American Shipping gets OK to amend terms of callable bond due 2022

By Wendy Van Sickle

Columbus, Ohio, March 5 – American Shipping Co. ASA wholly owned subsidiary American Tanker Inc. received bondholder approval to make some amendments under its $220 million senior unsecured callable bond due 2022, according to a press release issued Tuesday.

On Feb. 18, the company requested a written resolution in support of amendments including the removal of amortization.

On Tuesday, the proposed resolution reached the required majority of the total number of voting bonds, and the proposal was adopted, according to Tuesday’s update, which noted the bond agreement will now be changed as set out in the written resolution.

Additional changes include that the redemption clause will be changed to redemption in full at maturity, from partial redemption by four semiannual installments each of $10 million starting 42 months after issuance.

The early redemption prices will also be changed to the following:

• 106% of par plus accrued interest from the first call date to but excluding the interest payment date falling 36 months after the issue date;

• 104% of par plus accrued interest from the interest payment date falling 36 months after the issue date to but excluding the interest payment date falling 48 months after the issue date; and

• 102% of par plus accrued interest from the interest payment date falling 48 months after the issue date to but excluding the maturity date.

Additionally, the initial nominal amount of each bond will be changed to $1,000 from $200,000.

The issuer offered a one-time amendment fee of 0.25% of the face value of the bonds for holders who accepted the proposed resolutions.

The voting deadline was 7 a.m. ET on March 5.

American Shipping, formerly known as Aker American Shipping ASA, is an Oslo-based shipping company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.