General Maritime gets required consents, sets pricing for 10% notes

By Jennifer Chiou

New York, Dec. 30 - General Maritime Corp. said it received the required consents to amend the indenture of its $226.48 million of 10% senior notes due 2013.

As of the consent deadline at 5 p.m. ET on Dec. 29, holders of $226.46 million or 99.99% of notes had tendered their securities.

The amendments eliminate substantially all of the restrictive covenants and the related default provisions as well as restrictions related to the company's ability to pay dividends or repurchase stock. General Maritime said it has entered into a supplemental indenture.

The company said the supplemental indenture will not become effective until it purchases the tendered notes.

General Maritime previously said on Dec. 27 that as part of the consent solicitation it is no longer seeking to eliminate the events of default in the indenture based on insolvency acts or orders.

For each $1,000 principal amount of notes in its tender offer, General Maritime will pay $1,151.12, assuming a payment date of Dec. 30 for those who tendered by the consent deadline. The payout includes a consent payment of $30.00 per $1,000.

The company based pricing on the bid-side yield of the 3 3/8% U.S. Treasury notes due Feb. 15, 2008.

The tender ends at 5 p.m. ET on Jan. 17.

Assuming a payment date of Dec. 30 and using the Dec. 13 reference Treasury yield, the price including the consent payment would have been $1,149.02 per principal amount.

The New York crude oil shipping company launched the offer on Dec. 15.

The company said the offer is subject to conditions including the receipt of the necessary consents to amend the notes and it being able to borrow funds to pay for the notes.

Goldman, Sachs & Co. is the dealer manager and solicitation agent (800 828-3182 or call collect 212 357-7867). D.F. King & Co., Inc. is the information agent (800 269-5550).

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