Overseas Shipholding Group to Split Up Domestic and International Businesses

NYSE-listed Overseas Shipholding Group (OSG) has filed a registration statement on Form 10 with the US Securities and Exchange Commission in connection with the tanker company’s previously announced plan to separate its international and domestic businesses.

OSG expects that any separation would be achieved through a spin-off of OSG International, Inc. in the second half of 2016 to create two standalone publicly traded companies.

“The filing of the Form 10 is an important step in the execution of our plan to create two industry-leading independent public companies,” said Captain Ian T. Blackley, OSG’s president and CEO.

“Separating our international and domestic businesses will allow each company to more effectively pursue their distinct operating priorities and strategies and better enable management of both companies to capitalize on opportunities for long-term growth and profitability. Both businesses will continue to provide safe, reliable, high-quality transportation services to our customers in each sector.”

At June 30, 2016, OSG International owned or operated a fleet of 55 vessels with a combined capacity of approximately 6.5 million deadweight tons and 864,800 cubic meters. The company’s operating fleet comprises one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers. Through joint venture partnerships, the company has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels.

After the spin-off, OSG will consist of the currently existing US Flag business, which operates the 24-vessel fleet consisted of eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the US Maritime Security Program.

The spin-off and timing remains subject to approval of the OSG board of directors and the satisfaction of various other conditions, including the effectiveness of the registration statement on Form 10.

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