Bravia Capital advises on and structures acquisition of Cronos Limited by Bohai Leasing Company, strengthening Bohai’s position in global transportation and equipment finance.
Hong Kong, January 21, 2015 – Bravia Capital, the global investment and advisory firm, announced today that they have arranged and structured the successful acquisition of Cronos Limited (“Cronos”), a leading global container leasing company, by Bohai Leasing Company (“Bohai”), a public company listed on the Shenzhen stock exchange. Bohai is a leading global transportation equipment and infrastructure finance company which owns and manages leasing companies and investments in aircraft, ships, containers, infrastructure, commercial property, medical equipment, automobiles, high-end equipment and other specialized lending and leasing businesses.
The acquisition of Cronos will complement Bohai’s existing investment in Seaco Group. With the acquisition and the amalgamation of the two companies Bohai will now be the largest and most diversified container leasing company in the world by Container Equivalent Units (“CEU”).
As part of the acquisition funding strategy, Bravia also advised on the largest ever BBB asset backed note issuance secured by container lease residuals by Seaco – a Bohai portfolio company. Seaco raised $230 million of funding through the issuance of $100 million short term notes with a 1.4 year weighted average life and to yield 2.758% and $130 million longer term notes with a 3.5 year weighted average life and to yield 3.883%.
“With the Cronos acquisition, we are bringing to Seaco a company with a similarly well-managed and well-diversified portfolio of on-lease cargo containers, but with complementary strengths across regional lines and customer base. Bravia identified this acquisition and the opportunity to issue BBB asset backed notes as a strong value-add proposition for Bohai shareholders, who will benefit from the creation of a clear market leader.” said Mr. Bharat Bhise, Bravia Capital CEO.
“As the largest container leasing company in the world by CEU with a strong market position in specialized containers and increasing cost efficiencies, this acquisition will make the combined companies more competitive in the market and able to deliver increased value to its customers.” said Mr. Hal Hayward, Managing Director of Bravia Capital.
Cronos is one of the world’s leading cargo container lessors, and an industry leader in specialized container leasing. The company leases dry, refrigerated, tank and specialized intermodal container equipment to users worldwide across a number of industries. Headquartered in San Francisco, Cronos supplies its customers with containers and related services from over 20 locations in 18 countries. Cronos owns approximately $2.5 billion in container equipment and boasts one of the most diversified fleets in the industry.
Bravia Capital is a global investment and advisory firm with a primary focus on transportation, logistics, infrastructure and financial service investments worldwide. Bravia have recently completed several key transportation sector acquisitions on behalf of itself and its partners: Thotakã Tecknologies India (2014), Energy Asia Transportation (2014), TIP Trailer Services Group (2013), Africa World Airlines in Ghana (2012), Seaco (2011), MyCargo Airlines (2011), myTECHNIC (2010). For more information, please go to the company’s web site: www.braviacapital.com.