OMI $517 million new credit facilities to close by Nov. 29

By Sara Rosenberg

New York, Nov. 17 - OMI Corp. expects to close on $517 million in new credit facilities containing a new term loan and an amended and restated revolving credit facility by Nov. 29, according to a company news release.

The $375 million 10-year secured revolver, which amends and restates an existing undrawn $245 million secured revolver, is being led by Nordea, a company spokesman told Prospect News. Borrowings under the tranche will carry an interest rate of Libor plus 80 basis points.

The $142 million 10-year secured term loan, of which a portion has already closed, is being led by DnB NOR and carries an interest rate of Libor plus 80 basis points as well, the spokesman said.

Proceeds from the term loan will be used to finance the acquisition of four vessels, three of which have been delivered and the fourth of which is expected to be delivered to it before the end of the year.

At close, the company will repay in full its $250 million revolving credit facility that was used as bridge financing for vessel acquisitions.

The credit facilities being replaced through this new deal have margins ranging from 1.00% to 1.625%, a company news release said.

OMI is a Stamford, Conn., owner and operator of crude oil tankers and product carriers.

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