U.S. Shipping Partners L.P. Agrees to Acquire Double Hulled Product Tanker
09 July 2005 - 2:18AM
PR Newswire (US)
U.S. Shipping Partners L.P. Agrees to Acquire Double Hulled Product
Tanker EDISON, N.J., July 8 /PRNewswire-FirstCall/ -- On July 5,
2005, U.S. Shipping Partners L.P. (the "Partnership") agreed to
acquire from Wilmington Trust Company (the "Trustee") the motor
vessel GUS W. DARNELL for an aggregate purchase price of $25
million. The vessel is a Jones Act coastwise double hulled product
tanker, built in 1985, capable of carrying approximately 240,000
barrels. The vessel was built for use by the Military Sealift
Command of the U.S. Navy as part of a fleet of six vessels, which
they have used primarily to deliver jet fuel to various locations
in the world. The transaction will be financed utilizing available
cash and the Partnership's existing credit facilities. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041101/USSPLOGO ) Upon
delivery from the Trustee, expected to take place in September
2005, the vessel will be placed in drydock in Singapore for
approximately 35 days and will be available for charter by November
2005. The vessel will be renamed upon delivery. This acquisition is
expected to be accretive to the Partnership's distributable cash
flow per unit once the vessel is available for charter. The
transaction is subject to customary closing conditions, including
satisfactory inspection of the vessel. "This vessel's acquisition
will constitute an attractive addition to our fleet. In addition to
being double hulled and fully compliant with OPA 90 regulations,
vessels in this size range are in high demand. Market conditions
are currently tight and we expect strong interest in chartering the
vessel," said Paul Gridley, Chairman and Chief Executive Officer.
About U.S. Shipping Partners L.P. U.S. Shipping Partners L.P. is a
leading provider of long-haul marine transportation services,
principally for refined petroleum products, in the U.S. domestic
"coastwise" trade. U.S. Shipping Partners L.P. is also involved in
the coastwise transportation of petrochemical and commodity
chemical products. For additional information about U.S. Shipping
Partners L.P., please visit http://www.usslp.com/ . This press
release may include "forward-looking statements" as defined by the
Securities and Exchange Commission. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. These statements are based on
certain assumptions made by the company based on its experience and
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the company, which may cause our actual results to
differ materially from those implied or expressed by the
forward-looking statements. Such assumptions, risks and
uncertainties are discussed in detail in the Partnership's filings
with the SEC.
http://www.newscom.com/cgi-bin/prnh/20041101/USSPLOGODATASOURCE:
U.S. Shipping Partners L.P. CONTACT: Albert E. Bergeron, Chief
Financial Officer of U.S. Shipping Partners L.P., +1-732-635-1500
Web site: http://www.usslp.com/
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