Page 32: of Maritime Reporter Magazine (February 1995)

FINANCIAL UPDATE long-term commitments, and can involve complex, optimized repay- ment schedules, tax benefit trans- fers and residual risks and rewards.

Loans, on the other hand, are ubiquitous in the industry and of- fer maximum flexibility for the bor- rower.

Loans can be designed to incorpo- rate the following features: • Advance rates can approach those of a lease; • Term can be almost as long as the asset's remaining useful life; • Repayment structures can be customized and optimized; • Loans can be partial or even fully non-recourse to borrowers with recourse to charterers; • Balloons can be partial or even fully non-recourse to borrowers;

Power

March 22-23

Machinery & Compression Conference , 1995 • Hilton Conference Center • University of Houston • Houston, Texas ••P Oiscussion Topics 1.' 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Exhaust Emission Reduction

Predictive Maintenance Programs for Reciprocating Equipment

Maintenance and Operation of Hyper Compressors

Maintenance and Operation of Extruders

Lubrication Application Systems

Compressor Valve Design and Maintenance

Maintenance and Operation of Gas Transmission and Gas Gathering Compressors

Maintenance and Operation of Petrochemical, Refining, Process, and Utility Compressors

Maintenance and Operation of High Speed Gas Engines and Compressors

Cooling System Care and Maintenance

Steam Turbine Maintenance and Operation

Maintenance and Operation of Turbochargers and Blowers

Lubrication and Filtration

Installation, Alignment and Grouting of Reciprocating Equipment

Engine/Compressor Performance and Exhaust Analysis

Ignition Systems

Maintenance and Operation of Slow Speed Natural Gas Engines

Gas Turbines—Monitoring Performance, NOx Control, Governors and Control Systems m Seminars 1. Environmental Update by the TNRCC 2. OSHA1910 Mechanical Integrity and Safety 3. Synthetic Lubricants—Real World Applications 4. Vibration Reduction for Compressors and Piping 1. Troubleshooting Control Systems 2. Engine and Compressor Diagnosis using p/v Diagrams 3. Engine and Compressor Lubrication System Maintenance and Diagnosis

To register using Visa, MasterCard or American Express - Call (713) 743-1060.

For further information about the conference, call (713) 743-1181 or write:

PMACC - c/o University of Houston/Continuing Education • Houston, Texas 77204-3901

Last name 1995 PMACC

FREE ADMISSION ^Z

To exhibit area only. A $25 value. company

Please fill out and present this complimentary pass at the Conference Registration Desk,

Hilton Conference Center, University of Houston, to receive your admittance to the exhibit area.

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Circle 336 on Reader Service Card • Rates can be fixed or floating; • Substitution of asset flexibility can be provided for sales of pledged vessels in lieu of prepayment, thus avoiding break-funding costs; and • Back-end joint ventures can be structured involving shared re- course on aggressive residuals and upside residual sharing.

The degree to which financing can be innovatively structured is a function of: • The size and substance of the borrower or recourse charterer in relation to the size of the financing; • The quality and historical per- formance of the owner/operator; • The quality and projected mar- ket values of the collateral vessels; and • The characteristics of the mar- ket and the borrower's ability to generate adequate cash flow to com- fortably service debt.

Innovative financing generally requires lending to a consolidated, audited business enterprise as lend- ers are somewhat investing in, rather than special-purpose lend- ing to, an owner.

Financing the Growth of the

Industry

Non-bank involvement in financ- ing the maritime industry will con- tinue well into the next century.

Business finance companies like

CIT/Capital Equipment Financing, with an in-depth knowledge of the industry, its needs and its realities, are well-positioned to provide the customized financing needed by the maritime industry.

The CIT Group / Capital Equip- ment Financing is an operating unit of The CIT Group and has extensive experience financing industries ranging from maritime and intermodal shipping, air transpor- tation and rail, to mining, energy, healthcare and high technology.

CIT I CEFhas beenproviding financ- ing to the maritime industry for more than 30 years. Last year, the

Company provided $5 billion in new loan and lease capital to domestic and international businesses. Ap- proximately one-third of that capi- tal funded transportation equipment asset-based transactions, with more than $200 million having been used for financing maritime and intermodal assets — ship and ma- rine containers. Founded in 1908,

The CIT Group, Inc. is a $15 billion asset-based lender. Mr. Serepca has 25 years of experience in the industry.

For more information on CIT

Circle 78 on Reader Service Card 34 Maritime Reporter/Engineering News