Yacht Finance

A significant part of our yacht practice involves advising buyers on the finance of their acquisitions, both for newbuildings and in connection with the purchase of second-hand yachts. We also advise owners on the refinance of their current boats. We can adapt our work to our client’s particular requirements, whether they want a detailed negotiation and advice on the terms of a high value loan for the largest of mega yachts or just a ‘light touch’ review of short form documents for a smaller loan.

Our lawyers have assisted with obtaining luxury yacht finance from UK & US lenders and with superyacht finance from banks in Switzerland, France, Italy, the UK and the US. We have excellent working relationships with all the major lenders and finance brokers who are happy to recommend us to their customers and clients.

Our expertise on the law relating to guarantees means that we can also provide guarantors – personal or corporate – with independent legal advice where this form of security is required as part of the yacht finance transaction.

We work with legal correspondents from across the globe, including all the usual offshore jurisdictions, that may be involved in the ownership structure, location of the mortgaged yacht and other security assets. Furthermore, we can provide Marshall Islands and Liberian legal opinions from within the firm.

In assisting with such finance, we negotiate and advise on all the above lenders’ standard form documents including: Loan Agreements, Mortgages, Deed of Covenants, General Assignments, Construction Assignments, Charter Assignments, Personal Guarantees, Corporate Guarantees, Share Pledges, Charge & Mortgages, Account Pledges, Security over Artwork and other assets, Subordination Agreements and Flag, Title & Security Registration.

In addition to the loan and security documents we also assist clients to prepare and discharge the conditions precedent to signing and drawdown, and with the drawdown itself to part pay the newbuild delivery instalment or acquisition sales price on delivery.

Recent examples of our work include:

• Advising a Middle Eastern client on the finance of the construction of a 50m Dutch newbuild by a Swiss lender.
• Acting for a European client on the finance from a European branch of a US bank for a yacht acquisition.
• Assisting an African client on the finance of a UK built yacht by a US bank.
• Acting for a UK client on the re-finance of a yacht by a UK lender.
• Advising a Middle Eastern client on a personal guarantee.
• Acting for the borrower in connection with a $50m+ loan issued by a US bank secured against a 70m+ motor yacht.
• Acting for the borrower on the financing of a 30m newbuild motor yacht.