International Seaways Receives Proceeds of $110 Million Term Loan
Based on its 50% Ownership in the FSO Joint Ventures
NEW YORK--(BUSINESS WIRE)--
International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one
of the largest tanker companies worldwide providing energy
transportation services for crude oil and petroleum products in
International Flag markets, today announced that its joint ventures with
Euronav NV, which own the FSO Africa and FSO Asia floating storage and
offloading service vessels, have closed on a $220 million credit
facility. Based on INSW’s 50% ownership in the joint ventures, the
Company has received $110 million in proceeds from the drawdown of the
facility, which it expects to use for general corporate purposes,
including to partially fund the previously announced VLCC acquisition.
“With the $110 million term loan, International Seaways has further
enhanced our financial flexibility while maintaining overall balance
sheet strength,” said Lois K. Zabrocky, INSW’s President and CEO. “We
appreciate the ongoing support of our lending bank group in arranging
this attractive and opportunistic financing, highlighting the strong
performance of our FSO joint ventures, the sizable contracted cash flows
they generate, and the significant value of the assets.”
Ms. Zabrocky continued, “We continue to work towards a second quarter
2018 closing for the VLCC acquisition and now have in place the
necessary cash funding requirements.”
The joint venture facility has an interest rate of LIBOR plus 2% and
steps down over the remaining terms of the five-year contracts with
North Oil Company (NOC), the new operator of the Al Shaheen oil field,
off the coast of Qatar, in July 2022 and September 2022, for the FSO
Asia and FSO Africa, respectively.
ING Bank Belgium SA/NV and ABN AMRO Bank N.V. acted as joint lead
arrangers for the credit facility.
About International Seaways, Inc.
International Seaways, Inc. (NYSE:INSW) is one of the largest tanker
companies worldwide providing energy transportation services for crude
oil and petroleum products in International Flag markets. INSW owned and
operated a fleet of 53 vessels as of March 31, 2018, including one ULCC,
nine VLCCs, two Suezmaxes, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and
15 MR tankers. Through joint ventures, it has ownership interests in
four liquefied natural gas carriers and two floating storage and
offloading service vessels. Additionally, the Company has signed a Stock
Purchase and Sale Agreement to acquire six modern VLCCs, subject to
certain financing and other conditions, expected to close during the
second quarter of 2018. INSW has an experienced team committed to the
very best operating practices and the highest levels of customer service
and operational efficiency. International Seaways is headquartered in
New York City, NY. Additional information is available at www.intlseas.com.
Forward-Looking Statements
This release contains forward-looking statements. In addition, the
Company may make or approve certain statements in future filings with
the Securities and Exchange Commission (SEC), in press releases, or in
oral or written presentations by representatives of the Company. All
statements other than statements of historical facts should be
considered forward-looking statements. These matters or statements may
relate to the Company’s plans to issue dividends, its prospects,
including statements regarding vessel acquisitions, trends in the tanker
markets, and possibilities of strategic alliances and investments.
Forward-looking statements are based on the Company’s current plans,
estimates and projections, and are subject to change based on a number
of factors. Investors should carefully consider the risk factors
outlined in more detail in the Annual Report on Form 10-K for 2017 for
the Company, and in similar sections of other filings made by the
Company with the SEC from time to time. The Company assumes no
obligation to update or revise any forward-looking statements.
Forward-looking statements and written and oral forward-looking
statements attributable to the Company or its representatives after the
date of this release are qualified in their entirety by the cautionary
statements contained in this paragraph and in other reports previously
or hereafter filed by the Company with the SEC.
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Investor Relations & Media:
International Seaways, Inc.
David
Siever, 212-578-1635
dsiever@intlseas.com
Source: International Seaways, Inc.