14 August 2015
Singapore-based Norstar Tankers Ltd (“Norstar”) has expanded its fleet with the acquisition of two long range (LR1) product tankers with a facility of US$32 million from Watson Farley & Williams (“WFW”)-advised CIT Maritime Finance.
The US$32m senior secured credit facility was made available to two Norstar companies to assist with the financing of two 2006-built LR product tankers, the ‘Norstar Integrity’ and ‘Norstar Intrepid’.
Norstar is a fully integrated shipping company carrying out all aspects of ship owning, investment, chartering, technical management, crewing and finance. With the addition of the latest two vessels, its total managed fleet numbers 19 chemical and product tankers.
CIT Maritime Finance specialises in the offer of senior secured loans, sale-leasebacks and bareboat charters to owners and operators of oceangoing cargo vessels, including tankers, bulk carriers, container ships, car carriers and offshore vessels and drilling rigs. It is a division of CIT Group, Inc. (NYSE: CIT), a U.S. financial holding company with more than $65 billion in assets. It provides financing, leasing and advisory services principally to middle market companies across more than 30 industries primarily in North America, and equipment financing and leasing solutions to the transportation sector. Watson Farley & Williams frequently advises CIT on deals across the wider transportation sector.
A multi-jurisdictional WFW team led by London finance partner Kavita Shah advised CIT Maritime Finance on all aspects of the financing, assisted by London maritime associate Emeline Yew. WFW New York provided advice on the Marshall Islands law aspects of the deal, while the firm’s Singapore office assisted on the Singapore aspects.
Lead partner Kavita Shah commented: “The acquisition of these two vessels will enable Norstar to expand its fleet and in doing so capitalise on evolving market dynamics that place more emphasis on product tankers. We’re very pleased to have worked with CIT on another valuable financing for a notable player in the maritime sector.”