Overseas Shipholding talks $1.2 billion in term loans at OID of 99-99˝

By Sara Rosenberg

New York, June 13 – Overseas Shipholding Group Inc. is talking its $600 million five-year covenant-light term loan (B1) at OSG Bulk Ships (domestic borrower) and $600 million five-year covenant-light term loan (B1) at OSG International (international borrower) with an original issue discount of 99 to 99˝, according to a market source.

As previously reported, the OSG Bulk Ships term loan is talked at Libor plus 475 basis points with a 1% Libor floor, and the OSG International term loan is talked at Libor plus 525 bps with a 1% Libor floor.

Both term loans have 101 soft call protection for one year.

The company’s $1.35 billion exit financing credit facility also includes a $75 million 4˝-year asset-based revolver at OSG Bulk Ships with pricing that can range from Libor plus 225 bps to 275 bps based on availability and a $75 million 4˝-year cash-flow revolver at OSG International talked at Libor plus 450 bps with a 1% Libor floor.

Jefferies Finance LLC is leading the deal that launched with a bank meeting on Thursday.

Proceeds will be used to help fund the company’s exit from bankruptcy.

Overseas Shipholding, a New York-based tanker company, filed for bankruptcy on Nov. 14, 2012 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 12-20000.

© 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.