Cat Financial $ 150 Mln Loan for Philly Shipyard

Maritime Activity Reports, Inc.

December 30, 2015

Aker Philadelphia Shipyard which becames Philly Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the U.S. Jones Act market. Photo Philly Shipyard

Aker Philadelphia Shipyard which becames Philly Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the U.S. Jones Act market. Photo Philly Shipyard

 

Philly Shipyard, Inc. (PSINC), the sole operating subsidiary of Philly Shipyard ASA, announced today that it has signed a commitment letter with Caterpillar Financial Services Corporation (Cat Financial) for a USD 150 million loan facility to finance the construction of four next generation 50,000 dwt product tankers, designated as Hulls 025-028.  The facility will be subject to a maximum borrowing amount of USD 75 million per vessel and secured by a first lien on the four vessels. The loans will accrue interest at three-month LIBOR plus 3.00% as defined in the commitment letter.

The company expects to enter into definitive agreements for this facility in Q1 2016.  This facility will be a continuation of the extensive cooperation between Philly Shipyard and Cat Financial that will include a total of 26 vessels, including both product tankers and containerships, and span a period of 15 years when Hull 028 is delivered.
 
All four vessels to be financed by this facility are currently under contract with Philly Tankers LLC.  As previously announced by PHLY, the shipbuilding contract for each of these vessels will be assigned at delivery by Philly Tankers LLC to a subsidiary of Kinder Morgan, Inc.
Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week

Subscribe for Maritime Reporter E-News