Sustains up to 500 jobs for San Diego shipyard during
Commitment contingent upon loan guarantee from U.S.
Plymouth Meeting, PA, October 22, 2012 - An affiliate of
American Petroleum Tankers Parent LLC ("APT"), a company
majority owned by funds managed by Blackstone on behalf
of its investors, announced its commitment to build two
new state-of-the-art tanker vessels at the National Steel
and Shipbuilding Company (NASSCO) shipyard in San Diego.
This commitment is contingent upon approval of a $340
million Title XI loan guarantee from the U.S. Department
of Transportation's Maritime Administration ("MarAd")
that would be used to refinance APT's existing five
tankers. Should construction of the vessels proceed, they
will be the first new product tankers to be ordered in
the U.S. in two years.
The government-guaranteed loan program, Title XI, has
historically provided between 80 to 87 percent of new
build construction costs to support the U.S. shipbuilding
industry. Construction of the new product tankers
will help support the future of NASSCO as a key asset in
the U.S. industrial base for military and commercial
shipbuilding, will sustain up to 500 jobs during
construction, and create some 84 long-term seagoing jobs
when the vessels become operational.
Rob Kurz, Chief Executive Officer of APT said, "This is a
demonstration of our long-term commitment to the U.S.
maritime industry and to bolstering job creation in the
U.S. It is a win-win for the Maritime
Administration and our Company, and we are committed to
working with the Maritime Administration and the
Department of Transportation to close this financing and
support our nation's important maritime industry."
Sean Klimczak, Managing Director of Blackstone said, "We
have worked closely with MarAd over the past two years to
present a loan application that would be the safest loan
in Title XI history and that has met every MarAd program
requirement. This loan is supported by five modern,
state-of-the-art tankers, valued in excess of two times
the amount of the loan requested by APT. We are
looking forward to receiving MarAd's approval of the loan
so that we may begin construction of these two new
vessels without further delay."
APT was formed in 2006 to construct and operate product
tankers in the domestic petroleum trades. APT's
current fleet consists of five double-hulled product
tankers which were delivered by NASSCO) in 2009 and 2010.
About American Petroleum Tankers LLC:
American Petroleum Tankers Parent LLC and its
subsidiaries (APT) is a U.S. based provider of Jones Act
marine transportation services for refined petroleum
products, crude oil, and chemicals in the U.S. domestic
"coastwise" trade. The company's fleet consists of five
modern, double-hulled product tankers which were
delivered from the National Steel and Shipbuilding
Company (NASSCO) in 2009 and 2010.
Blackstone (NYSE: BX) is one of the world's leading
investment and advisory firms and is an experienced and
active investor in the energy and natural resources
sector. Funds managed by Blackstone have
invested/committed approximately $6 billion in the sector
to date across four continents. Blackstone seeks to
create positive economic impact and long-term value for
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