Overseas Shipholding Group announced that it has closed on a $33,150,000 loan led by Wintrust Commercial Finance (WCF), a division of Wintrust Asset Finance Inc. for a term of 5 years.
OSG’s subsidiary, OSG 204 LLC, obtained the loan to finance one new 204,000 barrel U.S. Flag oil and chemical ATB barge, which is being built by the Greenbriar Marine shipyard and is set to be delivered in the second quarter of 2020. As part of the financing, WCF and the other syndicate lenders received a collateral assignment of the vessel construction contract, and upon delivery of the barge to OSG 204 LLC, the lenders will hold a perfected first priority security interest and preferred ship mortgage against the vessel. The loan is also guaranteed by OSG.
Dick Trueblood, OSG’s Vice President and Chief Financial Officer stated, “We are more than pleased to have been able to close on this, our latest financing package, which supports our continuing investment in new assets set to join our fleet later this year. Given the volatile conditions prevailing in most financial markets at this time, it is appropriate that we recognize the efforts of WCF and the other lenders participating in delivering on this financing commitment. This transaction is the second financing for OSG arranged by WCF, and we welcome the opportunity to extend and expand this valuable relationship.”
Sam Norton, President and CEO of OSG commented, “Our investment in new barges under construction is an important piece of our continuing commitment to sustaining OSG’s leadership position in the US flag market for marine transportation of crude oil and its refined products. The capital provided by WCF and its partners adds support to this initiative, expanding OSG’s available liquidity and positioning the Company well to continue its progress towards sustained profitability.”