International Seaways Announces $100 Million Prepayment of 2017 Term Loan Facility
International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, announced today that the Company is prepaying $100 million of the outstanding balance of its 2017 Term Loan Facility, together with a 1% prepayment fee, using cash set aside from the proceeds of vessel sales and a portion of the proceeds from the previously announced $123 million sale of its 49.9% stake in the Company’s LNG joint venture.
Cash Interest Expense Expected to Decrease by $8.2 million on an Annual Basis and $1.9 Million in Fourth Quarter 2019
“We are pleased to have further executed on our disciplined and accretive capital allocation strategy by using a substantial portion of our LNG sales proceeds to reduce leverage and significantly lower our cost of capital during a time when our cash position remains strong,” said Jeff Pribor, International Seaways’ CFO. “Following the $100 million debt prepayment, we anticipate cash interest expense to decrease by approximately $8.2 million on an annual basis and $1.9 million in the fourth quarter of 2019 based on current interest rates. Additionally, this leverage reduction positions us for further balance sheet optimization.”
