02-01-2011, 12:19 PM
one concern I have with PST is that the vessels chartered to PIL are really old, and their charter rate is really high compared with other players in the market.
with debt funding the acquisition of 180 mil of 2 Bulks and 2 MPPs, it means, the debt/equity will be above 1. and with financing not secured for the 5 supermax, it is quite similar with what happened in Rickmers in 2008. In 2008, Rickmers secured 600+ mil for 5 MOL vessels and 4 Hanjin vessels using pure debt. later they couldn't withdraw the loan to pay for the vessels. Rickmers also has financial commitment for the 4 Maersk vessels which financing not secured. The good thing about PST, they did not buy those vessels at too high price.
with debt funding the acquisition of 180 mil of 2 Bulks and 2 MPPs, it means, the debt/equity will be above 1. and with financing not secured for the 5 supermax, it is quite similar with what happened in Rickmers in 2008. In 2008, Rickmers secured 600+ mil for 5 MOL vessels and 4 Hanjin vessels using pure debt. later they couldn't withdraw the loan to pay for the vessels. Rickmers also has financial commitment for the 4 Maersk vessels which financing not secured. The good thing about PST, they did not buy those vessels at too high price.