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HFW advises Tristar Transport on award winning finance deal

18 June 2015

HFW Partner Tony Rice and Senior Associate Aysha El-Kaddah recently acted for Tristar Transport LLC in relation to the limited recourse operating lease financing of 6 MR Product Tankers currently under construction and which will, when delivered, be time chartered to Shell on long term Shelltime charters.

The financing comprised both senior, junior and Tristar equity tranches. The senior tranche was provided by a syndicate of Middle Eastern and Australian banks. The value of the vessels on maturity was underwritten by Ironshore Specialty Insurance pursuant to individual residual value insurance policies.

HFW’s role included negotiating the shipbuilding contracts, time charters, RVI policies, operating leases and other financing documents as well as the Shell Quiet Enjoyment Letters with Shell and the financing banks.

The transaction recently won the Corporate Finance Award at the ACT Middle East Treasury Awards 2015.