolidation
overhead to a third party supplier who will provide at a minimum          within the industry.
the same level of service at competitive if not cheaper cost. It can
focus on implementing its new strategy as a marketing company             And who said writing up a deal was simple?              O     Marine Money Freshly Minted          O     Thursday, December 13, 2007            O     Page 6
Back to the Futures
By Mike Reardon, Imarex Inc., Email:

As last week’s article hit the newsstands, the tanker market was already on the move. Only a few hours earlier, the singe-hulled Hebei Spirit
collided with a barge off the Korean coast, spilling approximately 10-12,000mt of crude oil into the sea. The astute FFA traders in our midst
recognized that Owners of double-hulled tonnage would be able to raise their rates significantly – and started buying. Even without an all-
out ban on single hulls, incremental measures taken by regional maritime authorities - or commercial chartering departments, could have an
effect on the commercial viability of the single skin species. Crude tanker FFAs have been on the rise since that time with only minimal
interruption, for both near and long dated contracts. The physical spot market behaved in like fashion, with Owners quickly boosting spot
rates. VLCCs are currently earning up to $200,000/day – putting the tanker market back into the spot light.

The dry bulk side of the equation has gone into snooze mode, as the both the physical and paper markets have shown negligible energy.
Though rates are good and product is still moving, the market lacks direction. The FFA market for dry bulk is similarly adrift. If you want
volatility, you need to look towards the equities – which are more than willing to accommodate. A daily swing of six or seven percentage
points can be found with little effort. As the paper and physical markets have not provided any reasons for these swings, it appears the mar-
ket at-large is playing a material role. After seeing DRYS plunge from $130/share to $70/share in a matter of weeks, this volatility should
come as no surprise. The dry equities have since found some middle ground – with DYRS settling in the high $80s region, but these issues
still refuse to sit still for long.            O     Marine Money Freshly Minted           O     Thursday, December 13, 2007          O     Page 7
    Deal Tables & Bond Prices
    M&A and Joint Venture Deal Table                          # = New             = Updated  = For full analysis see Marine Money’s Asia Edition
    Acquirer, New Partners, or Parent Seller   Advisors                    Amount (US$ M)         Target / New Company             Comments

#   Trailer Bridge                             Jefferies                      Circa $69           5.8 million shares for sale      Exploring strategic alternatives to further
                                                                                                                                   enhance shareholder value as founding family

                                                                                                                                   members plan to sell their 47.8% stake

    Sea Star Capital                                                         $367 en bloc         26.05% in Minoan Lines;          Via share acquisition from Panayiotis

                                                                                                  34.70% in Hellenic Seaways       Laskarides; to be funded by bank loans

    Apollo Management                          Lehman Brothers,              Undisclosed          Regent Seven Seas Cruises        Acquisition from Carlson Companies

                                               Goldman Sachs

    Sea Invest                                                               Undisclosed          Petromarine                      Acquisition of second tanker company
                                                                                                                                   following Fouquet earlier this year to create

                                                                                                                                   28 tanker fleet dominating French market
    Cardiff Marine                                                            Circa $378          Increased stake in Ocean Rig     51.78 m share acquisition from
                                                                                                                                   Cheyne Capital Management ups
                                                                                                                                   Cardiff stake to 34.4%
    CMA CGM                                                                  Undisclosed          US Lines                         Acquisition of 7-ship liner company
                                                                                                                                   with turnover of $145m

    Energy Infrastructure                      Maxim, Investment Bank of        $778              VanShips                         Acquisition of 9 VLCC's from Fred
    Acquisition Corporation                    Greece (Marfin), Century                                                            Cheng and Charles Vanderperre
                                               Capital Partners, Fortis                                                            company
    Sovcomflot                                 Morgan Stanley                Reports vary         Majority stake of Novoship       Transfer by Russian government
                                                                                                                                   of majority stake in Novoship to
    Kohlberg Kravis Roberts                    Citigroup                       $1,330             97.6% stake in UN Ro-Ro          Turkey's anti-trust board approved
                                                                                                                                   sale of 11 vessel ro-ro owner and
                                                                                                                                   port operator
    Kaylee Maritime                                                             $108              Majority stake Global            79.3% of issued share capital acquired
                                                                                                  Oceanic Carriers                 from Solstice International and
                                                                                                                                   Tildough Holding

