Old Hill Partners provided a $5.1 million senior secured drawdown facility to an acquirer and lessor of standard 40’ shipping containers.
The borrower’s lessees include shippers with trade routes in Asia and the Middle East. Leasing and container management services are provided to the borrower by managers in Hong Kong and Singapore.
Security for the facility consists of new containers, leases, receivables from the leases, a stock pledge of the borrower and guarantees.
“We believe that the global shortage of containers presents an opportune time to finance owners and lessors of these assets,” Sam Adams, portfolio manager at Old Hill Partners, said. “Lease rates are at historic highs and container owners are able to lock in these rates under long-term leases. We worked closely with the borrower and its parent company, which has extensive experience in container acquisition and leasing, to craft a transaction that capitalized on the opportunity while building in collateral and cash flow safeguards to mitigate risk. We continue to be interested in this sector and in transport finance generally.”
Old Hill Partners provides asset-based lending solutions for borrowers seeking $5 million to $50 million in financing.
