International Seaways Announces Closing of New $500 Million Term Loan and $50 Million Revolving Credit Facility
June 22 2017 - 4:15PM
Business Wire
Successful Refinancing Significantly Extends
Maturities, Provides Additional Borrowing Capacity and Enhances
Financial Flexibility for Fleet Growth
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 it has closed on a
new $500 million Term Loan and $50 million Revolving Credit
Facility. Proceeds from the Term Loan will be used to refinance the
$458 million outstanding balance of the Company's existing Term
Loan, and for general corporate purposes, including fleet renewal
and growth. The revolver is currently undrawn. The Term Loan, which
contains an accordion feature whereby the loan may be increased up
to an additional $50 million subject to certain conditions, will
carry an interest rate of LIBOR plus 5.5%. The Term Loan has a
final maturity date of June 22, 2022, while the Revolving Credit
Facility has a final maturity date of December 22, 2021.
“We are pleased to have successfully completed this refinancing
under attractive terms, enabling International Seaways to
significantly extend the Company’s debt maturities, increase its
borrowing capacity and further enhance its financial flexibility,”
said Lois K. Zabrocky, International Seaways’ president and CEO.
“With approximately $200 million of total liquidity, we are in a
strong position to capitalize on attractive asset values, which are
at a low point in the cycle, to grow our fleet and earnings power.
We appreciate the strong support we have received from debt
investors, highlighting International Seaways’ sizeable contracted
cash flows, low breakeven levels, and spot market upside to both
the product and crude tanker sectors.”
Jefferies Finance LLC and JP Morgan Chase Bank, N.A. served as
joint lead arrangers, and UBS Securities LLC served as joint
bookrunner for the term loan. DNB Markets Inc., Fearnley Securities
AS, Pareto Securities Inc. and Skandinaviska Enskilda Banken AB
(Publ) acted as co-managers for the term loan.
Skandinaviska Enskilda Banken AB (Publ) provided the $50
million Revolving 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.
International Seaways owns and operates a fleet of 55 vessels,
including one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12
Panamaxes/LR1s and 20 MR tankers. Through joint ventures, it has
ownership interests in four liquefied natural gas carriers and two
floating storage and offloading service vessels. International
Seaways 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 trends in
the tanker markets, possibilities of strategic alliances,
investments and consolidation, and share repurchases.
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 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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version on businesswire.com: http://www.businesswire.com/news/home/20170622006139/en/
Investor Relations & Media:International Seaways,
Inc.David Siever, 212-578-1635dsiever@intlseas.com
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