Overseas Shipholding to start general syndication soon on $1.5 billion facility

By Sara Rosenberg

New York, Feb. 15 - Overseas Shipholding Group Inc. plans to start general syndication shortly on a new up to $1.5 billion seven-year unsecured credit facility, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Citigroup Global Markets Ltd., DnB NOR Bank, HSBC Securities Inc. and Nordea Bank Finland plc acted as lead arrangers on the deal. Citigroup Global Markets and Nordea acted as bookrunners and DnB NOR Bank is administrative agent.

After five years, the size of the facility will be reduced by $150 million and, after six years, the size will be further reduced by another $150 million.

Proceeds will be used to repay existing debt and for working capital and general corporate purposes.

The company may draw on the facility after March 26. The credit agreement was entered into on Feb. 9.

Overseas Shipholding is a New York-based independent bulk shipping company.

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