Aker Philadelphia Shipyard secures commitment for an additional $65m term loan
Aker Philadelphia Shipyard ASA announces that its wholly owned U.S. subsidiary, Aker Philadelphia Shipyard, Inc. (APSI), has signed a commitment letter with a group of private lenders led by Tennenbaum Capital Partners, LLC for a secured term loan of $65 million with a variable interest rate of LIBOR plus 7.00%. This loan is expected to be fully funded by Q4 2014 with a five-year maturity occurring in 2018. The new term debt facility is subject to agreement on definitive documentation and fulfillment of customary closing conditions.
As previously announced, APSI has secured commitments for a secured term loan of up to $60 million from PIDC Regional Center that matures in 2019 and carries a fixed 2.75% interest rate, and $120 million of construction period financing from Caterpillar Financial Services for the first four product tankers with Crowley. It is expected that the two secured term loans and the construction financing, once closed, will fulfill all of the APSI’s financing needs for its current backlog.
APSI is currently constructing two 115,000 dwt crude oil carriers for SeaRiver Maritime, Inc., ExxonMobil Corporation’s U.S. marine affiliate. Both of these crude oil tankers are scheduled for delivery in 2014. APSI also has contracts for the construction of four product tankers with Crowley with deliveries in 2015 and 2016 as part of a joint venture. In addition, APSI has contracts with Matson Navigation Company, Inc. for the construction of two 3,600 teu containerships with delivery in Q3 and Q4 2018.
Aker Philadelphia Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as the preferred provider of oceangoing merchant vessels with a track record of delivering quality ships. Aker Philadelphia Shipyard is listed on the Oslo Stock Exchange and is 71.2 percent owned by Converto Capital Fund, which in turn is majority-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker‘s investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets. Aker‘s industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Det norske oljeselskap, Aker BioMarine, Ocean Yield and Havfisk.
Tennenbaum Capital Partners, LLC ("TCP") is a Los Angeles-based alternative investment management firm focused on performing and special situation credit for middle-market companies. TCP manages a publicly-traded business development company, TCP Capital Corp. (NASDAQ: TCPC), as well as other funds and accounts. Since its founding, TCP has invested more than $11.9 billion in over 280 companies.
