NEW YORK, Feb. 10, 2011 /PRNewswire/ -- General Maritime Corporation (NYSE: GMR) announced today that it has completed the sale of the Genmar Princess, a 1991-built Aframax tanker, to an unaffiliated third party, generating net proceeds of $7.5 million. The Company also announced it has entered into an agreement to sell the Genmar Gulf, a 1991-built Suezmax tanker, in a separate transaction with another unaffiliated third party. The sale of the Genmar Gulf is expected to generate net proceeds of $11.0 million and close by February 28, 2011. The Company intends to use net proceeds from the sale of both vessels, which are expected to total approximately $18.5 million, to pay down debt under the Company's $750 million revolving credit facility.
The Company also announced it has completed the previously announced sale of the last of three product tankers, the 2005-built Stena Concept, to affiliates of Northern Shipping Fund Management Bermuda, Ltd., generating net proceeds of $21.0 million. General Maritime received total net proceeds of $61.7 million from the sale and leaseback of all three product tankers, the Stena Concept, the Stena Contest and the Genmar Concord, a portion of which was used to repay the Company's $22.8 million bridge loan, plus $0.1 million in fees and accrued and unpaid interest, on February 8, 2011. As a result of the repayment of the bridge loan, the Genmar Vision, a 2001-built VLCC, was released from its mortgage.
In connection with the sale of the Stena Concept, the vessel has been leased back to General Maritime under a previously announced bareboat charter entered into with the purchasers for a period of seven years at a rate of $6,500 per day for the first two years of the charter period and $10,000 per day for the remainder of the charter period. The Stena Concept will continue to be employed on a time charter as previously disclosed by General Maritime at an adjusted rate of $15,000 per day until July 4, 2011. General Maritime has options to repurchase the three product tankers at previously announced prices.
John P. Tavlarios, President of General Maritime Corporation, commented, "With the sale of the Genmar Princess and the agreement to sell the Genmar Gulf, we have taken proactive measures to enhance the age profile of our fleet and improve our liquidity position. We are also pleased to complete the sale and leaseback of the three product tankers and repay our bridge loan, as planned."
About General Maritime Corporation
General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. Upon completion of the sale of the Genmar Gulf, General Maritime will own a fully double-hull fleet of 32 tankers - seven VLCC, eleven Aframax, eleven Suezmax tankers, two Panamax and one Product tanker - with a total carrying capacity of approximately 5.2 million dwt. The Company also has three Product tankers that are chartered-in with options to purchase the vessels. The Company controls tonnage totaling 5.6 million dwt, including the owned fleet and the chartered-in fleet.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: the failure of the purchasers or the Company's significant customers to perform their obligations owed to us; changes in the itineraries of the Company's vessels; the completion and execution of definitive documentation for, and the fulfillment of the closing conditions under, the Company's agreements to sell vessels; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K/A for the year ended December 31, 2009 and its subsequent reports on Form 10-Q and Form 8-K.
SOURCE General Maritime Corporation