US finance secures three MR newbuildingss

Aug 09 2013

CIT Maritime Finance has provided a $61.8 mill senior secured credit facility to a portfolio company of private equity concern Alterna Capital Partners, to finance the acquisition of three 50,000 dwt ECO-design MRs.

The IMO II/III product/chemical tankers are to be built at STX Offshore & Shipbuilding. The tankers are to be owned by Sterling Ocean Shipping, which is majority owned and controlled by Alterna, with technical management provided by Fleet Management.

All three vessels have been placed under long-term time charters with Stena Weco. The Sterling vessels represent the first in a series of STX next-generation ECO MR tanker designs.

CIT Maritime Finance structured and facilitated the transaction, while financing was provided by CIT Bank, the US commercial bank subsidiary of CIT. The transaction has a five-year term; additional terms were not disclosed.

This transaction represents CIT's third transaction with Alterna; the first two involved financing a portion of the construction cost and, later, of the delivered cost of the ‘American Phoenix’, a US-flagged Jones Act chemical tanker.

"We are proud to provide Alterna with this financing and further expand our loan portfolio in the maritime industry," said Svein Engh, managing director and group head of CIT Maritime Finance. "This is our third transaction with Alterna, which further highlights our expertise in the sector and our continued commitment to support our clients' growth initiatives."



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