American Shipping Company Seals USD 500m in Loans

Tanker owner American Shipping Company ASA has received firm commitments for a USD 500 million refinancing of its secured bank debt from a group of lenders.

The refinancing is structured in two separate facilities; one being a USD 350 million facility with a club of four banks consisting of BNP Paribas, Credit Agricole, SEB and Wells Fargo and the other a USD 150 million facility with CIT Maritime Finance.

On a combined basis, the average weighted tenor is 6 years, with average weighted interest cost of Libor + 320 bps margin and total annual installments of USD 32 million.

“The refinanced debt provides attractive financing terms to AMSC and significantly increases financial flexibility going forward. Reduced interest cost and lower amortization provides AMSC with substantially higher dividend capacity in the future,” said Pål Lothe Magnussen, President and CEO of AMSC.

The debt refinancing is expected to close in Q3 2015 and is subject to customary documentation.

AMSC owns nine handy size product tankers and one handy size shuttle tanker all on long term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

CrewConnect Global 2019

CrewConnect Global is the leading forum for collaboration to advance new industry approaches to seafarer recruitment and training.

read more >

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >