Structured Finance Group Closes $1.4 Billion Secured Acquisition Financing
Nancy L. Hengen- New York
Jovi Tenev - New York
Holland & Knight's structured finance lawyers completed the execution and drawdown of a $1.4 billion senior secured credit facility. Holland & Knight represented Nordea Bank Finland plc, London branch, as administrative agent, and a group of eight financial institutions as initial lenders, including Nordea, DVB Bank, Deutsche Bank, GECC and HSH Nordbank as lead arrangers. The borrower was Excel Maritime Carriers Ltd., a NYSE-listed Liberian corporation.
Proceeds of the loan were used to finance the acquisition by Excel of NASDAQ-listed Quintana Maritime Limited, a Marshall Islands corporation. The combined entity, with executive offices in Greece, is one of the largest international bulk ship owners. Thirty-eight vessels were part of the collateral package. In addition to New York law, which was the governing law of the loan and most of the security documents, the transaction involved the laws of the Marshall Islands, Liberia, Panama, Cyprus, the Bahamas, Malta and England – and a great deal of coordination.
Holland & Knight began work in December 2007 to negotiate a fully-underwritten financing commitment by year-end, helping Excel to become the successful bidder for Quintana. With the underwritten commitment in place, Excel was able to execute the acquisition agreement with Quintana, and the loan transaction closed in the second quarter of 2008.