APSI Commitment for $65m Expires

The commitment letter between Aker Philadelphia Shipyard, Inc. (APSI) and a group of private lenders that was announced on 14 November 2013 has expired.

APSI Commitment for $65m Expires

This commitment had been for a secured term loan of $65 million with a variable interest rate of LIBOR plus 7.00%. This loan will not be closed.

The previously announced commitments for a secured term loan of up to $60 million from PIDC Regional Center that matures in 2019 and carries a fixed 2.75% interest rate, and a secured construction loan facility of up to $120 million from Caterpillar Financial Services for the four product tankers under contract with Crowley (i.e., Hulls 021-024), each remain effective. Definitive documentation for these financings is expected to be completed during Q1 2014.

In addition, the previously announced $60 million private placement of shares of AKPS is expected to be approved by an Extraordinary General Meeting next month. It is expected that these debt financings and the private placement will fulfill all of APSI’s capital needs for its current backlog as well as its future investment of approximately $115 million in Hulls 021-024 pursuant to the APSI- Crowley joint venture.

APSI is currently constructing two 115,000 dwt crude oil carriers for SeaRiver Maritime, Inc., ExxonMobil Corporation’s U.S. marine affiliate. Both of these crude oil tankers are scheduled for delivery in 2014. APSI also has contracts for the construction of four product tankers with Crowley with deliveries in 2015 and 2016 as part of a joint venture.

In addition, APSI has contracts with Matson Navigation Company, Inc. for the construction of two 3,600 teu containerships with delivery in Q3 and Q4 2018.

 

[mappress]
Press Release, January 20, 2014

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