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Jefferies Leads OSG’s Exit Financing as Company Emerges from Chapter 11

August 06, 2014, 07:40 AM
Filed Under: Shipping

Overseas Shipholding Group, Inc. (“OSG” or the “Company”) announced that it has emerged from Chapter 11 as a newly reorganized company. OSG emerges with a strong balance sheet, focused strategy and solid customer base.

"Today marks the start of a new beginning for our company,” said Captain Bob Johnston, President and Chief Executive Officer of OSG. “We are completing this process having resolved the issues that led to our decision to seek Chapter 11 protection. I want to thank our extraordinary employees, both at sea and ashore, who have been vital to our successful restructuring. We also appreciate the continued support of our valued partners, suppliers and customers who have been critical to our success throughout this process and whom we look forward to continue working with into the future.”

John Ray, OSG’s post-confirmation Chairman of the Board added, “Through our financial and operational restructuring, we have focused on creating a competitive structure to allow us considerable flexibility to grow the business while continuing to provide our customers with the high-quality service that they expect.”

Under the terms of the confirmed Amended Plan of Reorganization (the “Plan”), senior lenders were paid in full, and all allowed administrative claims and certain other allowed secured and unsecured claims are paid in full or unimpaired.

Today, the Company successfully closed on its Exit Financing agreement, led by Jefferies Finance LLC, which consists of two term loan facilities and two revolving loan facilities, totaling $1.35 billion. The term financing funded cash payment of obligations under the terms of the Plan and the revolvers provide additional liquidity to fund operations post-emergence.

The Company expects to apply to list its Class B common stock on the New York Stock Exchange and anticipates that the Class A common stock and both the Class A warrants and Class B warrants will be quoted in the over-the-counter market. The Company plans to issue a press release when trading in these markets has commenced. In addition, the Company has entered into a registration rights agreement with certain commitment parties in connection with their holdings of Class A common stock and Class A warrants, and plans to file a registration statement in connection with its obligations thereunder.

OSG filed for bankruptcy protection in November 2012 in the U.S. Bankruptcy Court for the District of Delaware. The Bankruptcy Court confirmed OSG’s final Amended Plan of Reorganization on July 18, 2014, and the appeal period expired on August 1, 2014.

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