NEW YORK, Oct. 5 /PRNewswire/ -- General Maritime Corporation announced today that it has amended its $372 million senior secured credit facility, dated as of July 16, 2010 (the "Credit Facility").
Under the terms of the amended Credit Facility, the condition requiring the issuance of new common equity to finance at least 40% of the purchase price for the previously announced acquisition of seven vessels has been waived for a period of one year. All other material terms of the five-year facility remain unchanged. The $372 million Credit Facility, led by Nordea Bank Finland plc and DnB NOR, was successfully syndicated among four global lending institutions including NIBC Bank N.V., Skandinaviska Enskilda Banken AB (SEB), DVB Bank SE and Citibank, N.A.
Along with the amended Credit Facility, the Company entered into a $22.8 million bridge loan with Nordea Bank Finland plc and DnB NOR. Proceeds from the bridge loan will be used to fund a portion of the purchase price for the Genmar Maniate, a Suezmax newbuilding, which is expected to be delivered to General Maritime on October 6, 2010. The Genmar Maniate is the sixth of seven vessels to be delivered to the Company under its agreement previously announced on June 9, 2010 to acquire seven vessels from companies affiliated with the Metrostar Management Corporation.
The Company also announced that, under the terms of the $22.8 million bridge loan, its quarterly cash dividends will be reduced to $0.01 per share for the duration of the bridge loan. The other covenants under the bridge loan limiting the Company's use of cash are materially similar to those contained in the Company's existing credit facilities.
Jeffrey D. Pribor, Chief Financial Officer of General Maritime Corporation, stated, "We are pleased to complete the successful syndication and amendment of our $372 million Credit Facility while expanding our relationships with world-class banks. With our amended facility, we have increased our financial flexibility during a time when we continue to grow our modern, high-quality fleet. We appreciate the ongoing support from global lending institutions, underscoring General Maritime's leading industry position and future growth prospects."
About General Maritime Corporation
General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 37 tankers - seven VLCC, twelve Aframax, twelve Suezmax tankers, two Panamax and four Product tankers - with a total carrying capacity of approximately 5.6 million dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: loss or reduction in business from the Company's significant customers; the failure of the Company's significant customers to perform their obligations owed to us; changes in demand; a material decline in rates in the tanker market; changes in production of or demand for oil and petroleum products, generally or in particular regions; greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; changes in rules and regulations applicable to the tanker industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; actions taken by regulatory authorities; actions by the courts, the U.S. Coast Guard, the U.S. Department of Justice or other governmental authorities and the results of the legal proceedings to which the Company or any of its vessels may be subject; changes in trading patterns significantly impacting overall tanker tonnage requirements; changes in the typical seasonal variations in tanker charter rates; changes in the cost of other modes of oil transportation; changes in oil transportation technology; increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs); changes in the itineraries of the Company's vessels; adverse changes in foreign currency exchange rates affecting the Company's expenses; the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire vessels; sourcing, completion and funding of financing on acceptable terms; financial market conditions and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K/A for the year ended December 31, 2009 and its subsequent reports on Form 10-Q and Form 8-K.
For further information regarding the Company's amended Credit Facility and bridge loan, please refer to the Company's Current Report on Form 8-K filed with the Securities an Exchange Commission on October 5, 2010.
General Maritime Corporation
CONTACT: Jeffrey D. Pribor, Chief Financial Officer, General Maritime
Corporation, +1-212-763-5680
Web Site: http://www.generalmaritimecorp.com/