    Bond Deal Table                                           # = New             = Updated  = For full analysis see Marine Money’s Asia Edition
    Borrower                      Arrangers / Advisors         Amount      Interest Maturity        Purpose / Remarks                                                Status

                                                               (US$ M)      Rate

    Eimskip                       RBC Capital Markets             $545                              Debt issue                                                       Planned

    Golden Ocean                  ABG Sundal Collier,             $200     3.125% -     2012        Convertible bonds payable semi-annually;                         Planned
                                  Nordea                                               3.625%       To fund fleet renewal

   Pacific Basin                 Goldman Sachs                    400      3.30%       2011        To fund existing capital commitments and                          Done
                                                                                                    potential vessel acquisitions

    Precious Shipping             Undetermined                    $1,000    Undet.      Undet.      Shareholder approved bond offering for                         Postponed
                                                                                                    takeover and/or new tonnage

    Eitzen Maritime Services      Fearnley Fonds, Nordea       NOK 250     NIBOR        2010        To refinance current debt and for                              In Progress
                                                                           +3.05%                   general corporate purposes

    Excel Maritime                Deutsche Bank Securities        $150      1.88%       2027        Convertible at a premium of 55%; overallotment exercised          Done

   SK Shipping Europe PLC        Korea Development Bank           $50     LIBOR +
                                                                            110 bps
                                                                                        3 years     To fund overseas expansion                                        Done

    Sevan Marine                                                  $150                              To part finance the construction of a FPSO vessel              Rumoured

    Thorensen Thai                Deutsche Bank                   $170      2.50%       2012        Convertible bonds to fund fleet renewal/                          Done
                                  Luxembourg S.A.                                                   expansion program

    Aker Yards                                                     $71                 2009 and     Bond issues                                                      Planned
                                                                                         2010                   O         Marine Money Freshly Minted              O        Thursday, December 13, 2007                    O       Page 8
     Deal Tables & Bond Prices continued
     Equity Deal Table                                     # = New                   = Updated  = For full analysis see Marine Money’s Asia Edition
     Issuer                           Underwriters / Advisors                         Amount           Structure / Pricing / Comments                                   Status
                                                                                      (US$ M)

#    China Shipping Container Lines                                                    $2,100          Secondary share offering in Shanghai                              Priced
                                                                                                       priced at top of range

#    Top Tankers                      Deutsche Bank Securities, DVB,
                                      Oppenheimer, Cantor Fitzgerald
                                                                                         $72           Offering of 21 million shares to repay debt and
                                                                                                       fund acquisition of six drybulk vessels; 3,150,000

                                                                                                       share over-allotment option excercised in full

     Efilog                           Efibanca                                          $117           Launch of new Milan based private equity fund                    Approved
                                                                                                       to focus on shipping and logistics sectors

     Prosafe                                                                                           Planned split of Oslo-listed company into separate listed       Early Stages
                                                                                                       companies; Focused respectively on Accomodation and

                                                                                                       Service Rig business and Floating Production business

     Finaval SPA                      Banca Caboto and Unipol Merchant                Up to $60        IPO of 10.4 million shares in Milan and to                      Postponed

                                                                                                       institutional investors abroad

     Teekay Tankers                   Citi, Morgan Stanley, ML, Wachovia, DB,           $181           Spin-off by Teekay of 9 aframax tankers in                        Priced
                                      JPM, Dahlman Rose, Scotia, Johnson Rice                          10 million share NYSE IPO; Priced at top of

