Asset Backed

Overseas Shipholding Group, Inc. is a publicly traded company (NYSE Symbol: OSG) headquartered in Tampa, Florida. It is a leading provider of energy transportation services, delivering oil and other petroleum products throughout the coastal US flag markets. Founded in 1948, Overseas Shipholding has operated through multiple shipping cycles and is a preferred energy transportation provider to major oil companies, refiners, and traders. It is the operator and manager of one of the largest US-based petroleum tanker and articulated tug barge vessel fleets in the country operating primarily under the Jones Act.

We have maintained a direct calling effort with the senior management of Overseas Shipholding for several years, working on various financial projects. Eventually, they sought refinancing of their existing public Term Loan B, held by institutional investors, which was coming due within the next year.  For the management team, the primary goal of the refinancing was to reduce the number of lenders in their loan facility and to partner with a more relationship-oriented lender group.

To that end, we worked with Overseas Shipholding in its capacity as the Administrative Agent, Collateral Agent, Mandated Lead Arranger, and Sole Bookrunner to provide a new $325 million Senior Secured Term Loan Credit Facility with a small club of lenders consisting primarily of insurance companies and banks. The new term loan also has an incremental $40 million accordion feature that was undrawn at closing, which could provide funding for growth and expansion.

We anchored the lead lending position and arranged the balance of the transaction under a tight timeframe. With the completion of the transaction, Overseas Shipholding gained a strong appreciation for our relationship-focused approach, certainty of execution, and deep marine and shipping lending expertise.