Philly Shipyard Finalizes Construction Funding From Cat Financial
May 24 2016 - 12:55AM
Philly Shipyard ASA (Oslo: PHLY)
announced today that its wholly owned U.S. subsidiary, Philly
Shipyard, Inc. (PSI) has entered into a definitive loan agreement
with Caterpillar Financial Services Corporation (Cat Financial) for
a USD 150 million loan facility to finance the construction of four
product tankers, designated as Hulls 025-028. This facility is
subject to a maximum borrowing amount of USD 75 million per vessel
and secured by a first lien on the four vessels. The loans under
this facility will accrue interest at three-month LIBOR plus 3.00%
as defined in the loan agreement. The commitment letter for this
facility was originally disclosed on December 30, 2015.
This facility is a continuation of
the extensive cooperation between Philly Shipyard and Cat Financial
that now includes a total of 26 vessels, including both product
tankers and containerships, and will span a period of 15 years when
Hull 028 is delivered in 2017.
All four vessels to be financed by
this facility are currently under contract with Philly Tankers
LLC. As previously announced by PHLY, the shipbuilding
contract for each of these vessels will be assigned at delivery by
Philly Tankers LLC to American Petroleum Tankers (APT), a
subsidiary of Kinder Morgan, Inc.
Philly Shipyard has delivered 23
ships in its 17 year history. The four 50,000 dwt product
tankers for APT are currently under construction and have planned
deliveries in 2016 and 2017. Also under construction at the
shipyard is one 50,000 dwt product tanker for Crowley Maritime
Corporation with a planned delivery during Q3 2016 and two 3,600
TEU containerships for Matson Navigation Company, Inc. with planned
deliveries in Q3 2018 and Q1 2019. For more information on Philly
Shipyard transactions and projects, please visit
www.phillyshipyard.com.
Philly Shipyard is a leading U.S.
commercial shipyard constructing vessels for operation in the Jones
Act market. It possesses a state-of-the-art shipbuilding
facility and has earned a reputation as the preferred provider of
oceangoing merchant vessels with a track record of delivering
quality ships. Philly Shipyard is listed on the Oslo Stock Exchange
and is majority-owned by Aker Capital II AS, which in turn is
majority-owned by Aker ASA. Aker is a Norwegian industrial
investment company that creates value through active
ownership. Aker's investment portfolio is concentrated on key
Norwegian industries that are international in scope: oil and gas,
fisheries and biotechnology, and marine assets. Aker's industrial
holdings comprise ownership interests in Aker Solutions, Kvaerner,
Det norske oljeselskap, Aker BioMarine, Ocean Yield, Havfisk and
Akastor.
###
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Philly Shipyard ASA via Globenewswire
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