Saga Agnes AS, a subsidiary of Saga Tankers ASA ("SAGA"), has today taken delivery of the VLCC "Songa Agnes". The vessel was acquired, as per the investor presentation presented to the participants of the 21 April 120 mUSD Private Placement, for a net acquisition price of USD 69 million plus value of lubes onboard in the amount of USD 254.000.

 

The vessel acquisition was financed by USD 40 million in debt financing under the Company's loan facility and USD 11 million in cash, whilst USD 18.23 million worth of shares in Saga Tankers ASA will be issued to Songa Shipping Pte Ltd. by way of payment-in-kind. The issuance of shares to Songa Shipping Pte Ltd, in total 8,967,361 shares, will be registered in the Norwegian Company Registrar on 15/16 June. The Company will notify the market when these shares have been validly registered. The total number of outstanding shares in SAGA following this issuance will be 78,888,559.

 

The vessel was originally scheduled to be delivered to the Company on 18 May. Due to the vessel being fully loaded with crude oil on 18 May, a delivery at sea was practically not possible. However, and as per the offering memorandum presented on 21 April 2010, SAGA will have the financial benefit of the timecharter contract for the period 18 May to 14 June. A retroactive cash compensation to reflect the financial change of ownership in benefit of SAGA of USD 605.000 for late delivery will be paid by Songa Shipping Pte Ltd. to SAGA.

 

Saga Unity AS, a subsidiary of SAGA, took delivery of the VLCC "Saga Unity" (previously "Sanko Unity") in Singapore on 2 June 2010. The vessel was acquired at a net acquisition price of USD 67.6 million plus value of bunkers and lubes in the amount of USD 1.8 million.  The vessel acquisition was financed with USD 36.85 million in debt financing, whilst the remaining amount was paid in cash.

 

By this, the Company has completed all of its envisaged vessel acquisitions in connection with the listing of the Company on the Oslo Stock Exchange. The first day of trading on the Oslo Axess-list is scheduled to be 18 June.

 

The Company will launch its website www.sagatankers.no on 15 June. Press-releases, presentations, Corporate Governance Policies and other Company related information will be made easily available for investors, future potential investors and clients.

 

Oslo, 14 June 2010

 

Jon Christian Syvertsen, CEO

Fredrik Platou, CFO

management@sagatankers.no

+47 23 11 82 70

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)