Delaware
|
000-53919
|
26-3215092
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
3 Park Avenue, 36th Floor
New York, New York 10016
|
||
(Address of Principal Executive Offices) |
(212) 418-4700
|
||
(Registrant’s telephone number, including area code)
|
Not applicable
|
||
(Former name or former address, if changed since last report)
|
ICON EQUIPMENT AND CORPORATE INFRASTRUCTURE FUND FOURTEEN, L.P.
|
|
By: ICON GP 14, LLC, its General Partner
|
|
Dated: December 14, 2015
|
By: /s/ Michael A. Reisner
|
Michael A. Reisner
|
|
Co-President and Co-Chief Executive Officer
|
Portfolio Overview | ||
SECOND QUARTER 2015 |
Table of Contents | |||
Introduction to Portfolio Overview
|
1 | ||
Investment Following the Quarter
|
1 | ||
Disposition During the Quarter | 1 | ||
Dispositions Following the Quarter | 2 | ||
Portfolio Overview | 2 | ||
Revolving Line of Credit | 5 | ||
Performance Analysis | 6 | ||
Transactions with Related Parties | 7 | ||
Financial Statements | 10 | ||
Forward Looking Statements | 14 | ||
Additional Information | 14 |
Challenge Mfg. Company, LLC | |||
Investment Date:
Structure:
Expiration Date:
Purchase Price:
The Fund's Investment:
|
7/10/2015
Lease
7/9/2020
$9,934,000
$3,974,000
|
Collateral:
|
Auxiliary suupport equipment and robots used in the production of certain automobiles.
|
Go Frac, LLC
|
|||
Structure:
|
Lease
|
Collateral:
|
Oil well fracking, cleaning and services equipment.
|
Disposition Date:
|
5/14/2015
|
||
The Fund's Investment:
|
$4,548,000
|
||
Total Proceeds Received:
|
$4,553,000
|
Vas Aero Services, LLC
|
|||
Structure:
|
Loan
|
Collateral:
|
Aircraft engines and related parts.
|
Disposition Date:
|
7/23/2015
|
||
The Fund's Investment:
|
$6,000,000
|
||
Total Proceeds Received:
|
$4,542,000
|
||
NARL Marketing Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
A network of bulk fuel storage terminals, convenience store-type gas stations, including related fuel pumps, storage tanks and real estate.
|
Disposition Date:
|
8/6/2015
|
||
The Fund's Investment:
|
$3,000,000
|
||
Total Proceeds Received:
|
$3,345,000
|
||
Coach Am Group Holdings Corp.
|
|||
Structure:
|
Lease
|
Collateral:
|
Motor coach buses.
|
Disposition Date:
|
8/24/2015
|
||
The Fund's Investment:
|
$10,368,000
|
||
Total Proceeds Received:
|
$15,039,000
|
||
Cenveo Corporation
|
|||
Structure:
|
Loan
|
Collateral:
|
Printing, folding and packaging equipment used in the production of commercial envelopes.
|
Disposition Date:
|
9/30/2015
|
||
The Fund's Investment:
|
$9,000,000
|
||
Total Proceeds Received:
|
$10,404,000
|
Geden Holdings Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
A crude oil tanker and two supramax bulk carrier vessels.
|
Expiration Dates:
|
6/21/2016
|
||
9/30/2017
|
|||
Ezra Holdings Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Offshore support vessel.
|
Expiration Date:
|
6/3/2021
|
||
Coach Am Group Holdings Corp.
|
|||
Structure:
|
Lease
|
Collateral:
|
Motor coach buses.
|
Expiration Date:
|
5/31/2015
|
||
Höegh Autoliners Shipping AS
|
|||
Structure:
|
Lease
|
Collateral:
|
A car carrier vessel.
|
Expiration Date:
|
12/21/2020
|
||
Vas Aero Services, LLC
|
|||
Structure:
|
Loan
|
Collateral:
|
Aircraft engines and related parts.
|
Maturity Date:
|
10/6/2014*
|
AET, Inc. Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two Very Large Crude Carriers.
|
Expiration Date:
|
3/29/2021
|
||
Exopack, LLC
|
|||
Structure:
|
Lease
|
Collateral:
|
Film extrusion line and flexographic printing presses.
|
Expiration Date:
|
10/31/2018
|
||
Ardmore Shipholding Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two chemical tanker vessels.
|
Expiration Date:
|
4/3/2018
|
||
Jurong Aromatics Corporation Pte. Ltd.
|
|||
Structure:
|
Loan
|
Collateral:
|
Equipment, plant, and machinery associated with the condensate splitter and aromatics complex located on Jurong Island, Signapore.
|
Maturity Date:
|
1/16/2021
|
||
Cenveo Corporation
|
|||
Structure:
|
Loan
|
Collateral:
|
Printing, folding and packaging equipment used in the production of commercial envelopes.
