OSG nets $49.1 million loan

 NYSE-listed tanker owner and operator Overseas Shipholding Group has closed a $49.1 million loan to finance a newbuild oil and chemical ATB barge.

OSG’s subsidiaries, OSG 205 LLC and OSG Courageous II LLC, will use the loan to refinance the tug to which the barge is being paired, the OSG Courageous.

The new 204,000 barrel U.S. Flag ATB barge, the OSG 205, is being built by the Greenbriar Marine shipyard and is set to be delivered in the next few weeks.

The company took delivery of the OSG 204, a 204,000 barrel capacity oil and chemical tank barge, and a sister vessel to OSG 205, from Greenbrier Marine back in June 2020.

The Jones Act barge has been built in compliance MARPOL Annex VI Regulation 13 Tier III standards regarding nitrogen oxide emissions within emission control areas. Under the Tier III standard, NOx emissions must be reduced by approximately 75% when compared to Tier I engines.

As part of the financing, the lender received a collateral assignment of the vessel construction contract for the barge and, upon delivery of the barge, the lender will hold a perfected first priority security interest and preferred ship mortgage. The lender also holds a perfected first priority security interest and preferred ship mortgage against the tug.

“The transaction marks an important milestone in completing the construction and delivery of the second of two barges built for OSG at Greenbriar Marine shipyard,” Sam Norton, President and CEO of OSG commented.

“All complex projects require the contribution of multiple partners to achieve success, and we are pleased to have teamed up with our financing partner and Greenbriar in providing the necessary resources to bring this project to fruition.”

The barge is set to commence service under a one-year time charter early next month.

OSG’s 21 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, one conventional ATB, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program.