33 Riverside Avenue | 3rd Floor | Westport, Connecticut 06880

December 31, 2015 Westport – Ridgebury Crude Tankers (the Issuer in March 2014 of a $210 million Senior Secured Bond) today announced the purchase of the Ridgebury Alice M from affiliate Ridgebury Aframax Tankers.

  • December 31, 2015 Westport – Ridgebury Crude Tankers (the Issuer in March 2014 of a $210 million Senior Secured Bond) today announced the purchase of the Ridgebury Alice M from affiliate Ridgebury Aframax Tankers.

    The transaction was completed in accordance with the terms approved by Bondholders on June 24, 2015. The purchase price of $22.1 million was 85% of the vessel’s appraised value according to two independent shipbroker valuations. The purchase was funded from Excess Cash (as defined in the Bond Agreement).
    The ship, a 2003 Sumitomo-built Aframax tanker, will continue to trade in the spot market as part of the Teekay Aframax RSA (Revenue Sharing Agreement) pool.
    With this purchase, Ridgebury Crude Tankers has applied Excess Cash during 2015 as follows:
    -$10.0 million for redemption of bonds at par (March)
    – $20.0 million for purchase of the 2003 Aframax tanker Ridgebury Sally B in (June)
    – $10.0 million for redemption of bonds at par (September)
    – $22.1 million for purchase of the 2003 Aframax tanker Ridgebury Alice M (December)
    Due to a combination of (a) the reduction in bond principal to $190 million, (b) the addition to two Aframax vessels to the bond security package, and (c) a general increase in tanker values, bond LTV has been reduced from 70% at issuance in March 2014, to 47% as of December 31, 2015, based on valuations provided by two independent shipbrokers.