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: February 23, 2016
|
By: /s/ Michael A. Reisner
|
Michael A. Reisner
|
|
Co-President and Co-Chief Executive Officer
|
Portfolio Overview | ||
THIRD QUARTER 2015 |
Table of Contents | |||
Introduction to Portfolio Overview
|
1 | ||
Investment During the Quarter
|
1 | ||
Investment Following the Quarter
|
1 | ||
Dispositions During the Quarter | 2 | ||
Portfolio Overview | 2 | ||
Commentary | 6 | ||
Revolving Line of Credit | 7 | ||
Performance Analysis | 7 | ||
Transactions with Related Parties | 8 | ||
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.
|
Fugro N.V. | |||
Investment Dates:
Structure:
Expiration Dates:
Purchase Price:
The Fund's Investment:
|
12/24/2015
1/8/2016
Lease
12/23/2027
1/7/2028
$130,000,000
$3,240,000
|
Collateral:
|
Two mini geotechnical drilling vessels.
|
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
|
||
*See commentary | |||
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
|
|||
Current Status: | See Commentary | ||
Ezra Holdings Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Offshore support vessel.
|
Expiration Date:
|
6/3/2021
|
||
Current Status: | Performing | ||
Höegh Autoliners Shipping AS
|
|||
Structure:
|
Lease
|
Collateral:
|
A car carrier vessel.
|
Expiration Date:
|
12/21/2020
|
||
Current Status: | Performing | ||
AET, Inc. Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two Very Large Crude Carriers.
|
Expiration Date:
|
3/29/2021
|
||
Current Status: | Performing | ||
Exopack, LLC
|
|||
Structure:
|
Lease
|
Collateral:
|
Film extrusion line and flexographic printing presses.
|
Expiration Date:
|
10/31/2018
|
||
Current Status: | Performing | ||
Ardmore Shipholding Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two chemical tanker vessels.
|
Expiration Date:
|
4/3/2018
|
||
Current Status: | Performing | ||
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
|
||
Current Status: | See Commentary | ||
Pacific Radiance Ltd.
|
|||
Structure:
|
Lease
|
Collateral:
|
Offshore supply vessel.
|
Expiration Date:
|
6/12/2024
|
||
Current Status: | Performing | ||
Técnicas Marítimas Avanzadas, S.A. de C.V.
|
|||
Structure:
|
Loan
|
Collateral:
|
Four platform supply vessels.
|
Maturity Date:
|
8/27/2019
|
||
Current Status: | See Commentary | ||
Geokinetics, Inc.
|
|||
Structure:
|
Lease
|
Collateral:
|
Land-based seismic testing equipment.
|
Expiration Date: | 8/31/2017 | ||
Current Status: | Performing | ||
Premier Trailer Leasing, Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
Trailers.
|
Maturity Date:
|
9/24/2020
|
||
Current Status: | Performing | ||
Sargeant Marine, Inc.
|
|||
Structure:
|
Loan
|
Collateral:
|
Asphalt carrier vessel.
|
Maturity Date:
|
12/31/2018
|
||
Current Status: | Performing | ||
Siva Global Ships Limited
|
|||
Structure:
|
Lease
|
Collateral:
|
Two liquefied petroleum gas tanker vessels.
|
Expiration Dates:
|
3/28/2022
4/8/2022
|
||
Current Status: | Performing | ||
Blackhawk Mining, LLC
|
|||
Structure:
|
Lease
|
Collateral:
|
Mining equipment.
|
Expiration Date:
|
2/28/2018
|
||
Current Status: | Performing | ||
Challenge Mfg. Company, LLC | |||
Structure:
Expiration Date:
Current Status
|
Lease
7/9/2020
Performing
|
Collateral:
|
Auxiliary suupport equipment and robots used in the production of certain automobiles.
|
Capital Invested as of September 30, 2015
|
$312,026,452
|
Leverage Ratio
|
1.11:1*
|
% of Receivables Collected for the Quarter Ended September 30, 2015
|
66.53%**
|
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 September 30, 2015
|
|||||||||||
Cash balance at January 1, 2015
|
$ |
12,553,252
|
|||||||||
Cash balance at September 30, 2015
|
$ |
10,530,214
|
|||||||||
Net change in cash
|
$ |
(2,023,038
|
) | ||||||||
Add Back:
|
|||||||||||
Distributions paid to partners from January 1, 2015 through September 30, 2015
|
$ |
15,682,515
|
|||||||||
Investments made during the period
|
|||||||||||
Investment in joint ventures
|
$ |
4,019,702
|
|||||||||
Investment by noncontrolling interests
|
$ |
(6,516
|
) | ||||||||
$ |
4,013,186
|
||||||||||
Cash Available from Business Operations (CABO)
|
$ |
17,672,663
|
(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 September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||
Entity
|
Capacity
|
Description
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
ICON Capital, LLC
|
Investment Manager
|
Acquisition fees
|
(1)
|
$
|
99,341
|
$
|
289,694
|
$
|
99,341
|
$
|
847,917
|
|||||||
ICON Capital, LLC
|
Investment Manager
|
Management fees
|
(2)
|
651,036
|
510,038
|
1,708,909
|
1,933,715
|
|||||||||||
ICON Capital, LLC | Investment Manager |
Administrative expense reimbursements
|
(2)
|
316,697
|
396,443
|
1,020,095
|
1,208,753
|
|||||||||||
$
|
1,067,074
|
$
|
1,196,175
|
$
|
2,828,345
|
$
|
3,990,385
|
|||||||||||
(1) Amount capitalized and amortized to operations.
