American Shipping seeks bondholder approval of loan refinancing

By Marisa Wong

Morgantown, W.Va., Aug. 26 – American Shipping Co. ASA, formerly Aker American Shipping ASA, is seeking bondholders’ approval of waivers and amendments to the agreement governing its senior callable PIK bonds, issue 2007/2018, according to a notice from bond trustee Nordic Trustee ASA.

The company is currently in the process of refinancing a bank loan. The refinancing, totaling about $500 million, will be secured by mortgages over each of 10 vessels owned by American Shipping’s subsidiaries.

Two tranches will have amortization profiles of 18 years. Under the bond agreement, any refinancing of the bank loan is not to have an amortization profile of more than 15 years.

As a result, the issuer is asking bondholders to approve the 18-year amortization and waive the bond agreement’s related requirement.

The company said that bondholders representing more than two-thirds of the outstanding bonds are in favor of the proposal.

Bondholders will vote on the proposal at a meeting scheduled for Sept. 2 in Oslo.

To approve the resolution, holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal.

In order to have a quorum, at least half of the bonds must be represented at the meeting.

The shipping company is based in Oslo.

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