Showing posts with label Coastal Villages. Show all posts
Showing posts with label Coastal Villages. Show all posts

Sunday, March 2, 2014

The power of the ballot box

As we've reported previously here on Deckboss, one of Alaska's six Community Development Quota organizations — Coastal Villages Region Fund — believes it is getting screwed on fish and crab catch shares.

Coastal argues its allocations are disproportionately small relative to the large population in its region.

That means CDQ companies representing smaller populations enjoy outsized catch shares, Coastal says.

Thus far, Alaska's congressional delegation has rebuffed Coastal's requests to rebalance the CDQ allocations, which have been in place for several years.

Now Coastal is mounting a voter registration drive, which would seem a warning to any elected official not onboard with rebalancing.

“Honestly, we lack the political savvy that some individuals from other smaller CDQ groups possess, but our sheer voting power is a force to be reckoned with," says Coastal's Dawson Hoover. "We are being politically discriminated against because of these unjust allocations."

Sunday, December 22, 2013

Sharing the wealth

Coastal Villages Region Fund has approved a second round of funding for its People Propel initiative.

Coastal is an Anchorage-based company operating under the federal Community Development Quota program. It manages commercial fish harvests on behalf of a group of Bering Sea villages in the area of the Kuskokwim River delta.

With People Propel, Coastal offers village residents substantial subsidies for the purchase of boats, motors and nets.

Coastal evidently is doing great, certainly well enough to help buy some outboard boats and fishing gear.

Coastal's executive director, Morgen Crow, drew a $475,000 salary plus a $420,000 bonus in 2012, the company's latest annual report shows.

Six other staffers received in excess of $205,000.

Thursday, December 20, 2012

A very good year

Eye-opening compensation levels at some of Alaska's six Community Development Quota companies are old news. But still interesting.

The example cited most often is that of Morgen Crow, executive director at Coastal Villages Region Fund. He made $475,000 in 2011, according to the company's latest annual report.

You might be surprised at who ranked second and third behind Crow on Coastal's list of top-paid personnel.

They were Robert Thelen, skipper of the Coastal-owned crab boat North Sea ($356,582), and Owen Kvinge, skipper of another company crabber, the Arctic Sea ($347,502).

Tuesday, October 30, 2012

Millions to spare

Coastal Villages Region Fund is having a fine year, with revenue from its Bering Sea fishing operations projected to reach almost $100 million.

That's better than expected, so the Anchorage-based company plans to break off a $2 million bonus for its 20 member villages in Western Alaska.

The money will go to village governing bodies, mainly tribal councils.

Each village can use its share of the $2 million for purposes such as supplying the needy with heating oil, providing services to elders, paying for public safety, or repairing and marking trails, Coastal says.

You might already know that Coastal is the biggest of Alaska's six Community Development Quota companies in terms of revenue.

But nevermind that!

Coastal now reckons it is "the largest Alaskan-owned seafood company in history."

Tuesday, April 12, 2011

Legislature ponders oil-fueled spending spree

Only five days remain in the legislative session, and we're getting down to the really fun part — consideration of the capital budget.

The capital budget is essentially a long list of earmarks for state and local projects, everything from airport upgrades to zoo equipment.

Legislators fund this annual spendorama with Alaska's vast surplus oil revenue.

Yesterday the Senate Finance Committee rolled out a $2.8 billion capital budget. You can see it here.

Deckboss took a look and found lots of interesting items including $400,000 for a "CDQ Fishing Fleet Relocation Study."

For the background on this, click here.

Wednesday, February 23, 2011

'Historic opportunity'

The Northern Hawk coming to roost in Seward? CVRF photo

Steady followers of Deckboss know we pay a good bit of attention to the federal Community Development Quota program, which allocates shares of Bering Sea fish and crab to six companies for harvest on behalf of Western Alaska villages.

Since the program started in 1992, the companies have acquired numerous fishing vessels.

Many are based in Seattle, long the traditional home port for the bigger boats working in Alaska.

Now one of the CDQ companies, Coastal Villages Region Fund, is seriously looking to move its fleet to Alaska, including its 341-foot flagship, the Northern Hawk.

Coastal is working with the city of Seward, which is stoked at the prospect of landing a new fleet to support jobs and local businesses.

The company and Seward say they have a "historic opportunity" to base Alaska's fishing fleet here, where it belongs.

Naturally, Seward officials are now doing what people do when pursuing big dreams in Alaska — hit up the state Legislature for money.

The city envisions a major port project at its Seward Marine Industrial Center, on the eastern shore of Resurrection Bay, and is asking legislators for $400,000 to conduct preliminary engineering and other studies.

