By Lisa Kerner
Charlotte, N.C., March 30 - General Maritime Corp. subsidiaries General Maritime Subsidiary Corp. and General Maritime Subsidiary II Corp. will issue $200 million of payment-in-kind toggle floating-rate secured notes due 2018 to an affiliate of Oaktree Capital Management, LP.
The interest rate will be Libor plus 600 basis points to 900 bps, with a 3% Libor floor, according to a 10-K filing with the Securities and Exchange Commission.
The company expects to use $175 million of the proceeds for repaying debt owed on its 2005 revolving credit facility and $25 million for repaying debt on its 2010 credit facility.
The notes, along with the bank loan refinancing, will allow General Maritime to increase liquidity and operational flexibility while lowering its near-term debt commitments, a company news release said.
In addition, the secured notes provide General Maritime with capital that has no amortization or mandatory cash interest requirements until 2018.
General Maritime is a New York-based provider of international seaborne crude oil transportation services.
| Issuers: | General Maritime Subsidiary Corp. and General Maritime Subsidiary II Corp.
|
| Issue: | Payment-in-kind toggle floating-rate secured notes
|
| Amount: | $200 million
|
| Maturity: | 2018
|
| Coupon: | Libor plus 600 bps to 900 bps
|
| Pricing date: | March 29
|
| Distribution: | Private placement
|
| Purchaser: | Oaktree Capital Management, LP
|
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