Brock Capital Advises on $700mm Strategic Partnership Between Eletson Holdings and Blackstone
NEW YORK, NY – (Marketwired) – Brock Capital (“Brock”) today announced the formation of a joint venture between Eletson Holdings Inc. (“Eletson”) and funds managed by Blackstone Tactical Opportunities (“Blackstone”) to create Eletson Gas, a $700 million liquefied petroleum gas (“LPG”) shipping company. As part of the agreement, Eletson will contribute its existing fleet of five medium-size gas carriers, and Blackstone will provide equity capital to finance the growth of the company through the construction of new-build vessels as well as through the acquisition of existing vessels. Operating and technical management of the Eletson Gas fleet will be provided by Eletson.
Also, Eletson Gas announced the signing of newbuilding contracts for eight vessels — five 12,000 cbm ethylene-capable semi refrigerated (“semi ref”) vessels with Korea’s Hyundai Mipo Dockyard and three 22,000 cbm ethylene-capable semi ref vessels with China’s Sinopacific Offshore & Engineering as well as the acquisition of a 22,000 cbm second hand semi ref vessel. Additionally, Eletson Gas holds options for two additional 22,000 cbm vessels at Sinopacific. All eight new-build vessels are scheduled for delivery in 2015 and early 2016.
Lascarina J. Karastamati, President of Eletson Holdings, said, “We are delighted to partner with Blackstone as we look to expand Eletson’s existing LPG platform. Our partner’s expertise and global reach, including its exposure to the U.S. energy sector, will help to grow the business successfully into new and existing markets.”
“Through this partnership, we are committed to building a best-in-class, global owner and operator of LPG vessels that is a leader in its market segment,” said Jasvinder Khaira of Blackstone’s Tactical Opportunities Fund. “We are thrilled to join Eletson and its strong management team in this new venture.”
“This marriage of Eletson’s leading shipping operation and Blackstone’s premier global investment platform represents a first class partnership in the maritime industry,” said Jay Rodin, who led the transaction at Brock. “It is reflective of opportunities taking shape presently in shipping capital markets, and we are pleased that the advisory team has been able to see this through to fruition at such an exciting period in shipping.”
DNB Markets Inc. co-advised Eletson on the transaction. Holland & Knight and Akin Gump acted as legal counsel for Eletson and Blackstone respectively.
About Brock Capital
Brock Capital Group LLC, is a boutique investment bank organized to provide clients with strategic advice, capital raising and implementation assistance through outstanding executives and professionals from diverse corporate and governmental backgrounds. Brock teams leverage the broad collective experience of the Firm’s partners as senior consultants, senior corporate officers, investment bankers, government officials, economists, entrepreneurs, accountants and lawyers to provide comprehensive client solutions that address often overlooked issues in corporate transactions.
Brock Securities LLC, a registered broker-dealer, is a member of the Securities Investor Protection Corporation and the Financial Industry Regulation Authority, and conducts the capital raising and associated banking activities of Brock Capital Group LLC.
Additional information about Brock and the services provided by Brock is available at http://192.168.0.11/brockcapital.