Markedsrapport – Desember 2007 - NRP AS

Markedsrapport – Desember 2007 Side 42
United Cape DIS - financial shipping project
Contact: Ragnvald Risan (r.risan@nrp.as)
Ness, Risan & Partners AS
Date of analysis:
01.12.2007
Estimated share price (USD): 1 %
Estimated share price (USD):* 105 000
Key figures: 100 %
Paid in equity (USD): 9 900 000
Accumulated dividend (USD): 0
Residual value sensitivity on IRR :
BASE CASE
Residual value end C/P: 2 100 000
IRR estimated share price: 16,32 %
IRR total capital: 7,60 %
* The Share price includes a 5% deduction on the the tax position of the
company.
Corporate details The Vessel
Corporate Management: Ness, Risan & Partners AS Vessel's name: M/V Capegulf
Commercial Management: Arne Blystad AS Type: Suezmax Tanker
(to be converted to Capesize bulk carrier)
Purchase price vessel (after conversion): USD 51 000 000 Dwt: 147,720 (136,776 after conversion)
Paid in capital: USD 9 900 000 LOA/ Beam: 274.3m /43.2m
Uncalled capital: USD 12 000 000 Yard: A.E.S.A., Spain
Commencement of C/P: 2.10.2007 Conversion yard: Yiu Lian Shipyard Sheikou, China
Expiry of C/P: 10.06.2018 Built: 1990
Converted: 2008
Base case assumptions: Class: Bureau Veritas
Interim period (02.10.07-10.06.08) USD 7 240 Flag: Liberia
BB rate net per day year 1-2: USD 35 000
BB rate net per day year 3-5: USD 20 900
BB rate net per day year 6-10: USD 10 525
Charterer: Star Universal Marine Limited, Cyprus
guaranteed by ETA Star Holdings Ltd, Dubai
Estimated Cashflow Financing (31.12.2007)
Estimated Cashflow 2007 2008 2009 Balance Inst. Interest Balloon
Operating revenue 653 410 8 264 000 12 775 000 Mortgage debt 1 37 000 000 0 6,05 % * 550 000
Administration expenses 37 500 75 750 78 030 Sellers Credit 5 100 000 0 0,00 % ** 2 100 000
Net operating cashflow 615 910 8 188 250 12 696 970 Total 42 100 000 0 2 650 000
Interest earned 5 389 107 609 178 648
Interest expenses 262 000 1 633 150 1 856 900
Repayment long term debt 0 4 000 000 8 000 000
Repayment sellers credit 0 150 000 300 000
Net financial items -256 611 -5 675 541 -9 978 252
Net project cashflow 359 299 2 512 709 2 718 718
Estimated dividend 0 0 3 200 000
Estimated Balance (31.12) Additional information
2007 2008 2009
Working capital 359 299 2 872 009 2 390 726
Vessel* 48 307 547 45 389 787 42 227 866
Total assets 48 666 846 48 261 796 44 618 592
Outstanding debt 1. Prior 37 000 000 33 000 000 25 000 000
Sellers credit 5 100 000 4 950 000 4 650 000
Total outstanding debt 42 100 000 37 950 000 29 650 000
* Vessel value is calculated based on a depreciation of annual annuity
factor of 8.2%
* Quarterly instalments:
Instalment 1-8: USD 2 000 000
Instalment 9-20: USD 2 000 000
Instalment 21-28: USD 2 000 000
USD 17 200 000 of the loan is fixed at interest 5,99% incl. margin until
04.10.2011. The remaining loan has not fixed the interest rate.
** Sellers credit repaid in semi annual instalments of USD 150 000 after
conversion.
The vessel will be converted to a capesize bulk carrier at Yiu Lian
Shipyard Sheikou, China. The conversion will take approx. 4-6 months
and will start end December 2007. United Cape DIS will not have any
risk for cost and time overruns on the conversion.
The charterer has a purchase obligation to buy the vessel end of the
fixed bareboat charter at USD 2 100 000.