Watch video: Supporting customer needs while minimizing environmental impact

George Pasha:

We're a 75-year-old third generation family business.

Jay Bowden:

The way we really got into the container business in Hawaii, we acquired a company in 2015 who had 40 plus year old ships.

George Pasha:

Basically doubled the company in every respect, but eyes wide open. We knew that we were going to have to invest significant capital in terms of refleeting as well.

Jay Bowden:

It was a unique opportunity. Get an opportunity to build from scratch a brand new container ship that's going to be in service for 40 years. So we had to look ahead a little bit and decide how we wanted to power these ships.

George Pasha:

Everybody's focused on how we can make a difference and as a family business, we are very sensitive to the communities that we operate in and we want to be as proactive as we can be.

Jay Bowden:

We made it a decision early on to go with LNG. Because of the environmental benefits we would have, there are efficiency benefits from it as well.

Ed Washburn:

For an alternative fuel, it's the only available fuel other than nuclear that can power a high horsepower ocean going vessel.

Jay Bowden:

Prior to that, we were doing a lot of equipment financing, smaller deals, so this was quite a large project for the company.

Brandon Hannaman:

Conversations originally started with doing more of their bread and butter equipment financing needs.

We did some leases on some rolling stock, and then some yard tractors that move around the shipping containers. Then from there we started talking about their new project, which was George III and Janet Murray.

Jay Bowden:

Ran a process and looked at a variety of potential financing partners. One of the key things that we were looking for was experience in the maritime lending space.

George Pasha:

So you definitely need people that are in the space that understand the nuances to financing a company like ours. The key guys are very good at it.

Phil Turner:

Key got involved in late 2018 and we started to build a plan to take their transactions to the capital markets, which involves a combination of key years the Lee Bank and Finance company, but also bringing in other investors into the transaction because of the size of a transaction.

Jay Bowden:

It was challenging because the construction took significantly longer than anticipated, largely because of Covid delays.

Brandon Hannaman:

We went from a project that we are anticipating 18 months of being involved with to almost now going on three to four years.

Ed Washburn:

There was some delays and KeyBank as the lead managers, the lenders manage expectations and helped us keep everything positive up till delivery.

Jay Bowden:

He was there and was able not only to kind of walk us through the process, but also keep all of the various lenders they brought into the deal.

Phil Turner:

Our goal is to manage the investors, help them work through those issues, and keep a customer on track in terms of making sure that we can deliver on time and have a financing ready for them.

Jay Bowden:

Now that we've taken delivery of this ship, we've actually put it into service. It's just completing its second complete voyage to Hawaii without any issues and we saw immediate benefits.

Phil Turner:

It is refreshing to see a company like Pasha actually really focus on the energy efficiency and the environmental aspects. I think what we're all most proud of is the environmental sustainability.

Jay Bowden:

We were an early adopter of this technology and we're very proud to be the first LNG powered ship to call on the US West coast. I think time has proven that we made a good decision.

Watch this 4-minute video to discover how The Pasha Group is making a difference in the communities they operate and learn about their proactive decision to build new ships with LNG for both environmental and efficiency reasons, and how Key was there to help every step of the way.

LNG (Liquefied Natural Gas) ship details

The MV George III is the first LNG-powered vessel to serve the West Coast, which will substantially improve its environmental footprint and help surpass the International Maritime Organization (IMO) 2030 emission standards for ocean vessels. Energy efficiencies will also be achieved with a state-of-the-art engine, an optimized hull form, and an underwater propulsion system with a high-efficiency rudder and propeller.

  • First vessel in the U.S. built to the international gas fuel chip code
  • 99.9% reduction in diesel particulate matter and sulfur oxide emissions, helping to improve the health of people in port communities
  • Zero sulfur emissions
  • Reduce greenhouse gasses:
    • 90% less nitrogen oxides
    • 25% reduction in carbon dioxide compared to traditional fuels

 

Key Equipment Finance was the lead arranger of the group syndication providing $167.5 million in financing for George III. The financing team at Key Equipment Finance was led by Brandon Hannaman and Sera Oliver. To learn more, visit our KEF blog post.

This video is for general information purposes only and does not consider specific investments objectives, financial situation, and particular needs of any individual person or entity. Key Equipment Finance is a division of KeyBank.

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