Overseas Shipholding uses bareboat transaction for debt repayment

Chicago, Oct. 23 – Overseas Shipholding Group, Inc. used a recent signing of new bareboat charter agreements to repay certain deferred payment obligations but is looking ahead to more debt reduction opportunities, according to a press release.

The company entered into the new agreement for seven vessels that are now all indirectly owned by a private fund managed by Maritime Partners, LLC.

The company repaid all of its deferred payment obligations, reducing its interest expense going forward by nearly $1.7 million.

“We remain optimistic that anticipated near term strength in our core businesses will continue to produce cashflows in excess of scheduled debt service and capital expenditures, providing the flexibility to take advantage of future business and debt reduction opportunities,” president and chief executive officer of Overseas Shipholding Group Sam Norton said.

As of June 30, the company had $412.22 million of long-term debt including term loans and $390 million of notes, according to the company’s most recently filed 10-Q with the Securities and Exchange Commission.

Tampa, Fla.-based Overseas Shipholding provides energy transportation services for crude oil and petroleum products.

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