Overseas Shipholding trims term loan pricing, adjusts structure

By Sara Rosenberg

New York, June 30 – Overseas Shipholding Group Inc. lowered pricing on the $600 million five-year covenant-light term loan (B1) at OSG Bulk Ships (domestic borrower) to Libor plus 425 basis points from Libor plus 475 bps, according to a market source.

Additionally, the five-year covenant-light term loan (B1) at OSG International (international borrower) was upsized to $625 million from $600 million and pricing was trimmed to Libor plus 475 bps from Libor plus 525 bps, the source said.

Furthermore, the original issue discount on both term loans firmed at 99, the wide end of the 99 to 99˝ talk, and the 101 soft call protection on both loans was shortened to six months from one year, the source continued.

As before, both term loans have a 1% Libor floor.

With the term loan upsizing, the 4˝-year cash-flow revolver at OSG International was downsized to $50 million from $75 million.

Pricing on the cash-flow revolver remains Libor plus 450 bps with a 1% Libor floor.

The company’s $1.35 billion credit facility also includes a $75 million 4˝-year asset-based revolver at OSG Bulk Ships with pricing that can range from Libor plus 225 bps to Libor plus 275 bps based on availability.

Jefferies Finance LLC is the lead on the deal.

Proceeds will be used to help fund the company’s exit from bankruptcy.

Overseas Shipholding, a New York-based tanker company, filed for bankruptcy on Nov. 14, 2012 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 12-20000.

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