Norstar Takes Facility to Buy Two LR1 Tankers
Singapore-headquartered tanker operator Norstar Shipping Ltd. has secured a USD 32 million senior secured credit facility from New York-based CIT Maritime Finance, a subsidiary of CIT Group Inc., to acquire two long range (LR1) product tankers.
Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT, and the terms of the transaction were not disclosed.
“Evolving refinery dynamics favor product tankers, as U.S., Middle Eastern and Indian refinery capacity has increased, and European refinery capacity, burdened by higher costs, continues to decline,” said Chris Bonehill, Principal, Norstar Shipping Group.
“Thanks to their deep knowledge of the maritime sector, CIT understood the impact of these trends and quickly arranged a flexible financial solution that allowed us to seize the opportunities we saw in the market. We look forward to working with CIT again.”
Following the purchase of the two LR1 tankers, Norstar will operate a fleet of 21 of product and chemical tankers
Svein Engh, Group Head and Managing Director, CIT Maritime Finance, said: “Norstar Shipping is an experienced technical and commercial manager, that is well connected within the maritime industry and has strong existing relationships with cargo providers and charterers. We are pleased to establish a relationship with Norstar and are glad we were able to bring our maritime finance expertise to bear to help them build their tanker fleet.”