In a rousing letter to Seward's mayor, Coastal touts its "quarter of a billion dollar balance sheet" and supposes that the other five CDQ companies just might follow Coastal's lead in relocating their fleets to Alaska.

The letter and other interesting documents are in this packet of papers obtained from the city of Seward.

Tuesday, February 1, 2011

CDQ partnership buys up Wards Cove assets

Two of Alaska's Community Development Quota companies have put together a deal to buy remnants of Wards Cove, once a fishing and processing powerhouse in Alaska.

The deal includes seven trawl vessels, which evidently command nearly 4 percent of the Bering Sea pollock quota, according to a press release issued today.

One crab vessel also is included.

Alas, the press release fails to say whether Wards Cove is selling its interest in Alyeska Seafoods, the smallest of the three pollock surimi plants at Dutch Harbor. Wards Cove owns the plant jointly with Japanese seafood giant Maruha Nichiro.

Naturally, the sale price was not disclosed.

The two CDQ companies partnering on the Wards Cove purchase are Coastal Villages Region Fund and Norton Sound Economic Development Corp. Both are based in Anchorage and invest in Bering Sea fisheries under a federal program to promote economic development for Western Alaska villages.

Wards Cove, you might know, is an old name in the Alaska fishing industry. The Brindle family founded the company in 1928.

Once a major Alaska salmon processor, Wards Cove fell on hard times and closed its salmon plants in 2002.

But the firm kept its Bering Sea groundfish and crab assets — until now, apparently.

"We have confidence that our legacy is in sound Alaskan hands," Alec Brindle Jr., Wards Cove president, said in the press release announcing the sale.

Thursday, September 9, 2010

Two fish firms snag export honors

Alaska Gov. Sean Parnell yesterday issued this press release naming recipients of the 2010 Governor's North Star Awards for International Excellence.

Two Alaska seafood companies took the honors for export excellence, the Seafood Producers Cooperative based in Bellingham, Wash., and the Anchorage-based Coastal Villages Region Fund.

Here's what the governor's office had to say about the two companies:

Seafood Producers Cooperative, with 520 members, is the oldest, largest and most successful U.S. seafood cooperative. As a co-op of hook-and-line fishermen for salmon, halibut and black cod, SPC and its members are representative of Southeast Alaska’s fishing communities. With significant investment in its Sitka facilities, SPC was recognized for quality processing and its efforts to market seafood internationally.

Coastal Villages Region Fund is a nonprofit corporation comprised of 20 member villages along the Kuskokwim coast, from Scammon Bay to Platinum. CVRF participates in the Western Alaska Community Development Quota program and uses earnings from the Bering Sea pollock, cod and crab fisheries to provide economic development and other opportunities for its 9,300 residents. In 2009, CVRF completed construction of a $40 million salmon processing plant in Platinum. CVRF began direct international marketing and recently opened an office in Japan.

Monday, June 21, 2010

Coastal Villages reorganizes its salmon operations

Here's an interesting news item I wrote for the June issue of Pacific Fishing magazine:

Coastal Villages Region Fund is revamping its processing operations for the upcoming salmon season.

Instead of running two processing plants at Quinhagak and Platinum, the company will consolidate its fish processing in the newer Platinum plant. Quinhagak, meantime, will serve as a buying and icing station.

"The fishermen won't notice any difference," said Trevor McCabe, operations director for Coastal.

Fishermen will be able to deliver their predominantly chum salmon catches dockside at Quinhagak, or to tenders there. The fish then will be hauled south to the Platinum plant, which has a daily freezing capacity of 150,000 pounds.

By consolidating into one plant, Coastal expects to employ 10 to 20 percent fewer processing hands this year compared to last, when nearly 300 were on the payroll. But the company feels the changes are prudent to maintain regional salmon and halibut operations supporting 1,500 fishermen, processors and others, McCabe said.

Coastal is one of six Alaska companies holding catch rights to Bering Sea groundfish and crab under the federal Community Development Quota program. Coastal represents 20 villages in the Kuskokwim River region and uses its substantial pollock revenue to pay for such projects as the $35 million fish plant at Platinum.

The plant opened in July 2009.

Tuesday, May 11, 2010

Big boat in the village?

Deckboss is somewhat dismayed that Coastal Villages Region Fund has yet to put out a public statement about its business split from that big, Seattle-based fishing company, American Seafoods.

But I notice that Coastal, evidently, has relocated already the enormous pollock factory trawler it acquired in the divorce.