|
Maturity Date:
|
10/1/2018
|
||
Pacific Radiance Ltd.
|
|||
Structure:
|
Lease
|
Collateral:
|
Offshore supply vessel.
|
Expiration Date:
|
6/12/2024
|
||
Técnicas Marítimas Avanzadas, S.A. de C.V.
|
|||
Structure:
|
Loan
|
Collateral:
|
Four platform supply vessels.
|
Maturity Date:
|
8/27/2019
|
||
Geokinetics, Inc.
|
|||
Structure:
|
Lease
|
Collateral:
|
Land-based seismic testing equipment.
|
Expiration Date: | 8/31/2017 | ||
Premier Trailer Leasing, Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
Trailers.
|
Maturity Date:
|
9/24/2020
|
||
NARL Marketing Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
A network of bulk fuel storage terminals, convenience store-type gas stations, including related fuel pumps, storage tanks and real estate.
|
Maturity Date:
|
11/13/2017
|
||
Sargeant Marine, Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
Asphalt carrier vessel.
|
Maturity Date:
|
12/31/2018
|
||
Siva Global Ships Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two liquefied petroleum gas tanker vessels.
|
Expiration Dates:
|
3/28/2022
4/8/2022
|
||
Blackhawk Mining, LLC
|
|||
Structure:
|
Lease
|
Collateral:
|
Mining equipment.
|
Expiration Date:
|
2/28/2018
|
||
Capital Invested as of June 30, 2015
|
$307,953,464
|
Leverage Ratio
|
1.04:1*
|
% of Receivables Collected for the Quarter Ended June 30, 2015
|
84.28%**
|
Net Change in Cash per GAAP
Cash Flow Statement
|
Business Operations
Net cash flow generated by our investments,
net of fees and expenses
(CABO)
|
Non-Business Operations
Net Equity Raised
Cash expended to make Investments
and Distributions to Partners
|
Cash Available From Business Operations
|
|||||||||||
for the Period January 1, 2015 through June 30, 2015
|
|||||||||||
Cash balance at January 1, 2015
|
$ |
12,553,252
|
|||||||||
Cash balance at June 30, 2015
|
$ |
12,958,231
|
|||||||||
Net change in cash
|
$ |
404,979
|
|||||||||
Add Back:
|
|||||||||||
Distributions paid to partners from January 1, 2015 through June 30, 2015
|
$ |
10,455,010
|
|||||||||
Investments made during the period
|
|||||||||||
Investment in joint ventures
|
$ |
26,187
|
|||||||||
Investment by noncontrolling interests
|
$ |
(4,624)
|
|||||||||
$ |
21,563
|
||||||||||
Cash Available from Business Operations (CABO)
|
$ |
10,881,552
|
(1)
|
||||||||
(1)
|
Cash available from business operations includes the collection of principal and interest from our investments in notes receivable and finance leases.
|
Fees and other expenses incurred by us to our General Partner or its affiliates were as follows:
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||
Entity
|
Capacity
|
Description
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
ICON Capital, LLC
|
Investment Manager
|
Acquisition fees
|
(1)
|
$
|
-
|
$
|
333,125
|
$
|
-
|
$
|
558,223
|
|||||||
ICON Capital, LLC
|
Investment Manager
|
Management fees
|
(2)
|
341,929
|
981,129
|
1,057,873
|
1,423,677
|
|||||||||||
ICON Capital, LLC | Investment Manager |
Administrative expense reimbursements
|
(2)
|
377,840
|
399,353
|
703,398
|
812,310
|
|||||||||||
$
|
719,769
|
$
|
1,713,607
|
$
|
1,761,271
|
$
|
2,794,210
|
|||||||||||
(1) Amount capitalized and amortized to operations.
|
||||||||||||||||||
(2) Amount charged directly to operations.
