OSG spinning off U.S.-flag tankers
Overseas Shipholding Group Inc. said it is spinning off a part interest in its Jones Act tanker operations to a new limited partnership.
The New York based company is creating a new company called OSG America L.P., which has filed a proposed initial public offering of 7.5 million common units or about 22.8 percent of the company, with OSG retaining the rest. Underwriters are granted an option to purchase more than 1.1 million additional units.
OSG America will have a fleet of 10 product tankers, seven articulated tug-barges, one conventional tug-barge and a 37.5 percent interest in a joint venture that operates five tankers in the Alaska/mainland trade. It will also have options to acquire other tankers and barges that OSG has on order.
Proceeds from sale of partnership units will be used to pay OSG about $136.5 million in cash, and the new company will also borrow $50.8 million to repay $50 million in OSG debt and $800,000 in expenses.
OSG spinning off U.S.-flag tankers
