Last July, Key Equipment Finance, a division of KeyBank, served as the lead arranger of a group syndication providing $177.5 million in financing for Pasha Hawaii’s second liquefied natural gas (LNG)-powered container ship, the MV Janet Marie. Based in Honolulu, Pasha Hawaii is one of the nation’s leading shipping and logistics companies.
The MV Janet Marie is a 774-foot, LNG-fueled container ship used for transporting containers between Hawaii and the mainland United States. The vessel will accompany its sister Pasha Hawaii LNG-fueled ship, the MV George III, which Key Equipment Finance also helped as lead arranger.
“We are thrilled to work with Pasha Hawaii once again and deliver a financing solution to help with construction of the second LNG-powered vessel to be operated by the company,” said Phil Turner, executive vice president and managing director for capital markets, Key Equipment Finance. “This solution was not without challenges, considering world events over the past few years, but Key’s financing team focused on supporting our client, with the backing of a diversified bank group. The highly efficient and expertly designed MV Janet Marie will join MV George III in servicing Hawaii for years to come.”
MV Janet Marie and MV George III are two of the first LNG-powered vessels to serve the West Coast, operating on LNG from day one in service, and substantially improving the vessels’ environmental footprint.
“We are pleased to complete financing on our second vessel, the MV Janet Marie – another successful deal worked with the skilled team at Key through unconventional times, including an international pandemic, followed by supply chain challenges, labor shortages and uncertain economic times,” said George Pasha, IV, president and CEO of The Pasha Group, the parent company of Pasha Hawaii. “MV Janet Marie joins MV George III, both named in honor of my late parents, as state-of the art LNG-powered vessels built specifically to meet the needs of the mainland/Hawaii market and minimize environmental impact.”
Pasha Hawaii notes that MV Janet Marie “surpasses the International Maritime Organization (IMO) 2030 emission standards for ocean vessels, accompanying its sister ship, MV George III, in representing the most technologically advanced and environmentally friendly vessels to serve Hawaii. Energy efficiencies are also achieved with a state-of-the-art engine, an optimized hull form, and an underwater propulsion system with a high-efficiency rudder and propeller.”
Key Equipment Finance, a division of KeyBank, has been in the equipment, software and services finance business for over 50 years. With headquarters outside Denver, Colorado, Key Equipment Finance manages approximately $14.9 billion in assets and originates approximately $5.5 billion of equipment financing annually.
KeyCorp’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key has assets of approximately $198 billion at March 31, 2023. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association. Key also provides corporate and investment banking products, including merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name.
Pasha Hawaii, an independent operating subsidiary of The Pasha Group, is a domestic ocean shipping companies serving Hawaii from the continental United States. The company operates a fleet of Jones Act-qualified vessels and operates out of multiple port terminals.
Reprinted from Marine Construction Magazine Issue V, 2023.
