Sustains up to 500 jobs for San Diego shipyard during construction
Commitment contingent upon loan guarantee from U.S. Maritime Administration
Plymouth Meeting, PA, October 22, 2012 - An affiliate of American Petroleum Tankers Parent LLC (“APT”), a company majority owned by funds managed by Blackstone on behalf of its investors, announced its commitment to build two new state-of-the-art tanker vessels at the National Steel and Shipbuilding Company (NASSCO) shipyard in San Diego. This commitment is contingent upon approval of a $340 million Title XI loan guarantee from the U.S. Department of Transportation's Maritime Administration (“MarAd”) that would be used to refinance APT’s existing five tankers. Should construction of the vessels proceed, they will be the first new product tankers to be ordered in the U.S. in two years.
The government-guaranteed loan program, Title XI, has historically provided between 80 to 87 percent of new build construction costs to support the U.S. shipbuilding industry. Construction of the new product tankers will help support the future of NASSCO as a key asset in the U.S. industrial base for military and commercial shipbuilding, will sustain up to 500 jobs during construction, and create some 84 long-term seagoing jobs when the vessels become operational.
Rob Kurz, Chief Executive Officer of APT said, “This is a demonstration of our long-term commitment to the U.S. maritime industry and to bolstering job creation in the U.S. It is a win-win for the Maritime Administration and our Company, and we are committed to working with the Maritime Administration and the Department of Transportation to close this financing and support our nation’s important maritime industry.”
Sean Klimczak, Managing Director of Blackstone said, “We have worked closely with MarAd over the past two years to present a loan application that would be the safest loan in Title XI history and that has met every MarAd program requirement. This loan is supported by five modern, state-of-the-art tankers, valued in excess of two times the amount of the loan requested by APT. We are looking forward to receiving MarAd’s approval of the loan so that we may begin construction of these two new vessels without further delay.”
APT was formed in 2006 to construct and operate product tankers in the domestic petroleum trades. APT’s current fleet consists of five double-hulled product tankers which were delivered by NASSCO) in 2009 and 2010.
About American Petroleum Tankers LLC:
American Petroleum Tankers Parent LLC and its subsidiaries (APT) is a U.S. based provider of Jones Act marine transportation services for refined petroleum products, crude oil, and chemicals in the U.S. domestic “coastwise” trade. The company’s fleet consists of five modern, double-hulled product tankers which were delivered from the National Steel and Shipbuilding Company (NASSCO) in 2009 and 2010.
Blackstone (NYSE: BX) is one of the world’s leading investment and advisory firms and is an experienced and active investor in the energy and natural resources sector. Funds managed by Blackstone have invested/committed approximately $6 billion in the sector to date across four continents. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies they invest in, the companies they advise and the broader global economy. Their alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at china.blackstone.com. Follow us on Twitter @Blackstone.