The Business Times

Owner of record-setting tanker seeks refinancing

Record rates for Jones Act ships has raised its valuation

Published Thu, Jul 31, 2014 · 10:00 PM
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[NEW YORK] The Jones Act tanker that set records for day rates may now be refinanced, as its private equity owner seeks to profit after an unexpected jump in rates for US-flagged ships that could be reaching a plateau, market sources said.

The American Phoenix has been inspected and valued since late last year by interested parties, including several American banks and the shipping arms of major oil companies, said people familiar with the discussions.

Alterna Capital Partners, the Connecticut-based majority owner of the American Phoenix, is seeking to refinance at a time when the ship's valuation has climbed thanks to record rates for Jones Act tankers because of the shale boom. Ships moving between US ports are required to be Jones Act compliant - US-flagged, US-built and US-crewed - making them three times more expensive than international vessels.

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