CIT Serves as Sole Lead Arranger in $150 Million Financing to American Shipping Company ASA
December 01 2015 - 8:30AM
Business Wire
Facility Supports Refinancing of Jones Act
Product and Shuttle Tankers
CIT Group Inc. (NYSE:CIT), cit.com, a global leader in
transportation finance, today announced that CIT Maritime Finance
served as Sole Lead Arranger and Administrative Agent in a $150
million senior secured credit facility to American Shipping Company
ASA (AMSC). The facility will be used to refinance Overseas
Martinez and Overseas Tampa — two Jones Act tankers that are
currently on long-term bareboat contracts to Overseas Shipholding
Group. Financing was provided by CIT Bank, N.A., the principal bank
subsidiary of CIT. Terms of the transaction were not disclosed.
“We’re pleased with CIT’s ability to put this financing in place
for these two Jones Act vessels,” said Pål Lothe Magnussen,
President and CEO, AMSC. “CIT’s understanding of the Jones Act
industry and the team’s deep experience and expertise in the
maritime sector is what attracted us to the lender. We look forward
to building on this relationship.”
Omer Donnerstein, Director, CIT Maritime Finance, said, “This is
a great opportunity to commence a relationship with AMSC while
lending against strong assets with excellent contract coverage. The
company is a best-in-class tanker owner with an experienced and
respected executive team. We’re pleased to put our knowledge to
work for AMSC and structure an attractive deal.”
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About American Shipping Company ASA
Established in 2005 and listed on the OSE, AMSC is a ship-owning
company with ten modern handy size product tankers on long-term
bareboat charter with Overseas Shipholding Group (OSG). OSG
charters the vessels out on time charters to major oil companies in
the U.S. coastwise Jones Act trade. AMSC has a significant contract
backlog, as well as a profit sharing agreement with OSG, which
offers visibility with respect to future earnings and potential
dividend capacity. The Company has an ambition to pay attractive
and growing dividends to its shareholders and has guided roughly
15% year-over-year dividend growth from 2015 to 2016.
americanshippingco.com
About CIT Maritime Finance
CIT Maritime Finance offers senior secured loans,
sale-leasebacks and bareboat charters to owners and operators of
oceangoing cargo vessels, including tankers, bulkers, container
ships, car carriers, and offshore vessels and drilling rigs.
cit.com/maritime
About CIT
Founded in 1908, CIT (NYSE:CIT) is a financial holding company
with more than $65 billion in assets. Its principal bank
subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has
more than $30 billion of deposits and more than $40 billion of
assets. It provides financing, leasing and advisory services
principally to middle market companies across more than 30
industries primarily in North America, and equipment financing
and leasing solutions to the transportation sector. It also offers
products and services to consumers through its Internet bank
franchise and a network of retail branches in Southern California,
operating as OneWest Bank, a division of CIT Bank, N.A.
cit.com.
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