S&P rates OMI convertibles B+

Standard & Poor's said it assigned its B+ senior unsecured rating to OMI Corp.'s proposed $225 million senior convertible debt offering due 2024. At the same time, S&P affirmed its ratings, including the BB corporate credit rating and B+ senior unsecured debt rating, on the company.

Proceeds from the debt offering will be used to repurchase $72.5 million of stock with the balance to be used to reduce borrowings under the company's revolving credit facility.

S&P said the ratings on OMI reflect the company's significant, but carefully managed, exposure to the volatile tanker spot markets, an active new vessel construction and acquisition program and participation in the competitive, volatile, highly fragmented and fixed-capital-intensive bulk ocean shipping industry.

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