AKPS-Crowley Joint Venture Secures Financing for Jones Act Tankers

Keel laying of the first of four new product tankers at Aker Philadelphia Shipyard, October 24, 2014. Photo courtesy Crowley
Keel laying of the first of four new product tankers at Aker Philadelphia Shipyard, October 24, 2014. Photo courtesy Crowley

Aker Philadelphia Shipyard ASA says that its joint venture with Crowley Maritime Corp. has secured a US $325 million credit facility to help pay for a quartet of newbuild product tankers to ply the Jones Act market.

Aker says that the firm USD 325 million senior secured term loan facility was underwritten by a group of banks and financial institutions and that the facility will be used for post-delivery financing of the four product tankers to be included in the AKPS-Crowley joint venture.

The four 330,000-barrel, Jones Act-qualifying tankers are being built at Aker Philadelphia Shipyard, a wholly-owned subsidiary of AKPS. The 50,000 dwt product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design incorporating numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future. When completed, the vessel will be 600 feet long and be capable of carrying crude oil or refined petroleum products. Deliveries of the new tankers are expected in 2015 and 2016.