Overseas Shipholding Group Reduces Outstanding Debt

Under bareboat arrangements with new owner of seven tankers operated by OSG

Overseas Shipholding Group, Inc. (“OSG”) announced today that it has prepaid deferred payment obligations (“DPO”) and entered into new bareboat charter agreements in respect of the seven vessels comprising OSG’s Veteran Class products tanker fleet, all of which are now indirectly owned by a private fund (the “MP Fund”) managed by Maritime Partners, LLC. Prior to their recent acquisition by a Jones Act qualified subsidiary of the MP Fund, these seven vessels were previously owned indirectly by AMSC ASA (“AMSC”). The transaction presented OSG with an opportunity to reduce its overall outstanding debt while also simplifying the underlying arrangements that govern the relationship between OSG and the new vessel owners.

OSG prepaid all of its remaining outstanding DPO, which date back to an agreement made with AMSC in 2005, at a 14% discount to the aggregate outstanding DPO liability of $6.5mm. Other material commercial terms of the revised bareboat agreements remain unchanged from the original agreements. Each of the Veteran Class products tankers has been leased by OSG and operated by its wholly owned subsidiary, OSG Ship Management, since its delivery from the Aker Philadelphia Shipyard.

Commenting on the transaction, Sam Norton, OSG’s President and CEO said, “Opportunistic repayment of outstanding debt has been one of the principal targets that OSG has set for the productive use of the surplus cashflow being generated by our vessel operations. We are more than pleased that in our first interaction with the new owners of our leased Veteran Class products tankers, we were able to come to an agreement the effect of which is to simplify the balance sheet of both parties while providing a positive income statement impact for OSG’s 4th quarter results. With the agreed prepayment of DPO liabilities linked to the Overseas Houston and Overseas Long Beach, OSG will realize a gain of $911,000 and will see its interest expense going forward reduced by nearly $1.7mm as compared with the original contractual payment structure of the DPOs.”

Mr. Norton added, “We remain optimistic that anticipated near term strength in our core businesses will continue to produce cashflows in excess of scheduled debt service and capital expenditures, providing the flexibility to take advantage of future business and debt reduction opportunities. We are looking forward to a positive relationship with Maritime Partners.”

The Veteran Class products tanker fleet includes six MR products tankers, each with charter terms ending in December of 2026 unless otherwise extended by OSG, and one shuttle tanker, the Overseas Tampa, with a term scheduled to expire in June of 2025 unless otherwise extended.

About Overseas Shipholding Group, Inc

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.

Headquartered in Tampa, Florida, OSG is committed to setting high standards of excellence for its quality, safety, and environmental programs and is recognized as one of the world’s most customer-focused marine transportation companies.

Contacts

Susan Allan, Overseas Shipholding Group, Inc.

(813) 209-0620

sallan@osg.com

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