According to Coastal's handsomely redesigned website, the home port for the 341-foot Northern Hawk is now Chevak, a Cup'ik Eskimo village of about 920 people in the Yukon-Kuskokwim Delta.

Chevak, of course, is one of 20 villages Coastal represents under the federal Community Development Quota program.

Monday, May 10, 2010

American completes refinancing, Coastal buyout

This just in from American Seafoods:

May 10, 2010

American Seafoods Completes Refinancing and Buyout of Significant Equity Holder

SEATTLE (BUSINESS WIRE) — American Seafoods today announced it completed a refinancing of all the outstanding debt of American Seafoods Group LLC and ASG Consolidated LLC, the direct parent of American Seafoods Group. Concurrent with the refinancing, the Company redeemed the entire ownership interest of a significant equity holder, Coastal Villages Region Fund.

The company refinanced ASG Consolidated's high yield bonds and American Seafoods Group's senior credit facility, significantly extending the maturities on its debt.

"The refinancing represents a significant accomplishment for the company," said Bernt O. Bodal, CEO of American Seafoods. "The fact that we were able to complete a transaction like this in a difficult economic environment is a testament to the strong support of our lending partners and the stellar reputation the company enjoys among the financial community."

Also, in connection with the refinancing, American Seafoods redeemed all of the outstanding equity interests of Coastal Villages in exchange for the pollock catcher-processor Northern Hawk, the freezer-longline vessels Lilli Ann, North Cape and Deep Pacific and certain fishing rights. The completion of the buyout results in Bodal and the rest of the management team increasing their ownership to over 70 percent of the company. As part of the buyout, American will provide management and marketing services to Coastal Villages — enhancing its revenue opportunities over the next few years.

"The buyout offers a terrific opportunity for all of the continuing owners of American Seafoods to increase their ownership stake and positions us well for the long-term growth of the company," Bodal said.

Thursday, April 29, 2010

Dividing the assets

Deckboss has received reliable information about the pending split of Seattle-based American Seafoods and Anchorage-based Coastal Villages Region Fund.

The word is that Coastal, which owns 46 percent of American, will exit the business and take with it the following:

• The Northern Hawk, a 341-foot pollock factory trawler. The vessel is one of American's eight powerful factory ships.

• American subsidiary Pacific Longline Co., with its three big cod freezer longliners: the Deep Pacific, the Lilli Ann and the North Cape.

• A significant chunk of Bering Sea pollock quota.

We still don't have the official press release on this breakup, and we might not for some time.

I've heard for years that relations between the top brass at American and Coastal haven't been great.

For American, which is carrying a lot of debt, the split might be simply a business necessity, especially as the Bering Sea pollock stocks have declined sharply in recent years.

Coastal is one of six Alaska companies operating under the federal Community Development Quota program.

For Coastal, and for the CDQ program in general, this deal appears huge.

CDQ companies long have held partial ownership in some of the North Pacific's top fishing ships. But to own the likes of the Northern Hawk outright would be a first to my knowledge.

I spoke with a couple of Coastal managers the other day, operations director Trevor McCabe and investments director Rich Monroe.

They weren't at liberty to talk about any deal, and I didn't really push them. I figure these things happen when they happen.

Wednesday, April 28, 2010

Something big brewing with American Seafoods?

Deckboss advised you a couple of weeks ago about a possible divorce involving American Seafoods and one of its main owners, Coastal Villages Region Fund.

Now, apparently, Seattle-based American, operator of the largest fleet of Bering Sea pollock factory trawlers, is mounting a major refinancing.

A friend today passed along the following item from some sort of subscriber-based financial news service.

It would take, like, a Goldman Sachs trader to fully understand this thing, but it seems clear this is a big and possibly transformative deal for American.

American Seafoods preps bond deal for refinancing effort

American Seafoods this morning unveiled a $400 million, two-part bond deal that is part of a broader refinancing effort. The deal includes $275 million of six-year (non-call three) subordinated notes issued by American Seafoods Group and $125 million of senior notes with warrants from ASG Consolidated and ASG Finance, according to sources.

Bank of America and Wells Fargo are joint bookrunners on the deal. The notes are being issued under Rule 144A for life.

The units consist of seven-year (non-call three) senior notes and warrants expiring in 2018 to purchase 125,000 common shares representing about a 15% indirect ownership of ASG Consolidated, according to sources. The senior notes are conditionally PIK and the first two interest payments will be paid in kind. The first call on notes is at par plus 75% of the coupon.