|
June 30,
|
December 31,
|
||||||||
|
2015 |
|
2014 | ||||||
(unaudited)
|
|||||||||
Assets | |||||||||
Cash and cash equivalents
|
$
|
12,958,231
|
|
$
|
12,553,252
|
||||
Restricted cash
|
3,150,000
|
7,317,126
|
|||||||
Net investment in finance leases
|
114,534,966
|
118,005,785
|
|||||||
Leased equipment at cost (less accumulated depreciation of $46,277,386 and $41,069,511, respectively)
|
117,543,064
|
122,750,939
|
|||||||
Net investment in notes receivable
|
33,139,264
|
62,731,975
|
|||||||
Note receivable from joint venture
|
2,627,139
|
2,609,209
|
|||||||
Investment in joint ventures
|
18,162,418
|
18,739,125
|
|||||||
Other assets
|
3,833,611
|
3,096,488
|
|||||||
Total assets
|
$
|
305,948,693
|
|
$
|
347,803,899
|
||||
Liabilities and Equity
|
|||||||||
Liabilities:
|
|||||||||
Non-recourse long-term debt
|
$
|
138,926,273
|
|
$
|
152,903,523
|
||||
Derivative financial instruments
|
4,735,550
|
5,379,474
|
|||||||
Deferred revenue
|
1,582,384
|
2,365,892
|
|||||||
Due to General Partner and affiliates, net
|
249,493
|
826,285
|
|||||||
Accrued expenses and other liabilities
|
10,323,041
|
11,114,968
|
|||||||
Total liabilities
|
155,816,741
|
172,590,142
|
|||||||
Commitments and contingencies
|
|||||||||
Equity:
|
|||||||||
Partners' equity:
|
|||||||||
Limited partners
|
137,636,172
|
159,293,140
|
|||||||
General Partner
|
(932,555
|
)
|
(713,798
|
)
|
|||||
Total partners' equity
|
136,703,617
|
158,579,342
|
|||||||
Noncontrolling interests
|
13,428,335
|
16,634,415
|
|||||||
Total equity
|
150,131,952
|
175,213,757
|
|||||||
Total liabilities and equity
|
$
|
305,948,693
|
|
$
|
347,803,899
|
Three Months Ended June 30,
|
|
Six Months Ended June 30, | |||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014 | ||||||||
Revenue:
|
|||||||||||||||
Finance income
|
$
|
2,535,273
|
|
$
|
2,988,260
|
|
$
|
6,051,260
|
|
$
|
6,857,778
|
||||
Rental income
|
5,358,997
|
5,984,439
|
10,742,559
|
13,190,111
|
|||||||||||
Income from investment in joint ventures
|
775,502
|
480,419
|
1,283,945
|
874,020
|
|||||||||||
Gain on sale of assets, net
|
-
|
2,229,898
|
-
|
2,229,898
|
|||||||||||
Other income
|
2,964
|
5,620
|
5,811
|
20,043
|
|||||||||||
Total revenue
|
8,672,736
|
11,688,636
|
18,083,575
|
23,171,850
|
|||||||||||
Expenses:
|
|||||||||||||||
Management fees
|
341,929
|
981,129
|
1,057,873
|
1,423,677
|
|||||||||||
Administrative expense reimbursements
|
377,840
|
399,353
|
703,398
|
812,310
|
|||||||||||
General and administrative
|
592,801
|
515,037
|
1,384,615
|
1,209,950
|
|||||||||||
Credit loss
|
17,923,190
|
78,216
|
19,983,831
|
873,215
|
|||||||||||
Depreciation
|
2,602,077
|
2,613,997
|
5,207,875
|
6,456,485
|
|||||||||||
Interest
|
1,743,292
|
2,232,428
|
3,572,376
|
4,771,791
|
|||||||||||
(Gain) loss on derivative financial instruments
|
(146,762
|
)
|
906,994
|
805,026
|
1,568,344
|
||||||||||
Total expenses
|
23,434,367
|
7,727,154
|
32,714,994
|
17,115,772
|
|||||||||||
Net (loss) income
|
(14,761,631
|
)
|
3,961,482
|
(14,631,419
|
)
|
6,056,078
|
|||||||||
Less: net (loss) income attributable to noncontrolling interests
|
(3,602,114
|
)
|
979,504
|
(3,210,704
|
)
|
1,368,876
|
|||||||||
Net (loss) income attributable to Fund Fourteen
|
$
|
(11,159,517
|
)
|
|
$
|
2,981,978
|
|
$
|
(11,420,715
|
)
|
|
$
|
4,687,202
|
||
Net (loss) income attributable to Fund Fourteen allocable to:
|
|||||||||||||||
Limited partners
|
$
|
(11,047,922
|
)
|
|
$
|
2,952,158
|
|
$
|
(11,306,508
|
)
|
|
$
|
4,640,330
|
||
General Partner
|
(111,595
|
)
|
29,820
|
(114,207
|
)
|
46,872
|
|||||||||
$
|
(11,159,517
|
)
|
|
$
|
2,981,978
|
|
$
|
(11,420,715
|
)
|
|
$
|
4,687,202
|
|||
Weighted average number of limited
|
|||||||||||||||
partnership interests outstanding
|
258,761
|
258,761
|
258,761
|
258,766
|
|||||||||||
Net (loss) income attributable to Fund Fourteen
|
|||||||||||||||
per weighted average limited partnership
