Operating Leases and Structured Equity

Operating leases in the maritime sector usually take the form of commercially-oriented vessel “sale and leaseback” transactions while structured equity in this context is the capital below the senior debt level required for such projects. There are abundant challenges for investors and companies alike when it comes to operating leasing in the maritime sector:

• Cyclicality: Maritime businesses are very sensitive to supply and demand shifts which can create deeply cyclical earnings patterns. Opportunistic timing is critical to accessing capital efficiently and to making successful investments.
  
  
• Risk complexity: In the maritime sector, even seemingly simple operating lease opportunities can be complex and lack sufficient or appropriate supporting information. As a result, it is often difficult for non-industry participants to evaluate risks.
  
  
• Selectivity: There is typically no shortage of maritime transactions in the market. However, only a limited number of opportunities are well-structured to produce acceptable returns.

Despite these challenges, successful transactions are regularly concluded in the maritime sector. TRIDENS assists it clients through:

• access to transactions via reliable principal relationships,
• identification and efficient screening of prospective transactions, and
• careful due diligence in the closing stages of a transaction.