Merrill Marine Services Inc. - Surveying, Appraisal, Brokerage, Remarketing

NAUTICA FINANCIAL SERVICES
NAUTICA FINANCIAL SERVICES, LLC (NFS) was formed in in 2005 to assist companies with financing larger, more challenging projects. In many instances, lenders cannot get comfortable with new builds unless they have an inside track with the company, or a “real world” valuation of existing assets. NFS can assist borrowers by compiling the necessary financial and asset information and putting it in a format necessary to secure debt through private equity or conventional lenders. The affiliation with Merrill Marine Services, Inc. (MMSI) allows NFS direct access to industry information and trends that add credibility to requests for funding. NFS can provide a turn-key approach to new builds by providing the following services:

NAUTICA FINANCIAL SERVICES

Construction Financing
Lines of Credit for boat builders
Term Financing or Leasing
Financial Management
- Debt Restructure
- Sub-debt

MERRILL MARINE SERVICES

Vessel design
Contract negotiations with shipyard
Construction Management
Milestone surveys
Annual fleet inspection
Remarketing

DOCUMENTATION AND LEGAL SERVICES
NFS will arrange for knowledgeable, experienced admiralty attorneys to provide guidance and legal services in connection with:

Review of new construction contracts
Preparation of all necessary documents for the US Coast Guard
Preparation of applications and documents for Official Number Registry
Preparation of Bareboat Charter Agreements and/or all Lease Agreements requiring admiralty legal assistance
Insurance matters, claims and/or damages arising during the construction process and delivery and acceptance phases of the vessel.

Legal fees and costs will be quoted with a focus on economic and expeditious resolution of all contract issues and preparation of all documents.

Private Equity: Most conventional lenders simply do not like to provide short-term loans to shipyards or operators for construction projects. Some lenders will provide construction financing for certain types of vessels, but only when it will be rolled to term financing or a lease and then only out of necessity for existing clients or “A-list” borrowers. NFS is affiliated with a private equity partner that prefers short term loans (12 to 18 months) and is looking to expand its portfolio. The relationship is effective because NFS / MMSI are fully dedicated to the maritime industry and only recommend viable projects.

Private equity is further available in the form of sub-debt, to shore up a borrower’s balance sheet and thereby make senior debt more attractive to conventional lenders.

Oil Protection Act – 1990 (OPA-90): The “build program” for companies involved in the petroleum industry has been accelerated because of OPA-90. In many instances, the additional debt increases leverage, making it more difficult to secure construction financing. NFS can provide assistance by restructuring debt and/or securing permanent financing at the end of construction. The financial analysis and due diligence required for construction financing is generally more in-depth than that required for permanent financing. NFS can provide this information to lenders significantly reducing the time for credit review.

Line of Credit (LOC): Credit lines are available to boat builders that will dedicate funds to new builds. The construction projects require approval by NFS, but the requirements are liberal assuming that the boat builder has the capacity to guarantee the loan.Once the vessel is sold and delivered to the new owner the credit line is freed up for new construction.