Overseas Shipholding Group (OSG) has acquired some fresh debt to take care of some old debt.
The Jones Act player closed on a five-year $325m term loan credit facility with Prudential Insurance and other lenders to repay debt owed to Jefferies Finance through a term loan.
The new loan's annual interest rate is equal to current 30-day Libor plus 5% and secured by OSG Bulk Ships stock.
OSG also shortened the credit line on a $75m loan with Wells Fargo Bank and extended it to 2 August 2019, lowering the number of OSG ships serving as collateral.
OSG's fleet consists of 21 five articulated tug barges (ATB), two lightering ATBs, three shuttle tankers, nine medium-range tankers and two non-Jones Act MR tankers that participate in the US Maritime Security Program.
It has also ordered two non-Jones Act MR tankers and one Jones Act compliant barge set for 2019 and 2020 deliveries.
