April 23, 2007
OSG completes Heidmar Lightering acquisition
Overseas Shipholding Group, Inc. (NYSE: OSG), reports that its acquisition of the Heidmar lightering business from Heidmar, Inc., a subsidiary of Morgan Stanley Capital Group, Inc., was completed on April 20, 2007
The acquired lightering operation and staff of eight personnel based in Houston, Texas, includes a fleet of four international flag Aframax tankers and two U.S. flag workboats that provide crude oil lightering services to refiners, oil companies and trading companies, primarily in the U.S. Gulf. The business manages a portfolio of one-to-three year fixed rate cargo contracts. Under the agreement, OSG acquired the lightering fleet, which is time chartered-in, including a 50 percent residual interest in two specialized lightering Aframax tankers, the Heidmar Sabine and the Heidmar Brazos.
The acquisition, an all cash transaction for approximately $41 million, was made pursuant to an agreement in principal between the companies announced on February 26, 2007. The Heidmar Lightering operation will be renamed "OSG Lightering" in connection with the transaction.