Overseas Shipholding Group – Announces closing of $ 325 million loan to refinance debt
TAMPA, Florida, October 4, 2021– (BUSINESS WIRE) – Overseas Shipholding Group, Inc. (NYSE: OSG) (“OSG”), a provider of energy transportation services for crude oil and petroleum products in US flag markets, has announced today that it has closed a seven-one $ 325 million term credit facility with Stonebriar Commercial Finance (the “Term Loan Refinance”). The proceeds were used to refinance and replace its existing term loan facility with The Prudential Insurance Company of America, as administrative agent, and certain other lenders, and an existing term loan with Wintrust Commercial Finance, as well as the partial refinancing of a term loan with Banc of America Leasing & Capital, LLC. The remaining proceeds, after transaction costs, will be used for general working capital purposes.
The performance of the borrowers’ obligations under the refinancing of the term loan is guaranteed by OSG and certain other subsidiaries, and the loan contains customary representations and warranties as well as positive and negative covenants.
“We are very pleased to have completed this major refinancing which extends our maturity profile and provides a significant increase in the liquidity position of the company,” said Dick Trueblood, vice president and chief financial officer of the company. “OSG now has no scheduled debt maturities before September 2024. We would like to thank our existing lender Stonebriar who finalized this transaction and became our largest financial partner. “
Sam Norton, President and CEO of OSG, commenting on the new loan facility, said: “The series of transactions concluded this week respond to several key elements taken into account during the strategic review conducted by the Company and its board of directors. The loan agreements were consolidated as part of the new refinancing of the term loan. Coordinated changes to the remaining legacy debt agreements will bring the covenants in line with the terms of the new facility. Until the end of 2022, available liquidity will be the primary measure of compliance in all debt agreements. Free cash flow has been improved, with cash balances at the end of September amounting to $ 85 million. In addition, the liquidity required for debt service in 2022 will be reduced by approximately $ 10 million compared to our requirements. to OSG a solid platform to realize the full long-term potential of its unique and valuable operating franchise. “
Mr. Norton added: “Energy markets continue to provide evidence of strengthening demand and improving fundamentals. In line with these developments, OSG’s financial results have shown steady incremental progress as 2021 progresses, including into the third quarter which has just ended. With two tankers having been activated in recent weeks and discussions with customers indicating a likely increase in seasonal demand over the coming winter months, we believe that the recovery in our markets that we anticipate will become more evident as we move forward. as we move into the fourth quarter and the new year. “
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company that provides energy transportation services for crude oil and petroleum products in the US flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s fleet of 22 US-flagged vessels consists of three tankers operating in Alaska, two conventional ATBs, two lightening ATBs, three shuttle tankers, ten MR tankers and two non-Jones Act MR tankers. who participate in the US maritime security program. OSG also currently owns and operates a Marshall Islands-flagged MR tanker that trades internationally.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused shipping companies and is headquartered in Tampa, Florida. More information is available at www.osg.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact should be regarded as forward-looking statements. Words such as “may”, “will”, “should”, “should”, “could”, “will appear”, “believe”, “intend”, “expect”, “estimate”, “Targeted”, “plans”, “anticipates”, “objective” and similar expressions are intended to identify forward-looking statements but should not be considered as the only means by which such statements may be made. These forward-looking statements represent the Company’s reasonable expectations with respect to future events or circumstances based on various factors and are subject to various risks, uncertainties and assumptions regarding operations, financial results, financial condition, activities, the prospects, the growth strategy of the Company. and liquidity. Accordingly, there are or will be significant factors, many of which are beyond the control of the Company, which could cause the Company’s actual results or results, or the timing of certain events, to differ materially from the expectations expressed. or implied in these statements. , including due to the uncertainty associated with the ability to identify, assess and complete any transaction or strategic alternative, the impact of the announcement of the Special Transaction Committee’s review of strategic alternatives, as well as any transaction or strategic alternative that could be pursued, concerning the activities of the Company, including its financial and operational results and its employees. Forward-looking statements should not be relied on unduly and, when reviewing forward-looking statements, consideration should be given to factors, including, but not limited to, the factors discussed in the Company’s annual report. on Form 10-K, filed with the SEC on April 1, 2021, and the factors discussed in the company’s quarterly report on Form 10-Q, filed with the SEC on May 7, 2021. Investors should carefully consider these factors risk factors and additional risk factors described in other reports hereinafter filed by the Company with the SEC under the heading “Risk Factors”. The Company assumes no obligation to update or revise forward-looking statements, except as required by law. The forward-looking statements contained in this press release and the written and oral forward-looking statements attributable to the Company or its representatives after the date of this press release are qualified in their entirety by the cautionary statement contained in this paragraph and in other reports below filed by the Company with the SEC.
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Investor Relations and Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.