KKR and Borealis Maritime has acquired a portfolio of nine feeder container vessels in a sale process coordinated by Commerzbank.
The vessels were previously owned by a number of German KG funds and were originally financed by Commerzbank. Financial details of the transaction were not disclosed.
In 2013, KKR and Borealis Maritime formed a joint venture named Embarcadero Maritime to invest in distressed shipping assets. Since its formation and including the most recent acquisition, Embarcadero Maritime has acquired 27 vessels in nine separate transactions and its current fleet includes a mix of chemical tankers, feeder container vessels and small LPG vessels.
To date, KKR and Borealis have deployed over USD100 million into vessel acquisitions and continue to pursue additional transactions opportunistically.
Christoph Toepfer, CEO of Borealis Maritime, says: "Our partnership with KKR has been well timed to deploy capital during what we believe will prove to be a low cycle in the shipping industry. We have been able to grow our fleet significantly and together with KKR are offering lenders feasible solutions to prior lending engagements."
"We are pleased to acquire these nine vessels with Borealis," says Brian Dillard, a member of KKR's special situations team. "We are actively looking for attractive investments in shipping, particularly where we can provide a solution for lenders looking to reduce their exposure.”
KKR is funding the acquisition through certain of its managed funds and accounts and its special situations fund, which, among other things, offers long-term capital to support the long-dated nature of shipping assets.
