CIT’s understanding of the Jones Act industry and the team’s deep experience and expertise in the maritime sector is what attracted us to the lender. We look forward to building on this relationship.
NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE:CIT), cit.com, a global leader in transportation finance, today announced that CIT Maritime Finance served as Sole Lead Arranger and Administrative Agent in a $150 million senior secured credit facility to American Shipping Company ASA (AMSC). The facility will be used to refinance Overseas Martinez and Overseas Tampa — two Jones Act tankers that are currently on long-term bareboat contracts to Overseas Shipholding Group. Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT. Terms of the transaction were not disclosed.
“We’re pleased with CIT’s ability to put this financing in place for these two Jones Act vessels,” said Pål Lothe Magnussen, President and CEO, AMSC. “CIT’s understanding of the Jones Act industry and the team’s deep experience and expertise in the maritime sector is what attracted us to the lender. We look forward to building on this relationship.”
Omer Donnerstein, Director, CIT Maritime Finance, said, “This is a great opportunity to commence a relationship with AMSC while lending against strong assets with excellent contract coverage. The company is a best-in-class tanker owner with an experienced and respected executive team. We’re pleased to put our knowledge to work for AMSC and structure an attractive deal.”
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About American Shipping Company ASA
Established in 2005 and listed on the OSE, AMSC is a ship-owning company with ten modern handy size product tankers on long-term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade. AMSC has a significant contract backlog, as well as a profit sharing agreement with OSG, which offers visibility with respect to future earnings and potential dividend capacity. The Company has an ambition to pay attractive and growing dividends to its shareholders and has guided roughly 15% year-over-year dividend growth from 2015 to 2016. americanshippingco.com
About CIT Maritime Finance
CIT Maritime Finance offers senior secured loans, sale-leasebacks and bareboat charters to owners and operators of oceangoing cargo vessels, including tankers, bulkers, container ships, car carriers, and offshore vessels and drilling rigs. cit.com/maritime
Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $65 billion in assets. Its principal bank subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has more than $30 billion of deposits and more than $40 billion of assets. It provides financing, leasing and advisory services principally to middle market companies across more than 30 industries primarily in North America, and equipment financing and leasing solutions to the transportation sector. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. cit.com.