Oslo-listed American Shipping Company (AMSC) has finalised its new $305m loan package despite coronavirus turmoil in financial markets.
The company said the facility refinances nine of its 10 products tankers chartered to OSG, "despite the current challenging financial environment."
The five-year deal involves new and existing lenders.
AMSC chief executive Pal Lothe Magnussen said: "The new facilities, with attractive terms, provide further support for AMSC's strong debt service coverage and dividend capacity.
"The combination of long term 'come hell and high water' bareboat charter contracts with new five year debt facilities, reaffirms the stable cash flow profile of our business."
The refinancing is structured in two separate facilities: a $160m loan secured by five vessels with a club of three banks consisting of BNP Paribas, SEB and National Australia Bank; and $145m secured by four tankers, with a syndicate of four lenders consisting of Prudential Private Capital, Siemens Financial Services, Wintrust Asset Finance and Atlantic Union Equipment Finance.
The first is priced at Libor plus 270 points and the second at Libor plus 325 points.
AMSC has a "significant" contract backlog as well as a profit sharing agreement with OSG, which offers visibility with respect to future cash flows and potential dividend capacity, it said.
The company added it "has an ambition to pay attractive dividends to its shareholders."
