General Maritime Refinancing Initiative

Press Release
Tuesday, May 10, 2011

Refinancing Initiatives Strengthen Company's Balance Sheet and Capital Structure

NEW YORK, May 9, 2011 /PRNewswire via COMTEX/ --

General Maritime Corporation (NYSE: GMR) announced today that it has completed the syndication of an Amendment of its 2005 revolving credit facility of $550 million and $200 million payment-in-kind toggle floating rate secured notes ("Secured Notes") with Oaktree Capital Management L.P. ("Oaktree"). Together, the Secured Notes and the amended revolving credit facility are expected to enable the Company to improve its liquidity and operational flexibility, while reducing its near-term cash requirements.

Consistent with our previous announcement, the amended facility provides for an extended maturity as well as changes to certain provisions including financial covenants and amortization schedule. Under the terms of the $550 million revolving credit facility, amounts borrowed will bear interest at LIBOR plus 4%. The facility, which will mature in 2016, will have a cash flow sweep of amounts in excess of $100 million (taking into account outstanding borrowing capacity) for the first two years and quarterly fixed amortization for years three through five. Nordea Bank Finland plc, DnB NOR and HSH Nordbank AG acted as the lead arrangers of the facility.

The $200 million payment-in-kind toggle rate Secured Notes will be guaranteed by General Maritime and certain of its subsidiaries, and secured by certain assets of those subsidiaries. The Company used $115 million of the proceeds from the Secured Notes to repay debt on the 2005 credit facility, used $25 million to repay debt on the 2010 credit facility and will use a portion of the proceeds of the Secured Notes for working capital purposes. The Secured Notes will mature in 2018, outside the Company's other scheduled debt maturities. Interest on the Secured Notes will pay-in-kind or in cash at the Company's option. There will be no amortization on the Secured Notes.

John P. Tavlarios, President of General Maritime Corporation, commented, "We are pleased to complete this transaction which strengthens our balance sheet and capital structure. Specifically, we refinanced our existing 2005 credit facility under favorable terms and ahead of the $600 million balloon maturity in October 2012. In addition, the Oaktree investment provides capital with no amortization or mandatory cash interest requirements until its maturity in 2018. We appreciate the strong support we continue to receive from both the capital markets and our banking syndicate, underscoring our industry leadership and strong future prospects."

The transaction was approved by an Independent Committee of the Company's Board who received financial advice from Jefferies & Company Inc. and Allen & Company LLC. In addition, Kramer Levin Naftalis & Frankel LLP provided legal advice to the Company.

Source: General Maritime Corporation

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