NEW YORK, May 12 /PRNewswire-FirstCall/ -- General Maritime Corporation today announced that it has agreed to acquire two 2002-built double hull Aframax vessels from Euronav NV or its affiliates for an aggregate purchase price of $137 million. The Company expects to take delivery of the two double hull vessels, subject to customary closing conditions, between July and October 2008. General Maritime plans to finance the acquisition through borrowings under its $900 million revolving credit facility and cash from operations.
Peter C. Georgiopoulos, Chairman, Chief Executive Officer and President, commented, "General Maritime has capitalized on an attractive opportunity to grow our double hull fleet in a manner that meets our return criteria, expands our earnings power and strengthens our high quality fleet. Based on Clarkson's 10-year spot Aframax average, we expect this acquisition to provide General Maritime with a mid double-digit return. The acquisition also further improves the age profile of the Company's fully double hull fleet reducing the age of the Aframax fleet by over a year. During a time when we continue to provide shareholders with sizeable dividends, we intend to seek additional opportunities to create shareholder value. In continuing to pursue this important objective, we intend to focus on areas that have served shareholders well through the years."
About General Maritime Corporation
General Maritime Corporation is a provider of international seaborne crude oil transportation services principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. We also currently operate tankers in other regions including the Black Sea and Far East. General Maritime Corporation currently owns and operates a fleet of 21 tankers. After the delivery of the two recently acquired Aframax vessels, General Maritime will own a fleet of 23 tankers - twelve Aframax, and eleven Suezmax tankers with a total carrying capacity of approximately 2.9 million dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: the fulfillment of the closing conditions under the Company's agreement to acquire the two Aframax vessels; increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs);and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2007 and its subsequent reports on Form 8-K. The Company's ability to pay dividends in any period will depend upon factors including applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of the Company's financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary from the amounts currently estimated.
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