Allen & Overy has advised existing clients Oak Hill Advisors and Värde Partners on their acquisition of a $1bn portfolio of shipping loans from Deutsche Bank.
The $1bn portfolio of shipping loans is the second significant shipping loan portfolio that Oak Hill Advisors and Värde Partners have acquired from European banks. With a broad spread of vessel types, the loan portfolio has underlying exposure to a diversified pool of shipping sectors and borrowers.
The acquisition comes at a time of heightened activity in the shipping loan secondary market with a number of traditional lenders reducing their shipping books after a challenging period in the shipping sector as a whole.
Allen & Overy advised Oak Hill Advisors and Värde Partners on all aspects of the acquisition including the sale and purchase arrangements and the Luxembourg corporate aspects. The multi-disciplinary and cross-border team was led by London partner and global head of shipping finance Kevin Young, who was assisted by Luxembourg corporate partner Peter Myners, Frankfurt banking partner Wolfgang Melzer, Luxembourg tax partner Patrick Mischo and ICM partners Tom Constance in London and Frank Mausen in Luxembourg. Reed Smith advised Deutsche Bank.
Commenting on the transaction, Kevin Young said, “We are very pleased to have helped Oak Hill Advisors and Värde Partners secure this portfolio following a very competitive process. Both firms are uniquely positioned as leading alternative capital providers, which are becoming increasingly important to the shipping sector.”