General Maritime Corporation Announces Amendments to Credit Facilities

NEW YORK, Dec. 22, 2010 /PRNewswire via COMTEX/

General Maritime Corporation (NYSE: GMR) announced today that the Company has entered into agreements to amend its $372 million senior secured credit facility and $750 million revolving credit facility. Nordea Bank and DnB NOR Bank ASA acted as the lead arrangers of the facilities.

Under the terms of the amended credit facilities, the permitted Net Debt to EBITDA ratio will increase to 8.75 times from the previous requirement of 6.0 times. This new maintenance covenant ratio will be in effect for the 2010 fourth quarter through the 2011 third quarter. For the fourth quarter 2011 through the life of each facility, the maintenance covenant ratio will revert to 5.5 times.

Jeffrey D. Pribor, Chief Financial Officer of General Maritime Corporation, stated, "With these amendments, General Maritime has once again taken proactive steps to significantly enhance its financial flexibility. We appreciate the ongoing support of world-class banks, highlighting our industry leadership. Going forward, we will maintain our focus on pursuing opportunities to further strengthen our balance sheet. With a flexible deployment strategy and a diverse service offering, we have positioned the Company to both achieve a level of stability in our results and take advantage of future tanker rate increases."

The applicable margin and permitted dividend are based on a pricing grid. While the Net Debt to EBITDA ratio is greater than 6.0 times, the facilities will bear an interest rate of LIBOR plus 350 bps; while it is 6.0 times or less, the facilities will bear an interest rate of LIBOR plus 300 bps. Similarly, while the Net Debt to EBITDA ratio is greater than 6.0 times, the Company will be permitted to pay a dividend of up to $0.01 per share per quarter; while it is 6.0 times or less, the Company will be permitted to pay up to $30 million per year in total dividends.

About General Maritime Corporation
General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 37 tankers - seven VLCC, twelve Aframax, twelve Suezmax tankers, two Panamax and four Product tankers - with a total carrying capacity of approximately 5.6 million dwt.

General Maritime Corp. press release