                                                                                                       range, $19.5/share
     JES International                ABN AMRO, OCBC Bank                             Up to $250       Seeking listing in Singapore for development of                 Early Stages
                                                                                                       new shipyard next to existing production facilities

                                                                                                       and to repay existing bank loan

     Mercator Lines Singapore         Merrill Lynch, Deutsche Bank                    Up to $163       To list in Singapore at lower S$0.76 target price in              Priced
                                                                                                       original range; To fund fleet expansion

     Aker Philadeplphia Shipyard                                                         $25           Planned share issue through private placement                      Done
                                                                                                       to finance growth following Aker split

    Cosco Pacific                                                                                     Acquired 20% stake in Suez Canal Container
                                                                                                       Terminal S.A.E. (SCCT), the operator of a

                                                                                                       terminal in Egypt's Port Said
     NOR Offshore                     UBS                                                              Seeking listing in Singapore                                    In Progress

    SPP Shipbuilding                 Mirae Asset Securitiesand Daewoo Securities       $300           Seeking listing in Korea in 2008                                In Progress

    Yantai Raffles Shipyard          Fearnley Fonds ASA                                $124           Sold 21.3 million new ordinary shares or 7.8% of
                                                                                                       the enlarged capital at NOK 31.00 per piece

     SFS Group                                                                          $200           Plans to issue shipping fund                                    Early Stages
     Ocean Tankers                    Undisclosed                                        $50           Rights issue to help finance 8 tanker acquisition;              Early Stages
                                                                                                       Remainder to be financed via existing
                                                                                                       ABN Amro bank loan

     HCI Hammonia Shipping            HSH Nordbank and NordLB                           $218           Hamburg listing of HCI/HSH investment                           In Progress
                                                                                                       vehicle following private placement

     Golar LNG                        Carnegie, Fearnley Fonds and                       $78           Listing in Oslo of 3.2 million new shares to                       Done
                                      Hemen Holding Limited                                            finance LNG carrier purchase

     DP World                         Deutsche Bank, Dubai Islamic Bank,               $4,960          Listing of 23% of Dubai container terminal                         Done
                                      Shuaa Capital, Merrill Lynch                                     operator on Dubai International Financial
                                                                                                       Exchange; Largest IPO in Middle East history

      Sinotrans Shipping              UBS and Bank of China International              $1,470          Hong Kong IPO of 1.4 billion shares at                            Priced
                                                                                                       $1.05/share; Retail tranche 243 times over subscribed

     Hellenic Carriers                Jefferies, National Bank of Greece                 $60           Planned listing on London's AIM to fund fleet                   In Progress
                                                                                                       expansion and for general corporate purposes

     Davie Yards                      Dundee Securities Corporation                     $110           Share issue/secondary offering of shares in                        Filed
                                                                                                       connection with the listing on Toronto Stock
                                                                                                       Exchange and Oslo Axess

     Navios Maritime Partners         Merrill Lynch, JP Morgan                          $200           Navios spin-off IPO of 10 million shares at                       Priced
                                                                                                       $20/share priced at midpoint of range                  O    Marine Money Freshly Minted                  O       Thursday, December 13, 2007                             O      Page 9
    Deal Tables & Bond Prices continued
    Bank Debt Deal Table                                        # = New              = Updated  = For full analysis see Marine Money’s Asia Edition
    Borrower                      Arrangers / Buyers                                             Amount Pricing / Purpose / Remarks
                                                                                                 (US$ M)

#   National Chemical Carrier Samba Financial Group                                                $392      Shariah compliant term facility to build 10 chemical
                                                                                                             tankers; Largest Saudi shipping deal from one single bank

#   Eimskip                       Straumur-Burdaras                                                $145      Loan facility concurrent with debt issue to fund expanded
                                                                                                             operations; For general corporate purposes and to refinance

                                                                                                             existing debt

    Tallink                       Danske Bank                                                      $212      12 year term loan beginning upon cruise vessel delivery
                                                                                                             from Aker yards in 2009

