OMI to use revolver, bank financing, cash to fund Suezmax vessels acquisition

By Sara Rosenberg

New York, June 25 - OMI Corp. plans to use existing revolving credit facility capacity, bank financing and operating cash flow to fund its acquisition of two Suezmax vessels from Arcadia Ship Management for about $140 million, according to a company news release.

This latest acquisition announcement comes on the heels of OMI's announcement Wednesday that it would acquire four Suezmax vessels and eight product carriers under construction at Hyundai Mipo Shipyard from Athenian Sea Carriers Ltd. The total to be paid for these assets will be about $585 million cash, including $393 million by August and the remaining $192 million of payments to the shipyard between November and June 2006.

Revolver borrowings are expected to be used to help fund Hyundai Mipo acquisitions as well. The company also sold some common stock for about $129 million for acquisition funding.

The company currently has about $325 million total available under its 2007 and 2010 credit facilities, with the credit lines bearing interest at just under Libor plus 100 basis points.

OMI is a Stamford, Conn., owner and operator of crude oil tankers and product carriers.

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