October 12, 2008
OSG and Euronav secure $500 million credit facility
Despite the credit crunch, Overseas Shipholding Group, Inc. (NYSE: OSG), and Euronav NV (EURONEXT BRUSSELS: EURN) have secured a $500 million senior secured term loan to finance the acquisition of the 442,000 dwt, 2002-built, double hulled ULCC's TI Asia and TI Africa by joint venture companies owned equally by Euronav and OSG and the conversion of the ships into FSO (Floating Storage Offloading) service vessels. (SEE EARLIER STORY).
The credit facility consists of a $180 million term loan to finance the acquisition of the ships and a $320 million term loan to finance the conversion of the ships
The vessels are scheduled to deliver to Maersk Oil Qatar on the Al Shaheen field offshore Qatar and start operation respectively on July and September 2009.
The credit facility is being provided by ING, Fokus Bank, Fortis Bank (Belgium), Sumitomo Mitsui Banking Corporation, BNP Paribas and Nordea, acting as lead arrangers and ING as global coordinator and facility agent, and Danish Ship Finance, Deutsche Schiffsbank, Dexia Bank, Scotia Bank and Helaba Landesbank Hessen-Thuringen acting as co-arrangers.
The facility has an eight-year maturity from the delivery dates of each of the two vessels on site.
Borrowings under the facility bear interest at a rate based on LIBOR.