OSG Secures Loan to Finance Jones Act ATB Newbuild
US-based tanker company Overseas Shipholding Group (OSG) has closed on a USD 33,150,000 loan to finance its new oil and chemical articulated tug barge (ATB).
The 204,000 barrel US Flag ATB barge and its identical sister vessel are being built by Greenbriar Marine’s Gunderson Marine shipyard in Oregon and are set to be delivered in the second quarter of 2020.
The loan, which has a term of five years, was led by Wintrust Commercial Finance (WCF), a division of Wintrust Asset Finance.
As part of the financing, WCF and the other syndicate lenders received a collateral assignment of the vessel construction contract, and upon delivery of the barge to OSG’s subsidiary OSG 204 LLC, the lenders will hold a perfected first priority security interest and preferred ship mortgage against the vessel. The loan is also guaranteed by OSG.
“We are more than pleased to have been able to close on this, our latest financing package, which supports our continuing investment in new assets set to join our fleet later this year,” Dick Trueblood, OSG’s Vice President and Chief Financial Officer, commented.
“Our investment in new barges under construction is an important piece of our continuing commitment to sustaining OSG’s … position in the US flag market for marine transportation of crude oil and its refined products,” Sam Norton, President and CEO of OSG, said.
“The capital provided by WCF and its partners adds support to this initiative, expanding OSG’s available liquidity and positioning the company well to continue its progress towards sustained profitability.”
OSG’s 22 vessel US Flag fleet consists of three crude oil tankers, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers. OSG also currently owns and operates two Marshall Islands-flagged MR tankers which trade internationally.