OSG U.S. flag spin-off prices common units.
A U.S.-flag spin-off of Overseas Shipholding Group expects to raise $142.5 million to $157.5 million through an initial public offering of common partnership units.
OSG America LP, a limited partnership, said it expects to price 7.5 million units at $19-$21 per unit, which would net it $136.5 million at $20 per share. Underwriters also have the option to buy up to 1.1 million units to cover overallotments.
Overseas Shipholding Group will retain about a 76 percent interest in the new U.S.-flag partnership.
The new partnership will initially have a fleet of 18 tankers and tank barges for moving petroleum products, and may grow to 30 vessels by 2010 after new ships are added and older vessels are retired.
OSG U.S. flag spin-off prices common units.
