New York, June 15 – International Seaways, Inc. placed $30 million of 10¾% subordinated step-up notes due 2023 to accounts managed by BlackRock, Inc. as part of the financing for its acquisition of six VLCC tankers from Euronav NV, according to an 8-K filing with the Securities and Exchange Commission.
The total price for the acquisition was $434 million, including assumed debt. International Seaways paid $120 million in cash.
To raise funds, the company sold six vessels, made up of one VLCC tanker, one Aframax tanker and four MR tankers, entered into a sale-leaseback transactions for two Aframax tankers, refinanced two of its joint ventures, sold $25 million of 8.5% notes in a public offering, raised $30 million from the sale of $30 million of 10.75% subordinated step-up notes due 2023 to accounts managed by BlackRock, Inc., entered into a credit agreement secured by the Seaways Raffles, a VLCC tanker, with ABN Amro Capital USA LLC as lead arranger and facility agent, amended its term loan B with Jefferies Finance LLC as administrative agent, assumed debt under the Sinosure facility and will sell an additional ship, the Seaways Laura Lynn, to Euronav in late June for $32.5 million.
The new subordinated notes carry interest at 10¾% until Dec. 15, 2020 when they step up to 13% unless the term loan B ceases to be outstanding, in which case the step up will be the later of June 15, 2020 and the date the term loan B is refinance.
The notes mature in 2023 but if the term loan B is refinanced then the maturity will be 2022.
International Seaways is a New York City-based oil and petroleum shipping company.
| Issuer: | International Seaways, Inc.
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| Issue: | Step-up subordinated notes
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| Amount: | $30 million
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| Maturity: | June 15, 2023, but June 15, 2022 if term loan B is refinanced
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| Coupon: | 10¾%, stepping up to 13% on Dec. 15, 2020 or the earlier of June 15, 2020 and the date the term loan B is refinanced; payable quarterly
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| Call: | Make-whole call before June 15, 2020, then at par
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| Distribution: | Private placement
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| Investor: | Funds and accounts managed by BlackRock, Inc.
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| Settlement date: | June 13
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