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Consistent with our previous announcement, the amended facility provides for an extended maturity as well as changes to certain provisions including financial covenants and amortization schedule. Under the terms of the $550 million revolving credit facility, amounts borrowed will bear interest at LIBOR plus 4%. The facility, which will mature in 2016, will have a cash flow sweep of amounts in excess of $100 million (taking into account outstanding borrowing capacity) for the first two years and quarterly fixed amortization for years three through five. Nordea Bank Finland plc, DnB NOR and HSH Nordbank AG acted as the lead arrangers of the facility. The $200 million payment-in-kind toggle rate Secured Notes will be guaranteed by General Maritime and certain of its subsidiaries, and secured by certain assets of those subsidiaries. The Company used $115 million of the proceeds from the Secured Notes to repay debt on the 2005 credit facility, used $25 million to repay debt on the 2010 credit facility and will use a portion of the proceeds of the Secured Notes for working capital purposes. The Secured Notes will mature in 2018, outside the Company's other scheduled debt maturities. Interest on the Secured Notes will pay-in-kind or in cash at the Company's option. There will be no amortization on the Secured Notes. John P. Tavlarios, President of General Maritime Corporation, commented, "We are pleased to complete this transaction which strengthens our balance sheet and capital structure. Specifically, we refinanced our existing 2005 credit facility under favorable terms and ahead of the $600 million balloon maturity in October 2012. In addition, the Oaktree investment provides capital with no amortization or mandatory cash interest requirements until its maturity in 2018. We appreciate the strong support we continue to receive from both the capital markets and our banking syndicate, underscoring our industry leadership and strong future prospects." The transaction was approved by an Independent Committee of the Company's Board who received financial advice from Jefferies & Company Inc. and Allen & Company LLC. In addition, Kramer Levin Naftalis & Frankel LLP provided legal advice to the Company. 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 31 tankers - seven VLCC, nine Aframax, twelve Suezmax tankers, two Panamax and one Product tanker - with a total carrying capacity of approximately 5.2 million dwt. The Company also has three Product tankers that are chartered-in with options to purchase the vessels. The Company controls tonnage totaling 5.3 million dwt, including the owned fleet and the chartered-in fleet. General Maritime Corp. press release |
General Maritime Corporation Announces Completion of $200 Million Oaktree Investment and an Amendment and Extension of its 2005 Revolving Credit Facility for $550 Million