American Shipping Company closes $305 Mn refinancing for nine ships
- Business & Finance
Despite the challenging financial environment caused by COVID-19, Norway-based shipowner American Shipping Company ASA (AMSC) has closed a $305 million refinancing of senior secured vessel debt covering nine AMSC vessels.
As explained, the refinancing is structured in two separate facilities with new and existing lenders.
The first is a $160 million facility secured by five vessels with a club of three banks consisting of BNP Paribas, SEB and National Australia Bank. The second is a $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.
“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,” Pål Lothe Magnussen, AMSC CEO, commented.
“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”.
Established in 2005 and listed on the Oslo Stock Exchange, AMSC owns nine Handysize product tankers and one Handysize shuttle tanker on long term bareboat charter with Overseas Shipholding Group (OSG).