Overseas Shipholding gets commitments for $935 million in exit loans

By Caroline Salls

Pittsburgh, April 17 - Overseas Shipholding Group, Inc. requested court approval to enter into a commitment letter with Goldman Sachs Bank USA for $935 million in exit financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The exit financing will consist of four loan facilities secured by different portions of the business operations of the reorganized Overseas debtors.

Specifically, Goldman Sachs will arrange a $400 million senior secured exit term loan with OSG International Inc. as borrower and a $50 million senior secured revolving credit facility with OSG International as borrower, as well as a $75 million senior secured asset-based revolving credit facility with OSG Bulk Ships, Inc. as borrower and a $410 million senior secured exit term loan facility with OGS Bulk Ships as borrower.

The OSG International term loan will mature on the six-year anniversary of closing, subject to a springing maturity date if $50 million or more of the company's 8 1/8% unsecured senior notes due 2018 are not satisfied or discharged or otherwise remain outstanding 91 days before the stated maturity date.

Interest on the OSG International term loan will be either Eurodollar rate plus 450 basis points with a 1% floor or Base rate plus 350 bps, at the borrower's option.

The five-year OSG International revolver will bear interest at either Eurodollar plus 450 bps or Base rate plus 350 bps.

The ABL facility will mature in five years from closing, subject to the same springing maturity date terms as the OSG International term loan and will bear interest at either Eurodollar plus 225 bps or Base rate plus 125 bps.

The OSG Bulk Ships term loan will mature in six years, subject to the springing maturity date conditions, and will bear interest at either Eurodollar plus 400 bps with a 1% floor or Base rate plus 300 bps with a 2% floor.

Goldman Sachs' commitments will terminate if the exit facility does not close by 11:59 p.m. ET on Aug. 31.

A hearing is scheduled for May 7.

Overseas Shipholding, a New York-based tanker company, filed for bankruptcy on Nov. 14, 2012. Its Chapter 11 case number is 12-20000.

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