NYSE-listed tanker owner and operator Overseas Shipholding Group (OSG) has completed the previously announced separation of the company into two independent, publicly traded companies – Overseas Shipholding Group and International Seaways (INSW).
Earlier this year, OSG filed a registration statement on Form 10 with the US Securities and Exchange Commission in connection with the firm’s plan to separate its international and domestic businesses.
“Today marks the start of an exciting new chapter for OSG. We are now a more sharply focused company with a leading and diversified position in the Jones Act market,” Sam Norton, OSG’s SVP & President and CEO of the U.S. Flag Strategic Business Unit, said, adding that the move will allow the company to leverage its operating franchise and strong balance sheet to address growth opportunities and drive shareholder value.
On November 30, 2016, 100 percent of the shares of International Seaways were distributed to OSG shareholders and warrant holders. OSG shareholders received 0.3333 shares of International Seaways common stock for every one share of OSG common stock held on November 18, 2016, the record date for the spin-off.
For each OSG warrant held on the record date, OSG warrant holders received 0.3333 shares of INSW common stock for every one share of OSG common stock they would have received if they exercised those warrants immediately prior to the distribution date. OSG shareholders and warrant holders received cash in lieu of any fractional shares, the company said.
International Seaways common stock will begin “regular way” trading on the NYSE under the symbol “INSW” on December 1, 2016, according to OSG.
OSG’s fleet consists of 24 vessels – eight Articulated Tug Barges (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.