CIT Maritime Finance has entered into a $150 million commitment with American Shipping Company as part of a total $500 million refinancing commitment that included $350 million provided by BNP Paribas, Credit Agricole, SEB and Wells Fargo.
The terms of the commitments are for an average weighted tenor of six years with an average weighted interest cost of Libor + 320 bps margin and total annual installments of $32 million.
“The refinanced debt provides attractive financing terms to AMSC and significantly increases financial flexibility going forward,” said Pål Lothe Magnussen, president and CEO of AMSC. Reduced interest cost and lower amortization provides AMSC with substantially higher dividend capacity in the future.”
The debt refinancing is expected to close in Q3/15 and is subject to customary documentation.
AMSC is a ship owning company with nine modern handy size product tankers and one modern handy size shuttle tanker all on long term bareboat charter with Overseas Shipholding Group.
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