The subordinated notes are rated B/B3, with a stable outlook on both sides. S&P also gave these notes a 4 recovery rating, which indicates expectations for average (30-50%) recovery in the event of a payment default. The PIK notes are not rated.

Proceeds from the deal will be used to repay debt. The bond deal accompanies a loan package that includes a $85 million, five-year revolving credit, priced at L+400, and a $390 million, five-year term loan, priced at L+400 with a 1.5% LIBOR floor, offered at 99. Bank of America Merrill Lynch, Wells Fargo and DNB Nordbanken are arranging the loan.

Sunday, April 11, 2010

Catching up with the council

Deckboss spent a good bit of time this weekend hanging around the North Pacific Fishery Management Council, which is meeting through Tuesday here in Anchorage.

This is a meeting that lacks a really big, sexy headliner issue.

But lots of interesting currents are running through the council chamber, and even more through the corridors and bars of the downtown Hilton hotel, where the 11-member panel is encamped.

Here's a sampler:

• You know it's an election year when top politicians start showing up at the fish council. So it was no surprise to see Alaska Gov. Sean Parnell appear and give a little speech on Thursday. Naturally, after the speech came a fundraiser for Parnell, who is running for a new term.

• Jim Balsiger, Alaska chief for the National Marine Fisheries Service, announced it might be months longer before we see a new "biological opinion" on the status of the endangered Steller sea lion. This is a matter of considerable dread for Alaska's billion-dollar bottomfish industry, which very possibly could face painful new restrictions or even a shutdown if the agency determines commercial fishing is jeopardizing the sea lion's recovery or adversely modifying its habitat. Many industry players suspect internal conflict among NMFS scientists could explain the continual delays in rolling out this new BiOp.

• The island community of St. Paul, smack in the middle of the Bering Sea, is very worried about a pending change in crab management. You'll recall that, a few years ago, the king and snow crab fisheries were "rationalized" or divided into fishing, processing and regional shares. Under the rules, some of the crab must be delivered to northern ports including St. Paul, which heavily depends on landings taxes for its economic survival. Well, fishermen and processors want a change to allow crab to be delivered elsewhere in the event of an emergency, such as ice blocking the St. Paul harbor or a tsunami damaging the town's processing plants. St. Paul fears such an emergency exemption could be abused, however, draining the island of crab. Last I heard, a deal was in the works to compensate St. Paul somehow for lost crab landings, perhaps by requiring compensatory deliveries in future years.

• Maybe the hottest issue at this meeting concerns Gulf of Alaska rockfish. As with crab, rockfish was "rationalized," but only temporarily. The council now faces a universe of choices on how to manage the rockfish harvest after 2011. One option is awarding perhaps 20 percent of the catch rights directly to processors as "protection" for their historic investment in the fishery. This would be an unprecedented step in Alaska fisheries management, and a highly controversial one at that. So we can expect to see plenty of rockfish wrangling at future council meetings.

• Another hot topic is the proposed closure of some waters off Kodiak and Afognak islands to keep boats targeting bottomfish from accidentally catching, or mangling, bairdi Tanner crab. Supporters of the closures point the finger mainly at trawlers for this crab bycatch. Trawlers are saying, hey, we don't want to see vast areas closed without clear scientific justification. We've previously seen some pretty tough lobbying here. Remember those pictures of purported extreme crab bycatch from a few months ago? As with many issues before the council, final action on this one is still a long way off.

• Efforts to invent an excluder device to keep Chinook salmon out of pollock trawl nets apparently are coming along swimmingly. Researcher John Gauvin made a presentation on a "flapper-style" excluder to the council's Scientific and Statistical Committee. The committee wrote: "The concept for a salmon excluder has evolved over a number of years, and results of the most recent test appear to be the most promising to date." The excluder plays on salmon tendencies to allow them to exit the net through an escape hole, while most pollock stay inside. Gauvin said several vessels intend to use the excluder during next winter's pollock fishery.

• The council plans to hold its June 2011 meeting in a very unusual place: Nome! That's a big logistical challenge for the town, as a council meeting can attract hundreds of agency staffers and other people and bed space is limited. Folks in Nome believe they can handle the meeting like the Iditarod, which obviously brings scores of people to the shores of Norton Sound.

• And finally, from the rumor department, here's the very biggest buzz I heard at the council meeting (uh, in the bars) this weekend: Coastal Villages Region Fund and the company it partly owns, American Seafoods, possibly are going to divorce. This could involve part of American's mighty fleet of factory trawlers splitting off into a new company, knowledgeable and only slightly tipsy industry sources told me. Deckboss has not inquired of either Coastal Villages or American about this, so make of it what you will.