International Seaways closed on a new $500 million term loan and a $50 million revolving credit facility.

Proceeds from the term loan will be used to refinance the $458 million outstanding balance of the company’s existing term loan and for general corporate purposes, including fleet renewal and growth. The revolver is currently undrawn. The term loan, which contains an accordion feature whereby the loan may be increased up to an additional $50 million subject to certain conditions, will carry an interest rate of LIBOR + 5.5%. The term loan has a final maturity date of June 22, 2022, while the revolving credit facility has a final maturity date of December 22, 2021.

“We are pleased to have successfully completed this refinancing under attractive terms, enabling International Seaways to significantly extend the company’s debt maturities, increase its borrowing capacity and further enhance its financial flexibility,” said Lois K. Zabrocky, International Seaways’ president and CEO. “With approximately $200 million of total liquidity, we are in a strong position to capitalize on attractive asset values, which are at a low point in the cycle, to further grow our fleet and earnings power.”

Jefferies Finance and J.P. Morgan served as joint lead arrangers, and UBS Securities served as joint bookrunner for the term loan. DNB Markets, Fearnley Securities, Pareto Securities and Skandinaviska Enskilda Banken acted as co-managers for the term loan. Skandinaviska Enskilda Banken AB provided the $50 million revolving credit facility.

International Seaway is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products.