OSG secures $49.1 million loan for Jones Act ATB project

Written by Marine Log Staff
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Overseas Shipholding Group, Inc. (NYSE: OSG) reports that it has closed on a $49,150,000 loan for a term of seven years. OSG’s subsidiaries, OSG 205 LLC and OSG Courageous II LLC, obtained the loan to finance one new 204,000 barrel U.S. flag oil and chemical ATB barge, the OSG 205, and to refinance the tug to which the barge is being paired, the OSG Courageous.

The barge is being built by the Greenbriar Marine shipyard, Portland, Ore., and is set to be delivered in the next few weeks. As part of the financing, the lender received a collateral assignment of the vessel construction contract for the barge and, on delivery of the barge, the lender will hold a perfected first priority security interest and preferred ship mortgage. The lender also holds a perfected first priority security interest and preferred ship mortgage against the tug. The loan is guaranteed by OSG.

Dick Trueblood, OSG’s Vice President and Chief Financial Officer stated, “We are very pleased to have completed the financing of the OSG 205 and the tug OSG Courageous, and particularly for the incredibly smooth and efficient execution of the transaction during a continued period of market volatility.”

Sam Norton, President and CEO of OSG commented, “The transaction marks an important milestone in completing the construction and delivery of the second of two barges built for OSG at the Greenbriar Marine shipyard. All complex projects require the contribution of multiple partners to achieve success, and we are pleased to have teamed up with our financing partner and Greenbriar in providing the necessary resources to bring this project to fruition. With delivery of the barge imminent, we look forward to commencing service under a one year time charter early next month and to continuing our focus on providing safe, reliable and environmentally responsible transportation services to our customers.”

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