Singapore Shipping Corp

Would there be possibility that collateral is more than just the 80m new ship?

(10-03-2015, 09:03 PM)Contrarian Wrote: Singapore, 10 March 2015 –Singapore Exchange Mainboard-listed Singapore Shipping Corporation Limited (“SSCL”) announces its entry into a term loan facility of up to US$77million (“Term Loan”) with a leading Japanese financial institution.

The Term Loan will be used to finance the acquisition of a Pure Car Truck Carrier (“PCTC”) vessel. Upon its delivery in March 2015, the vessel will be chartered to a blue chip shipping major.

US$80M new ship. Borrow up to US$77M. 95% financing.

So generous financing for a ship? Must be Jap bank very desperate...

The recent surge is share price may be due to the fact that the market favours companies that can find capital on their own, without rights or share placements that dilute existing shareholdiers.

banks wont be so kind even when buying a freehold property in singapore.
3M downpayment, 77M loan. WOW!

Maybe this is due to the extra liquidity(cheap money) by Japan Government to boost its economy?

(10-03-2015, 11:01 PM)valuebuddies Wrote: Would there be possibility that collateral is more than just the 80m new ship?

Hiding the info, is violating SGX rule. I really doubt the possibility.

(11-03-2015, 08:56 AM)CityFarmer Wrote:

(10-03-2015, 11:01 PM)valuebuddies Wrote: Would there be possibility that collateral is more than just the 80m new ship?

Hiding the info, is violating SGX rule. I really doubt the possibility.

There is no indication in the announcement on the pledging, I don't think it is hiding but rather choose to disclose later in the quarter results/annual report.

(11-03-2015, 10:01 AM)valuebuddies Wrote:

(11-03-2015, 08:56 AM)CityFarmer Wrote:

(10-03-2015, 11:01 PM)valuebuddies Wrote: Would there be possibility that collateral is more than just the 80m new ship?

Hiding the info, is violating SGX rule. I really doubt the possibility.

There is no indication in the announcement on the pledging, I don't think it is hiding but rather choose to disclose later in the quarter results/annual report.

Timing is an important consideration for disclosures. If the pledging is related, or part of the deal announced, delaying till later is also violating the rule.

(11-03-2015, 10:06 AM)CityFarmer Wrote:

(11-03-2015, 10:01 AM)valuebuddies Wrote:

(11-03-2015, 08:56 AM)CityFarmer Wrote:

(10-03-2015, 11:01 PM)valuebuddies Wrote: Would there be possibility that collateral is more than just the 80m new ship?

Hiding the info, is violating SGX rule. I really doubt the possibility.

There is no indication in the announcement on the pledging, I don't think it is hiding but rather choose to disclose later in the quarter results/annual report.

Timing is an important consideration for disclosures. If the pledging is related, or part of the deal announced, delaying till later is also violating the rule.

Thanks

"US$80M new ship-. Borrow up to US$77M. 95% financing." Jap QE!!

free money whooo-hooo!

(11-03-2015, 07:55 PM)brattzz Wrote: "US$80M new ship-. Borrow up to US$77M. 95% financing." Jap QE!!

free money whooo-hooo!

you ignore the crazy counterparty of the deal.

Recalculate the high purchase payment annually for 3 vessels at 3% and 15 years and25 years respectively
1) (16.5+16.5x0.03x15)/15=1.6
2) (77+77x0.03x25)/25=5.4
3) us$ go up
Looks like 3 new ships can bring in usd5.6mil profit and make eps s$4cts