Aker Philadelphia Shipyard, Inc. (APSI), and Crowley Maritime Corporation have completed definitive documentation and satisfied the closing conditions for the joint venture related to the operation and chartering of at least four product tankers.
The transaction was originally announced on August 9, 2013. The agreements include binding shipbuilding contracts for the first four product tankers, which were signed on August 9, 2013, and options to build additional product tankers. APSI has also signed a commitment letter with PIDC Regional Center, a partnership between CanAm Enterprises and PIDC, for a secured term loan of up to $60 million at a fixed interest rate of 2.75%.
This loan is expected to be fully funded by Q1 2015 with a five-year maturity occurring in 2019. This loan will be made through the Welcome Fund loan program, a source of low-cost capital generally available to commercial, retail, industrial or non-profit firms that create significant job growth and are located in or planning to locate to the City of Philadelphia.
APSI is also in the process of finalizing a commitment for an additional secured loan of up to $65 million. It is expected that the two secured loans, once closed, will fulfill all of APSI’s financing needs for its current backlog, which extends to Q4 2018, including the effect of yesterday’s announced Matson containership project. APSI has also signed a commitment letter with Caterpillar Financial Services for $120 million of construction financing for the first four product tankers with Crowley.
The company is currently constructing two 115,000 dwt crude oil carriers for SeaRiver Maritime, Inc., ExxonMobil Corporation’s U.S. marine affiliate. Both of these crude oil tankers are scheduled for delivery in 2014. Pursuant to the above joint venture, APSI also has contracts for the construction of four product tankers with Crowley with deliveries in 2015 and 2016.
In addition, APSI has contracts with Matson Navigation Company, Inc. for the construction of two 3,600 teu containerships with delivery in Q3 and Q4 2018.
Press Release, November 8, 2013