For those of you who would like to take advantage of our Luck O' the Irish SALE but prefer not to make payments online, you are welcome to send us a check or money order in the amount of $114.12 for a 3-year AD-FREE Premium Service Bundle or $190.20 for a 5-year Bundle. Make checks or money orders payable in US funds to "Investor Village" and send to: Investor Village, P.O. Box 2958, Marrero, LA 70073.
As many of you know, we operate on the honor system around here. So, in closing out our Luck O' the Irish SALE, we wanted to advise those of you who plan to pay by check or money order that you can send a PM to Admin informing us of your intention. We will then upgrade your account for 7 days, allowing you to enjoy our ad-free premium service now and giving you a reasonable amount of time to get your payment in.
When I see SFL with equity equal to 34% of total assets I thiink of a typical regulated electric utility a few years back. In that world a debt to equity ratio of 2:1 was pretty common and some were much higher. Few were at 1:1. The shipping business relies on being able to raise money to replace older vessels with newer vessels (renewing the fleet) while maintaining an all-in positive cash flow on each one. That can be problematic when there is a downturn in a sector (offshore, dry bulk, tankers, containerships) but SFL doesn't acquire vessels that don't already have long term charters (more than 3 years) so that mitigates the risk. The greatest risk is a default by a counterparty. This seemed like a real possibility when SeaDrill worked its way through a restructuring to avoid bankruptcy. SDRL has not restructured but is still awaiting for offshore to strengthen but the SDRL charters don't end until 2024 or thereabouts and I don't think SDRL has missed a payment to SFL on the 3 rigs they lease, although the rates may have been revised downwards.