American Shipping Company ASA: Successful closing of bank debt refinancing
Lysaker, 9 April 2020 – Reference is made to the previous announcement regarding the refinancing of senior secured vessel debt for nine out of ten ships owned by American Shipping Company ASA (AMSC). Despite the current challenging financial environment, AMSC has today successfully closed a USD 305 million refinancing with new and existing lenders.
AMSC CEO, Pål Lothe Magnussen said in a comment, “We are pleased to announce closing and funding of the previously announced secured debt refinancing. The new facilities, with attractive terms, provide further support for AMSC’s strong debt service coverage and dividend capacity. The combination of long term “come hell and high water” bareboat charter contracts with new five year debt facilities, reaffirms the stable cash flow profile of our business”.
The refinancing is structured in two separate facilities; one being a USD 160 million facility secured by five vessels with a club of three banks consisting of BNP Paribas, SEB and National Australia Bank and the other, a USD 145 million facility secured by four vessels, with a syndicate of four lenders consisting of Prudential Private Capital, Siemens Financial Services, Wintrust Asset Finance and Atlantic Union Equipment Finance.
The two facilities are summarized below:
- 5 year loan secured by 5 vessels
- Amount: USD160 million (USD 90 million term loan and USD 70 million revolving credit)
- Pricing: LIBOR + 270bps
- Annual amortization: USD 13.3 million
- 5 year loan secured by 4 vessels
- Amount USD 145 million (reduced from previously announced USD 165 million)
- Pricing LIBOR + 325bps
- Annual amortization: USD 8.5 million (reduced from previously announced USD 9.7 million)
About American Shipping Company ASA:
Established in 2005 and listed on the Oslo Stock Exchange, AMSC is a ship owning company with nine modern handy size product tankers and one modern handy size shuttle tanker on long term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade. AMSC has a significant contract backlog as well as a profit sharing agreement with OSG which offers visibility with respect to future cash flows and potential dividend capacity. The Company has an ambition to pay attractive dividends to its shareholders. Further information is available at www.americanshippingco.com.
Pål Magnussen, Chief Executive Officer +47 24 13 00 04
Morten Bakke, Chief Financial Officer +47 24 13 00 87
Leigh Jaros, Financial Controller +1 484 880 3741
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.