    Smit                          Fortis, ABN AMRO, ING Rabobank, DBS, Banque Artesia              $295      5 year loan subject to two one-year extensions to finance

                                                                                                             fleet modernisation, expansion

    Ocean Rig                     DnB NOR                                                         $1,040     Senior secured bank loan facility which will replace all
                                                                                                             existing debt and provide significant further financing

    Globus Maritime               Credit Suisse                                                    $120      8 year credit facility to be used for the repayment
                                                                                                             of existing debt

   Se Kwang Shipping             Shinhan Bank and Shinhan Capital                                 $72       Two 10-year loans to partly fund the acquisition of
                                                                                                             5 vessels. Priced at L+150bp

   Dubai World                   RBS, Credit Suisse, Deutsche Bank and Gulf Bank                 $5,000     For general corporate purposes including acquisitions
                                                                                                             and investments

    Compania Sudamericana         BNP Paribas, Credit Industriel and Commecial,                    $675      Credit facility at LIBOR + 90 to finance vessel acquisitions
    de Vapores                    South Korea's Export-Import Bank

    Navios Maritime Partners      DVB and Commerzbank                                              $260      Up to 4 year revolving facility which converts to term for
                                                                                                             up to 6.5 years thereafter at LIBOR + 80-125 concurrent

    Lease Deal Table                                            # = New              = Updated  = For full analysis see Marine Money’s Asia Edition
                                                                                                             with IPO

    Lessee                                 Lessor(s)/Advisor(s)                       Amount          Structure / Pricing / Comments
                                                                                      (US$ M)

#   Undisclosed unaffiliated party         Stealthgas                                   $115          Purchase and subsequent 7 year bareboat charter to an
                                                                                                      international oil trader of 2 new 47,000 dwt product tankers

#   Undisclosed large international        Danaos Corporation                           $450          Order of 3x 10,100 TEU post panamax containerships to be
    liner company                                                                                     placed on 12 year charter upon delivery in 2011

    Chervil, Camaiore,                     Evergreen                                     $60          Sale and leaseback of 4x 2,700 TEU containerships
    Sunsplash, Fontanelle

    Havila Aerial                          Havila Shipping                             $173.40        Sale and leaseback of two vessels for 8 years with purchase
                                                                                                      options after the 5th and 8th year

   Pacific International Lines            Pacific Shipping Trust                        $86          Sale and leaseback of 2x 1,800 TEU containerships for
                                                                                                      8 years at $11,550/day

    Humpuss Intermoda Transportasi         Skibs AS Tudor/Pareto                        $67.50        Sale and 5 year bareboat charterback at $38,500/day of
                                                                                                      70,000 dwt bulker; Purchase option at end of 5 years for $24.5m

    Cosco Pacific                          Schroeder Group KG                           $194.7        Sale and leaseback of fleet of containers

    Deep Sea Supply                        Ship Finance International                   $126          Sale and bareboatback of 2 new offshore support vessels for
                                                                                                      12 years with purchase options

    Groda Shipping                         First Ship Lease                             $113          Sale and leaseback of 2x ice-classed product tankers with
                                                                                                      purchase options and potential 3 year extension

    Athenian Ship Management               Fearnley Finans/Lorentzen Skibs KS           $22.90        Sale and 5 year bareboat charter to West Asia Maritime at
                                                                                                      $15,000/day with purchase obligation at period end                     O      Marine Money Freshly Minted             O        Thursday, December 13, 2007                  O         Page 10
Deal Tables & Bond Prices continued

                                             Jefferies – High-Yield Shipping Bonds

                                            Offer Price   YTW        STW       Maturity     Ratings     Call Date       Call Price

   Altus Group Ltd

    11% Secured Notes due '13                102.000      10.01%     655       04/01/13      –/–        04/01/10        105.500

   Britannia Bulk PLC (BBPLC)

   11% Senior Secured Notes due '11          104.500      8.87%      569       12/01/11     B3 / B-     12/01/09        103.170

