Overseas Shipholding Group Inc. (OSG), a transporter of crude oil and petroleum products, Wednesday said it signed a $389 million, 12-year secured facility with the Export-Import Bank of China, which also happens to be the first financing arrangement that China Exim Bank has extended to a US company.
The New York-based company also said the borrowings under the facility would be used to finance three very-large crude carriers and two Aframax crude oil tankers constructed in China. The two Aframaxes tankers are the Overseas Yosemite and Overseas Yellowstone, delivered in the first half of 2009. Aframax ship is an oil tanker, less than 120,000 metric tons deadweight.
Myles Itkin, Chief Financial Officer of OSG stated, "China has established itself as a major player in the shipbuilding industry. We welcome the opportunity to participate in its continued growth through this new business relationship."
As of December 31, 2008, Overseas Shipholding owned and operated a fleet of 122 vessels, of which 101 vessels operated in the international market and 21 operated in the United States Flag market.
OSG is currently trading at $35.39, down $0.35 or 0.98%, on a volume of 0.27 million shares.
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