Moody’s rates Overseas Shipholding loans B1, Ba2

Moody's Investors Service said it assigned Overseas Shipholding Group, Inc. a B2 corporate family rating, B2-PD probability of default rating, a first-lien senior secured facility rating of B1, 36-LGD3, first-lien super priority senior secured facility rating of Ba2, 1-LGD1 and a speculative grade liquidity of SGL-3.

The outlook is stable.

The ratings are being assigned in anticipation of the completion of Overseas Shipholding’s Chapter 11 restructuring following the plan confirmation hearing scheduled for July 18.

The company has arranged two separate credit facilities on which its intermediate holding company subsidiaries, OSG Bulk Ships, Inc. and OSG International, Inc. are the respective primary obligors. These facilities will have guarantees from certain respective operating subsidiaries and from Overseas Shipholding but not from each other or from the other's subsidiaries.

Moody’s said it bases its ratings analysis on Overseas Shipholding’s consolidated financial statements and projected performance given the parent guarantee. The closing and funding of these credit facilities is predicated on a number of conditions including that there is a final and non-appealable order confirming Overseas Shipholding’s plan of reorganization.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.