   Great Lakes Dredge&Dock (GREATL)

   7.75% Sr Sub Notes due '13                 95.000      8.84%      517       12/15/13   Caa1 / CCC+   12/15/08        103.875

   Navios Maritime (BULK)

   9.5% Senior Notes due 2014                104.250      8.44%      491       12/15/14     B3 / B      12/15/10        104.750

   Sea Containers (SCR)

   10.75% Senior Notes due '06                62.500                           10/15/06    WR / NR

   7.875% Senior Notes due '08                61.500                           02/15/08    WR / NR

   12.5% Senior Notes due '09                 63.500                           12/01/09      –/–

   10.5% Senior Notes due '12                 62.500                           05/15/12     WR / –

   Stena AB (STENA)

   7.5% Senior Notes due '13                  99.000      7.71%      406       11/01/13    Ba3 / BB-    11/01/08        103.750

   7% Senior Notes due '16                    98.500      7.23%      320       12/01/16    Ba3 / BB-    12/01/09        103.500

   Trailer Bridge (TRBR)

   9.25% Secured due '11                     101.500      8.65%      534       11/15/11     B3 / B-     11/15/08        104.625

   Gulfmark Offshore (GMRK)

   7.75% Senior Notes due '14                101.250      7.42%      392       07/15/14     B1 / B+     07/15/09        103.875

   Hornbeck Offshore Services (HOS)

   6.125% Senior Notes due '14                95.250      7.00%      321       12/01/14    Ba3 / BB-    12/01/09        103.063

   Seabulk International (SBLK)

   9.5% Senior Notes due '13                 106.750      6.04%      283       08/15/13   Ba1 / BBB-    08/15/08        104.750

   7.2% Seacor Senior Notes due '09          102.000      5.97%      276       09/15/09   Ba1 / BBB-    any time

   5 7/8% Seacor Senior Notes due '12         99.000      6.12%      259       10/01/12   Ba1 / BBB-    any time              O   Marine Money Freshly Minted    O   Thursday, December 13, 2007          O    Page 11
Deal Tables & Bond Prices continued

                                             Jefferies – High-Yield Shipping Bonds continued

                                               Offer Price   YTW       STW        Maturity     Ratings    Call Date       Call Price

  Berlian Laju Tanker

  7.5% Senior Notes due '14                      85.000      10.80%    708        05/15/14     – / B+     05/15/12         103.750

  Golden State Petro (GOLDEN)

  8.04% 1St Mortgage due '19                    105.000      7.37%     319        02/01/19   Baa2 / BB+   any time        MW + 37.5

  Overseas Shipholding Group (OSG)

  8.25% Senior Notes due '13                    103.500      7.02%     367        03/15/13   Ba1 / BB+    03/15/08         104.125

  8.75% Debentures due '13                      107.500      7.18%     353        12/01/13   Ba1 / BB+    any time          MW

  7.5% Senior Notes due '24                      97.000      7.83%     355        02/15/24   Ba1 / BB+      NC               NC

  Ship Finance International Ltd. (SHIPFI)

  8.5% Senior Notes due '13                     102.000      7.91%     447        12/15/13     B1 / B+    12/15/08         104.250

  Titan Petrochemicals (TITAN)

  8.5% Senior Secured Notes due '12              88.000      12.19%    875        03/18/12     B3 / B     any time        MW + 100

  Teekay Shipping (TK)

  8.875% Senior Notes due '11                   105.000      7.26%     387        07/15/11   Ba3 / BB-    any time        MW + 50

  Ultrapetrol Limited (ULTRAP)

  9% 1St Mortgage due '14                        96.500      9.70%     594        11/24/14     B2 / B     11/24/09         104.500

  US Shipping Partners (USS)

  13% Secured due '14                            99.500      13.10%    937        08/15/14   Caa3 / B-    02/15/11         106.500               O      Marine Money Freshly Minted   O    Thursday, December 13, 2007        O      Page 12
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