American Shipping unit seeks to amend terms of callable bond due 2022

By Sarah Lizee

Olympia, Wash., Feb. 19 – American Shipping Co. ASA wholly owned subsidiary American Tanker Inc. is requesting a written resolution to make some amendments under its $220 million senior unsecured callable bond due 2022.

The amendments include the removal of amortization, according to a press release.

Also, the redemption clause would 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 would 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 would be changed to $1,000 from $200,000.

The company said a majority of holders have already given their support of the written resolution.

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

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

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

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