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.