Maritime Partners, a provider of maritime financing solutions primarily focused on Jones Act vessels, has announced the successful completion of the inaugural capital markets issuance of vessel asset-backed securities (ABS) by MP 2023 LLC, its controlled affiliate. This transaction was the first ABS issuance composed entirely of inland marine vessels.
MP 2023 LLC issued an aggregate principal amount of $235.3 million of its MP 2023-1, Class A Notes, with a coupon of 7.167% over an expected 7-year term. The transaction is secured by a portfolio of 316 inland marine vessels with a fair market value of approximately $372.3 million and their associated long-term bareboat charters. The Notes received an ‘A’ rating from both DBRS, Inc. and Kroll Bond Rating Agency, LLC. Proceeds from the transaction have been used to pay down existing debt, among other purposes.
“We believe that with this ABS transaction, Maritime Partners and its affiliates now have access to the lowest cost of capital in the inland marine industry,” said Bick Brooks, co-founder and CEO of Maritime Partners.
This transaction represents a significant milestone for the firm and is expected to strengthen Maritime Partners’ capital structure and further solidify its standing as a leader in the industry. With new access to the ABS market, Maritime Partners anticipates utilizing the structure it now has in place for future issuances that align with the long-life nature of the underlying inland marine vessel assets.
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The financing was led by ATLAS SP Partners, which was launched in early February 2023 and is led by CEO Jay Kim, previously Head of Securitized Products Group at Credit Suisse.
“We are proud to partner with Maritime Partners on this first-of-its-kind issuance, a creative solution that leverages the company’s unique portfolio of assets to provide access to low-cost capital,” said Shailesh Deshpande, Head of ABS Transportation Origination.