JERSEY, Channel Islands, Oct. 13, 2005 (PRIMEZONE) -- Double Hull Tankers, Inc. (NYSE:DHT) announced today that it priced its initial public offering of 16,000,000 shares of common stock at $12.00 per share. The common stock will trade on the New York Stock Exchange under the symbol "DHT".
Net proceeds from the sale, after deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $178.2 million. DHT will use all of these net proceeds, together with borrowings of $236 million under its credit facility (before estimated debt issuance costs of approximately $1.6 million) and 13,999,900 shares of its common stock, to acquire from subsidiaries of Overseas Shipholding Group, Inc. ("OSG") a fleet of seven tankers designed to carry crude oil on both long and short haul routes worldwide. The tankers, three very large crude carriers ("VLCCs") and four Aframaxes, are modern, double hull tankers with an average age of 5.4 years. All of the tankers will be chartered to other subsidiaries of OSG for an initial period of five to six and one-half years.
UBS Investment Bank and Merrill Lynch & Co. are serving as joint book-running managers of the offering.
A subsidiary of OSG has granted the underwriters an option to purchase an additional 2,400,000 shares of common stock of DHT at the initial public offering price, less underwriting discounts and commissions payable by it, to cover over-allotments.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus relating to the offering has been filed with the Securities and Exchange Commission and may be obtained from: UBS Securities LLC, Attn: Prospectus Department, 299 Park Avenue, 25th Floor, New York, NY 10171 or Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080.