Maritime Partners Announces $235.3 Million Securitization
Metairie, La.-based Maritime Partners LLC, a maritime leasing and financing company with a fleet of close to 1,800 inland towboats and barges on long-term charter, has announced completion of the inaugural capital markets issuance of vessel asset-backed securities (ABS) by its affiliate, MP 2023 LLC.
Maritime Partners used 316 of its vessels and their associated long-term bareboat charters—valued at $372.3 million—as collateral for a new secured bond totaling $235.3 million. The company has used the capital to pay down existing debt. Additionally, a portion of the capital could be used to fund future growth opportunities.
The Class A notes carry a coupon of 7.167 percent over an expected term of seven years. The bonds received an “A” rating from DBRS Inc. and Kroll Bond Rating Agency LLC.
“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,” Bick Brooks, co-founder and CEO of Maritime Partners, said in announcing the securitization.
Atlas SP Partners, launched in February, led the financing effort.
“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 for Atlas SP Partners.
The securitization is groundbreaking in that it is the first to use inland marine assets. In the past, operating lease securitization technology has used transportation assets like railcars, shipping containers and aircraft to raise capital. The Maritime Partners financing is the first to securitize a portfolio of inland marine vessels on long-term lease and establishes a deep pool of capital for the company.
Founded in 2015 by Brooks and Austin Sperry, who serves as president, Maritime Partners quickly grew into a leading provider of maritime financing solutions in the inland marine industry. The company, through its fleet of towboats and barges, offers tailored leasing options for inland operators through bareboat charters, sale-leaseback, vessel construction financing, portfolio acquisition and custom liquidity solutions.
