U.S. Shipping Partners' Joint Venture for Product Tanker Construction Provides Update on Operations
May 15 2008 - 8:30AM
Marketwired
EDISON, NJ , a joint venture formed and financed by affiliates
of The Blackstone Group, other investors and U.S. Shipping Partners
L.P. (NYSE: USS) to finance the construction of five 49,000
deadweight ton double-hulled product tankers by National Steel and
Shipbuilding Company ("NASSCO"), confirmed today that the $500
million of financing committed by the parties remains in place. The
Joint Venture has obtained charters for four of these five vessels
and is actively pursuing additional charters. Construction is
currently on time and on budget. NASSCO is currently scheduled to
deliver the first tanker in the second quarter of 2009, the second
tanker later in 2009, two tankers in 2010 and one tanker in 2011.
In addition, the Joint Venture has the option to obtain U.S.
Shipping Partners' rights to have NASSCO construct an additional
four tankers.
The Joint Venture, which is 60% owned by affiliates of The
Blackstone Group and other investors, and managed and 40% owned by
U.S. Shipping Partners, has $500 million of committed debt and
equity financing, including $430 million of committed debt and
equity financing from affiliates of The Blackstone Group and other
third party investors, and $70 million of equity from U.S. Shipping
Partners that is already funded and secured by a letter of credit.
The Joint Venture's business operations and the construction of the
five product tankers is continuing as planned.
Contact Information: Albert Bergeron Chief Financial Officer USS
Products Investor LLC 1-866-467-2400
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