Daily News: March 10, 2014

Tennebaum Capital Provides $65MM to Aker Philadelphia

Aker Philadelphia Shipyard ASA announced 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 for a secured term loan of $65 million with a variable interest rate of LIBOR plus 7.0%.

APSI said it also 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, a shipping and logistics company. 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, 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 for the construction of two 3,600 teu containerships with delivery in Q3 and Q4 2018.

Aker Philadelphia Shipyard is a U.S. commercial shipyard constructing vessels for operation in the Jones Act market.