Nordic American Tankers Limited (NYSE:NAT) - Full Financing of the Three Newbuildings is in place.
December 01 2017 - 11:46AM
Hamilton, Bermuda, December 1, 2017
In our message of November 3, 2017, we informed shareholders
about the schedule for financing of the three NAT newbuildings
under construction at Samsung shipyard in South Korea. We are
now pleased to announce that NAT has entered into final agreements
with a subsidiary of Ocean Yield ASA for the financing of the
outstanding commitments of $39 million per ship, due on
delivery.
30% of the contract price for each vessel ($55.7 m) was paid
cash by NAT to the yard when the vessels were ordered in October
2016. The three Suezmax newbuildings are expected to be delivered
during the latter part of 2018. The financed amount by Ocean
Yield is about $43 million per vessel.
The agreements are based on a 10-year bareboat charter for each
vessel. NAT will buy back the vessel at the end of the charter, but
also has the flexibility to buy-back the vessels from Ocean Yield
after year five and seven. Ocean Yield ASA, a company within the
Aker sphere, is listed on Oslo Stock Exchange (OSE).
The Chairman & CEO, Herbjørn Hansson, commented: "It is
exciting to do business with Ocean Yield , which is 66% owned
by Aker ASA. We are pleased to have secured solid long term
financing for the three newbuildings with such good companies."
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words "believe,"
"anticipate," "intend," "estimate," "forecast," "project," "plan,"
"potential," "will," "may," "should," "expect," "pending" and
similar expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions
were reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections. We undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Important factors that, in our view, could cause
actual results to differ materially from those discussed in the
forward-looking statements include the strength of world economies
and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand in the tanker
market, as a result of changes in OPEC's petroleum production
levels and worldwide oil consumption and storage, changes in our
operating expenses, including bunker prices, drydocking and
insurance costs, the market for our vessels, availability of
financing and refinancing, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other important factors
described from time to time in the reports filed by the Company
with the Securities and Exchange Commission, including the
prospectus and related prospectus supplement, our Annual Report on
Form 20-F, and our reports on Form 6-K.
Contacts:
Herbjørn Hansson, Chairman
& CEONordic American Tankers LimitedTel: +1 866 805
9504 or +47 90 14 62 91 |
Bjørn Giæver, CFONordic
American Tankers LimitedTel: +1 888 755 8391 or
+47 91 35 00 91 |
Gary J. Wolfe Seward &
Kissel LLP, New York, USA Tel: +1 212 574 1223 |
www.nat.bm |
Attachments:
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