The “New Osprey”

On Tuesday, May 13th, Osprey Maritime Ltd. announced that it intended to purchase all outstanding shares in Gotaas-Larsen (GL), the privately-held British tanker and LNG carrier owner, for $750 million. It is anticipated that the acquisition of GL’s fleet, which consists of four double-sided VLCCs and five LNG carriers, will be accomplished through a credit facility consisting of a combination of new bank debt and equity rights issues, totaling $944 million, $200 million of which will be used to refinance existing Osprey debt.

The LNG carriers will continue to operate under the Gotaas-Larsen flag, and the former owners will receive an 8% equity interest equal to $40 million, and have a seat on the board of directors of the company. The deal, which was lead by DenNorske Bank and assisted by bank syndicates Christiana and Indosuez, will make Osprey an overnight behemoth in the LNG trade. The company has indicated that it may sell part of the newly acquired VLCC fleet.

There is little doubt that Osprey’s acquisition of GL was a “good fit” in developing what those close to the company call “the new Osprey,” a transportation group composed of three distinct areas of focus: products, crude and LNG carriers. Osprey’s marketing strength and consolidation savings will be key elements in running the newly acquired vessels efficiently.

This is only an excerpt of The “New Osprey”

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