Philly Tankers Step Closer to Its First Vessels

Philly Tankers Step Closer to Its First Vessels

Philly Tankers has secured all necessary documentation including approval by the general meeting of American Shipping Company, to close the transaction for the purchase of two product tankers from Aker Philadelphia Shipyard ASA (AKPS) with deliveries in 2016 and 2017, the shipyard said in a filling to Oslo stock exchange.

The announcement was made first in June with respect to the establishment of Philly Tankers, a pure play Jones Act shipping company.

AKPS and Philly Tankers, through their subsidiaries, have entered into firm contracts for two eco-design product tanker newbuilds and options for two additional vessels of the same type, as more particularly described in the June 10th announcement.

The two LNG-ready 50,000 dwt tankers worth USD $250 million will feature the Hyundai Mipo Dockyard design.

American Shipping Company ASA has invested USD $25 million and AKPS will invest USD 58.5 million for 20 and 54 percent stake each in the new venture. The remaining 26 pct will be held by Apollo Global Management and other U.S. institutional investors.

Press Release, July 10th, 2014