Overseas Shipholding secures $500 million eight-year loan

By Susanna Moon

Chicago, Oct. 14 - Overseas Shipholding Group, Inc. said it obtained a $500 million eight-year senior secured term loan.

Borrowing under this facility bear interest at a rate based on Libor.

Proceeds will be used to finance the acquisition of TI Asia and TI Africa by joint venture companies owned with Euronav and the conversion of the ships into floating storage offloading service vessels.

The credit facility is provided by ING, Fokus Bank, Fortis Bank (Belgium), Sumitomo Mitsui Banking Corp., BNP Paribas and Nordea, lead arrangers. ING is the global coordinator and facility agent, and Danish Ship Finance, Deutsche Schiffsbank, Dexia Bank, Scotia Bank and Helaba Landesbank Hessen-Thuringen are co-arrangers.

The facility has an eight-year maturity from the delivery dates of each of the two vessels onsite.

The vessels are scheduled to deliver to Maersk Oil Qatar on the Al Shaheen field offshore Qatar and start operation, respectively, on July and September 2009.

Overseas Shipholding is a New York-based tanker company. Maritrans is a Tampa, Fla.-based builder and operator of petroleum transport vessels.

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