|
||||||||||||||||||
(2) Amount charged directly to operations.
|
September 30,
|
December 31,
|
||||||||
|
2015 |
|
2014 | ||||||
(unaudited)
|
|||||||||
Assets | |||||||||
Cash and cash equivalents
|
$
|
10,530,214
|
|
$
|
12,553,252
|
||||
Restricted cash
|
3,150,000
|
7,317,126
|
|||||||
Net investment in finance leases
|
103,166,915
|
118,005,785
|
|||||||
Leased equipment at cost (less accumulated depreciation of $43,358,302 and $41,069,511, respectively)
|
111,077,465
|
122,750,939
|
|||||||
Net investment in notes receivable
|
17,638,645
|
62,731,975
|
|||||||
Note receivable from joint venture
|
2,622,196
|
2,609,209
|
|||||||
Investment in joint ventures
|
21,731,115
|
18,739,125
|
|||||||
Other assets
|
1,960,025
|
3,096,488
|
|||||||
Total assets
|
$
|
271,876,575
|
|
$
|
347,803,899
|
||||
Liabilities and Equity
|
|||||||||
Liabilities:
|
|||||||||
Non-recourse long-term debt
|
$
|
126,542,627
|
|
$
|
152,903,523
|
||||
Derivative financial instruments
|
5,151,159
|
5,379,474
|
|||||||
Deferred revenue
|
1,590,014
|
2,365,892
|
|||||||
Due to General Partner and affiliates, net
|
344,764
|
826,285
|
|||||||
Accrued expenses and other liabilities
|
9,183,086
|
11,114,968
|
|||||||
Total liabilities
|
142,811,650
|
172,590,142
|
|||||||
Commitments and contingencies
|
|||||||||
Equity:
|
|||||||||
Partners' equity:
|
|||||||||
Limited partners
|
118,440,775
|
159,293,140
|
|||||||
General Partner
|
(1,126,448
|
)
|
(713,798
|
)
|
|||||
Total partners' equity
|
117,314,327
|
158,579,342
|
|||||||
Noncontrolling interests
|
11,750,598
|
16,634,415
|
|||||||
Total equity
|
129,064,925
|
175,213,757
|
|||||||
Total liabilities and equity
|
$
|
271,876,575
|
|
$
|
347,803,899
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30, | |||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014 | ||||||||
Revenue:
|
|||||||||||||||
Finance income
|
$
|
3,201,527
|
|
$
|
3,633,794
|
|
$
|
9,252,787
|
|
$
|
10,491,572
|
||||
Rental income
|
5,740,124
|
5,430,323
|
16,482,683
|
18,620,434
|
|||||||||||
Income from investment in joint ventures
|
574,774
|
537,939
|
1,858,719
|
1,411,959
|
|||||||||||
Gain on sale of assets, net
|
15,314
|
36,339
|
15,314
|
2,266,237
|
|||||||||||
Other income
|
1,973
|
21,778
|
7,784
|
41,821
|
|||||||||||
Total revenue
|
9,533,712
|
9,660,173
|
27,617,287
|
32,832,023
|
|||||||||||
Expenses:
|
|||||||||||||||
Management fees
|
651,036
|
510,038
|
1,708,909
|
1,933,715
|
|||||||||||
Administrative expense reimbursements
|
316,697
|
396,443
|
1,020,095
|
1,208,753
|
|||||||||||
General and administrative
|
508,090
|
665,121
|
1,892,705
|
1,875,071
|
|||||||||||
Credit loss
|
18,813,180
|
(11,084
|
) |
38,797,011
|
862,131
|
||||||||||
Depreciation
|
2,455,913
|
2,615,854
|
7,663,788
|
9,072,339
|
|||||||||||
Interest
|
1,663,597
|
2,083,712
|
5,235,973
|
6,855,503
|
|||||||||||
Loss (gain) on derivative financial instruments
|
1,109,113
|
|
(140,417
|
) |
1,914,139
|
1,427,927
|
|||||||||
Total expenses
|
25,517,626
|
6,119,667
|
58,232,620
|
23,235,439
|
|||||||||||
Net (loss) income
|
(15,983,914
|
)
|
3,540,506
|
(30,615,833
|
)
|
9,596,584
|
|||||||||
Less: net (loss) income attributable to noncontrolling interests
|
(1,822,129
|
)
|
605,000
|
(5,032,833
|
)
|
1,973,876
|
|||||||||
Net (loss) income attributable to Fund Fourteen
|
$
|
(14,161,785
|
)
|
|
$
|
2,935,506
|
|
$
|
(25,582,500
|
)
|
|
$
|
7,622,708
|
||
Net (loss) income attributable to Fund Fourteen allocable to:
|
|||||||||||||||
Limited partners
|
$
|
(14,020,167
|
)
|
|
$
|
2,906,151
|
|
$
|
(25,326,675
|
)
|
|
$
|
7,546,481
|
||
General Partner
|
(141,618
|
)
|
29,355
|
(255,825
|
)
|
76,227
|
|||||||||
$
|
(14,161,785
|
)
|
|
$
|
2,935,506
|
|
$
|
(25,582,500
|
)
|
|
$
|
7,622,708
|
|||
