General Maritime tenders for 10% notes

New York, Dec. 15 - General Maritime Corp. said it has begun a cash tender offer and consent solicitation for its $226.48 million of 10% senior notes due 2013.

For each $1,000 principal amount of notes, General Maritime is offering a price based on the bid-side yield of the 3 3/8% U.S. Treasury notes due Feb. 15, 2008. Pricing will be fixed at 2 p.m. ET two business days before the consent deadline. The total includes a consent payment of $30.00 per $1,000 that will only be paid to holders who tender by the consent deadline.

The consent solicitation is to amend the note indenture to eliminate substantially all of the restrictive covenants and the related default. The amendments would also eliminate restrictions related to the company's ability to pay dividends or repurchase stock.

The consent deadline is 5 p.m. ET on Dec. 29. 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 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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