Overseas Shipholding Group Announces Off-Market Warrant Repurchase
September 15 2023 - 8:00AM
Business Wire
Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or
“OSG”) today announced that it has agreed to purchase 13,851,382
warrants for the Company’s common stock from entities managed by
Cyrus Capital Partners, L.P. (“Cyrus”) for a total consideration of
$11,384,451 in a privately negotiated transaction. The warrants
purchased were convertible into 2,631,763 shares of OSG’s Class A
common stock. The purchase is expected to be completed on Monday,
September 18, and the purchase price will be paid out of OSG’s
available cash. The warrants sold in this transaction represent all
of the warrants held by Cyrus.
Sam Norton, OSG’s President and CEO, stated, “The agreement to
purchase nearly 75% of OSG’s outstanding warrants is a welcome
development. Retiring these warrants will simplify our capital
structure and will reduce our fully diluted share count, with the
benefit accruing to all shareholders. As well, the purchase of
warrants does not impact the number of our outstanding shares, thus
maintaining market liquidity. We view the price paid for the
warrants to be attractive and, as with the case of other recently
transacted share repurchases, has been done at an equivalent
enterprise value to projected 2023 adjusted EBITDA multiple of less
than four times.”
Mr. Norton added, “The recent success of our operations and the
duration of our current book of charter contracts continues to give
OSG the appropriate level of visibility to reasonably expect a
steady stream of cash flows from both our specialized and
conventional trading businesses for the foreseeable future. The
purchase of shares and warrants at attractive prices is one of
several options for utilizing excess cash that our Board of
Directors continuously reviews, and we look forward to reporting on
cash deployment opportunities in the quarters ahead.”
About Overseas Shipholding Group, Inc
Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly
traded company providing liquid bulk transportation services in the
energy industry for crude oil and petroleum products in the U.S.
Flag markets. OSG is a major operator in the Jones Act industry and
in the Tanker Security Program. OSG’s U.S. Flag fleet consists of
Suezmax crude oil tankers doing business in Alaska, conventional
and lightering ATBs, shuttle and conventional MR tankers, and
non-Jones Act MR tankers that participate in the U.S. Tanker
Security Program and for the Military Sealift Command.
OSG is committed to setting high standards of excellence for its
quality, safety, and environmental programs. OSG is recognized as
one of the world’s most customer-focused marine transportation
companies and is headquartered in Tampa, FL. More information is
available at www.osg.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical facts
should be considered forward-looking statements, including but not
limited to words such as “may”, “will”, “intends”, “plans”,
“expects” and similar expressions. Such forward-looking statements
represent the Company’s reasonable expectations with respect to
future events or circumstances based on various factors and are
subject to various risks, uncertainties, and assumptions relating
to the Company’s operations, financial results, financial
condition, business, prospects, growth strategy and liquidity.
Undue reliance should not be placed on any forward-looking
statements and, when reviewing any forward-looking statements,
investors should carefully consider factors including, but not
limited to, those risk factors discussed in the Company’s Annual
Report on Form 10-K and in the Company’s subsequently filed
Quarterly Reports on Form 10-Q filed with the SEC. The Company
assumes no obligation to update or revise any forward-looking
statements except as may be required by law. Forward-looking
statements in this press release and written and oral
forward-looking statements attributable to the Company or its
representatives after the date of this press release are qualified
in their entirety by the cautionary statement contained in this
paragraph and in other reports hereafter filed by the Company with
the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20230915330155/en/
Investor Relations & Media Contact: Susan Allan,
Overseas Shipholding Group, Inc. (813) 209-0620 sallan@osg.com
Overseas Shipholding (NYSE:OSG)
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