Weighted average number of limited
|
|||||||||||||||
partnership interests outstanding
|
258,761
|
258,761
|
258,761
|
258,765
|
|||||||||||
Net (loss) income attributable to Fund Fourteen
|
|||||||||||||||
per weighted average limited partnership
|
|||||||||||||||
interest outstanding
|
$
|
(54.18
|
)
|
|
$
|
11.23
|
|
$
|
(97.88
|
)
|
|
$
|
29.16
|
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
|
||||||||
Net Loss | - | (14,020,167 | ) | (141,618 | ) | (14,161,785 | ) | (1,822,129 | ) | (15,983,914) | |||||||||
Distributions | - | (5,175,230 | ) | (52,275 | ) | (5,227,505 | ) | - | (5,227,505) | ||||||||||
Investment by noncontrolling interest | - | - | - | - | 144,392 | 144,392 | |||||||||||||
Balance, September 30, 2015 (unaudited) | 258,761 | $ | 118,440,775 | $ | (1,126,448 | ) | $ | 117,314,327 | $ | 11,750,598 | $ | 129,064,925 |
Nine Months Ended September 30,
|
|||||||
|
2015
|
2014
|
|||||
Cash flows from operating activities:
|
|||||||
Net (loss) income
|
$
|
(30,615,333
|
)
|
$
|
9,596,584
|
||
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|||||||
Finance income, net of costs and fees
|
558,840
|
(2,479,621
|
)
|
||||
Income from investment in joint ventures
|
(1,593,893
|
)
|
(1,411,959
|
)
|
|||
Net gain on sale of assets
|
(15,314
|
) |
(2,266,237
|
)
|
|||
Depreciation
|
7,663,788
|
9,072,339
|
|||||
Credit loss
|
38,797,011
|
862,131
|
|||||
Interest expense from amortization of debt financing costs
|
526,121
|
404,747
|
|||||
Interest expense, other
|
334,529
|
317,392
|
|||||
Gain on derivative financial instruments
|
(228,315
|
)
|
(1,008,395
|
)
|
|||
Paid-in-kind interest | (1,769,429 | ) | - | ||||
Changes in operating assets and liabilities:
|
|||||||
Restricted cash
|
4,167,126
|
4,963,836
|
|||||
Other assets, net
|
610,342
|
|
3,015,519
|
||||
Accrued expenses and other liabilities
|
(2,266,411
|
)
|
(3,846,696
|
)
|
|||
Deferred revenue
|
(775,878
|
)
|
(1,008,942
|
)
|
|||
Due to General Partner and affiliates
|
(339,021
|
)
|
(194,704
|
)
|
|||
Distributions from joint ventures
|
1,477,992
|
751,412
|
|||||
Net cash provided by operating activities
|
16,532,155
|
16,767,406
|
|||||
Cash flows from investing activities:
|
|||||||
Proceeds from sale of equipment
|
4,025,000
|
16,599,540
|
|||||
Principal received on finance leases
|
1,996,149
|
835,975
|
|||||
Investment in joint ventures
|
(4,019,702
|
)
|
(9,110,035
|
)
|
|||
Distributions received from joint ventures in excess of profits
|
1,143,613
|
681,626
|
|||||
Investment in notes receivable
|
-
|
(7,031,539
|
)
|
||||
Principal and sale proceeds received on notes receivable
|
20,336,642
|
30,788,003
|
|||||
Net cash provided by investing activities
|
23,481,702
|
32,763,570
|
|||||
Cash flows from financing activities:
|
|||||||
Repayment of non-recourse long-term debt
|
(26,360,896
|
)
|
(29,795,037
|
)
|
|||
Investment by noncontrolling interests
|
6,516
|
20,095
|
|||||
Distributions to noncontrolling interests | - | (53,400 | ) | ||||
Distributions to partners
|
(15,682,515
|
)
|
(15,682,733
|
)
|
|||
Repurchase of limited partnership interests
|
-
|
(7,178
|
)
|
||||
Net cash used in financing activities
|
(42,036,895
|
)
|
(45,518,253
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
(2,023,038
|
) |
4,012,723
|
||||
Cash and cash equivalents, beginning of period
|
12,553,252
|
9,526,625
|
|||||
Cash and cash equivalents, end of period
|
$
|
10,530,214
|
$
|
13,539,348
|
|||
Supplemental disclosure of cash flow information:
|
|||||||
Cash paid for interest
|
$
|
7,529,277
|
$
|
6,850,046
|
|||
Supplemental disclosure of non-cash financing activities: | |||||||
Balance due to noncontrolling interest deemed contribution | $ | 142,500 | $ |
-
|
·
|
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
|