|
|||||||||||||||
interest outstanding
|
$
|
(42.70
|
)
|
|
$
|
11.41
|
|
$
|
(43.69
|
)
|
|
$
|
17.93
|
Partners' Equity
|
|||||||||||||||||||
Limited Partnership Interests
|
Limited Partners
|
General Partner
|
Total Partners' Equity
|
Noncontrolling Interests
|
Total Equity
|
||||||||||||||
Balance, December 31, 2014
|
258,761
|
$
|
159,293,140
|
$
|
(713,798)
|
$
|
158,579,342
|
$
|
16,634,415
|
$
|
175,213,757
|
||||||||
Net (loss) income
|
-
|
(258,586)
|
(2,612)
|
(261,198)
|
391,410
|
130,212
|
|||||||||||||
Distributions
|
-
|
(5,175,230)
|
(52,275)
|
(5,227,505)
|
-
|
(5,227,505)
|
|||||||||||||
Balance, March 31, 2015 (unaudited)
|
258,761
|
153,859,324
|
(768,685)
|
153,090,639
|
17,025,825
|
170,116,464
|
|||||||||||||
Net loss
|
-
|
(11,047,922)
|
(111,595)
|
(11,159,517)
|
(3,602,114)
|
(14,761,631)
|
|||||||||||||
Distributions
|
-
|
(5,175,230)
|
(52,275)
|
(5,227,505)
|
-
|
(5,227,505)
|
|||||||||||||
Investment by noncontrolling interest
|
-
|
-
|
-
|
-
|
4,624
|
4,624
|
|||||||||||||
Balance, June 30, 2015 (unaudited)
|
258,761
|
$
|
137,636,172
|
$
|
(932,555)
|
$
|
136,703,617
|
$
|
13,428,335
|
$
|
150,131,952
|
Six Months Ended June 30,
|
|||||||
|
2015
|
2014
|
|||||
Cash flows from operating activities:
|
|||||||
Net (loss) income
|
$
|
(14,631,419
|
)
|
$
|
6,056,078
|
||
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|||||||
Finance income, net of costs and fees
|
497,214
|
(784,850
|
)
|
||||
Income from investment in joint ventures
|
(1,019,118
|
)
|
(874,020
|
)
|
|||
Net gain on sale of assets
|
-
|
(2,229,898
|
)
|
||||
Depreciation
|
5,207,875
|
6,456,485
|
|||||
Credit loss
|
19,983,831
|
873,215
|
|||||
Interest expense from amortization of debt financing costs
|
354,084
|
383,646
|
|||||
Interest expense, other
|
221,550
|
210,200
|
|||||
Gain on derivative financial instruments
|
(643,924
|
)
|
(82,397
|
)
|
|||
Changes in operating assets and liabilities:
|
|||||||
Restricted cash
|
4,167,126
|
6,303,104
|
|||||
Other assets, net
|
(1,091,207
|
)
|
1,679,661
|
||||
Accrued expenses and other liabilities
|
(1,013,477
|
)
|
(4,268,043
|
)
|
|||
Deferred revenue
|
(783,508
|
)
|
(1,024,368
|
)
|
|||
Due to General Partner and affiliates
|
(576,792
|
)
|
(178,675
|
)
|
|||
Distributions from joint ventures
|
898,629
|
372,939
|
|||||
Net cash provided by operating activities
|
11,570,864
|
12,893,077
|
|||||
Cash flows from investing activities:
|
|||||||
Proceeds from sale of equipment
|
-
|
16,368,941
|
|||||
Principal received on finance leases
|
1,497,000
|
835,975
|
|||||
Investment in joint ventures
|
(26,187
|
)
|
(5,353,420
|
)
|
|||
Distributions received from joint ventures in excess of profits
|
723,383
|
119,707
|
|||||
Investment in notes receivable
|
-
|
(421,889
|
)
|
||||
Principal and sale proceeds received on notes receivable
|
11,067,555
|
24,331,246
|
|||||
Net cash provided by investing activities
|
13,261,751
|
35,880,560
|
|||||
Cash flows from financing activities:
|
|||||||
Repayment of non-recourse long-term debt
|
(13,977,250
|
)
|
(27,180,221
|
)
|
|||
Investment by noncontrolling interests
|
4,624
|
18,484
|
|||||
Distributions to partners
|
(10,455,010
|
)
|
(10,455,228
|
)
|
|||
Repurchase of limited partnership interests
|
-
|
(7,178
|
)
|
||||
Net cash used in financing activities
|
(24,427,636
|
)
|
(37,624,143
|
)
|
|||
Net increase in cash and cash equivalents
|
404,979
|
11,149,494
|
|||||
Cash and cash equivalents, beginning of period
|
12,553,252
|
9,526,625
|
|||||
Cash and cash equivalents, end of period
|
$
|
12,958,231
|
$
|
20,676,119
|
|||
Supplemental disclosure of cash flow information:
|
|||||||
Cash paid for interest
|
$
|
5,264,025
|
$
|
4,650,360
|
·
|
Visiting www.iconinvestments.com, or
|
·
|
Visiting www.sec.gov, or
|
·
|
Writing us at: Angie Seenauth c/o ICON Investments, 3 Park Avenue, 36th Floor, New York, NY 10016
|