LONDON,- Oak Hill Advisors (“OHA”) and Värde Partners (“Värde”) announced today they entered into an agreement to acquire a US$1 billion portfolio of shipping loans from Deutsche Bank.
The transaction is expected to close in the third quarter of 2018 pending regulatory approvals. This represents the second sale of shipping loan portfolios from European banks that Värde and OHA have acquired together.
“We view this investment as part of our long-term commitment to provide alternative capital to the shipping industry as traditional participants reduce their exposure and change tack following a challenging period for the sector as a whole,” said Stephen Seymour, Managing Director at Värde responsible for the firm’s investments in the transportation sector. “We are pleased to partner with OHA again as we continue to find compelling investment opportunities as banks divest out of legacy loan portfolios.”
With over 40 loans secured against 70 vessels, the loan portfolio has underlying exposure to a diversified pool of shipping sectors and borrowers.
“We believe the structural changes in the shipping finance industry present an opportunity for flexible capital providers, and we are uniquely positioned given our platform, expertise and relationships in the sector to underwrite and manage these investments,” said Alexis Atteslis, Portfolio Manager and Managing Director at OHA who also heads the firm’s shipping investment activities. “We are excited to be a partner to the banks, high caliber shipowners and borrowers, as we continue to expand our global shipping and transportation business.”