May 15, 2006
Oglebay Norton sells six lakers
Oglebay Norton Company (OTC: OGBY.PK), Cleveland, Ohio, says it has signed a definitive purchase agreement to sell six of its nine marine vessels.
The agreement includes long-term contracts for transporting limestone from the company's Michigan quarries.
Closing of the sale is subject to regulatory clearance. The terms of the agreement have not been disclosed.
In addition, the company stated that it intends to sell its remaining three vessels and is in negotiations with a potential buyer.
Oglebay Norton's fleet ranges in age from the 1943-built, 730 ft steam powered Middleton to the 1981 built 1,000 ft diesel powered Columbia Star.
Sale of the fleet will mark the end of a 150 year history for the Oglebay Norton fleet, which for long operated as Columbia Steamship.
Michael Lundin, President and CEO, Oglebay Norton Company stated, "We continue to execute our strategy of expanding on our current markets and developing new markets for our limestone and limestone fillers businesses, while maximizing the profitability of our sand and lime businesses. The sale of the vessels will enable us to pay down our debt which will further strengthen our balance sheet. Upon the closing of the sale, we will be well positioned to refinance our existing debt."