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Oslo, 6 July 2015 American Shipping Company ASA (OSE:AMSC), is pleased to announce that it 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, key terms are as follows: Total amount: USD 500 million Average weighted tenor: 6 years Average weighted interest cost: Libor + 320 bps margin Total annual installments: 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. About American Shipping Company ASA: AMSC is a ship owning company with nine modern handy size product tankers and one modern 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. AMSC has a significant contract backlog as well as a profit sharing agreement with OSG which offers visibility with respect to future earnings and potential dividend capacity. The Company has an ambition to pay attractive and growing dividends to its shareholders. American Shipping Company ASA, press release |
