Maritime Partners swoops on Maersk Line Limited subsidiary
Written by Maureen Cooney, Marine Log Staff
Within weeks of announcing it was to acquire the nine Jones Act tankers owned by Oslo-listed AMSC ASA (the company formerly known as American Shipping Company), Metairie, La., headquartered Maritime Partners LLC reports that on September 20, 2023, one of its managed funds acquired Norfolk, Va.-based U.S. Marine Management LLC (USMMI) from Maersk Line Limited, the U.S.-flag subsidiary of A.P. Moller-Maersk.
USMMI is engaged in chartering U.S. flag tanker and military support vessels, owned and operated by USMMI, to the Navy’s Military Sealift Command and the operation and maintenance of U.S. government-owned vessels.
USMMI currently operates a fleet of five U.S.-flagged vessels (including one owned maritime support vessel, three owned tankers, and one bareboat chartered tanker) and one O&M contract supporting U.S. Army training watercraft in Japan.
In addition, USMMI was recently awarded a new operating agreement for the U.S. Maritime Administration’s Tanker Security Program. In connection with this award, USMMI has entered into an agreement to acquire another medium range tanker, which is expected to close in fourth quarter 2023.
“We’re excited to add USMMI to our portfolio,” said Bick Brooks, co-founder and CEO of Maritime Partners. “USMMI’s long-term contracts with a strong customer base will nicely complement our existing portfolio of assets by providing diversification across counterparties, assets and end markets. We’re excited to partner with USMMI’s long-tenured and talented management team in the next phase of USMMI’s evolution.”
Maritime Partners says the deal is yet another significant transaction for it and its managed funds, bringing with it not only a management team with more than 30 years of government contracting experience, knowledge, and expertise, but also a significant opportunity for portfolio diversification through the addition of a new vessel class with new capabilities, a new maritime market to serve, and a new counterparty to the acquiring fund’s portfolio.
NEW $600 MILLION LINE OF CREDIT
Maritime Partners followed up its announcement of the USMMI acquisition by today reporting the successful closing of a $600-million warehouse facility between several special-purpose, wholly-owned subsidiaries of one of its managed funds and a syndicate of lenders led by New York City headquartered Atlas Securitized Products Holdings, L.P. (Atlas SP).
What’s a “warehouse facility” in finance? More on that HERE
“Maritime Partners’ new $600-million warehouse line of credit is an important step in the growth and institutionalization of our platform,” said Bick Brooks.
The line of credit is Maritime Partners’ latest deal with Atlas SP as well as its third financing closed in the last four months. Together, Maritime Partners and Atlas SP have raised nearly $1.2 billion in financing year to date, with Atlas SP serving as underwriter.
“This deal significantly increases our borrowing capacity and demonstrates our best-in-class access to capital with our long-time partner Atlas SP, along with our two new lenders, Deutsche Bank and Bank of America,” Brooks said.
