OMI CORPORATION CONFIRMS THAT IT CONSIDERED EQUITY OFFERING
Contact: Fredric S. London
OMI Corporation
(203) 602-6789
STAMFORD, CONNECTICUT, October 13, 2000 - OMI Corporation (NYSE:OMM) today
announced that market reports that it was seeking to raise equity in a private
placement were correct but that it had ceased the effort.
Craig H. Stevenson, Jr., Chairman, Chief Executive Officer and President of OMI
commented that "the Company identified certain assets that were attractively
priced and sought a fast private offering as a means to partially finance
acquisition of the assets. Due to stock market conditions the equity could not
be raised at a price which the Company believed justified making the
acquisitions. It and its advisors therefore determined to terminate the effort.
The previously announced acquisition of the new Suezmax and the letter of intent
for construction of one 47,000 dwt product tanker (and two options) are not
affected by the decision."
The Company also confirmed that its previously announced bank refinancing closed
as scheduled on October 12.
OMI Corporation is a major international tanker owner and operator. Its fleet
currently comprises 21 vessels, consisting of five wholly-owned Suezmaxes, one
bareboat chartered Suezmax, two time-chartered Suezmaxes, eight handysize
product carriers, one handymax product carrier, three Panamax dwt product
carriers which carry crude oil and one ultra large crude tanker. One new
handymax product carrier is scheduled to be delivered to the Company in 2000.
One additional new Suezmax is to be delivered to the Company in November 2000 or
January 2001 and the Company has signed a letter of intent for the construction
of one handymax product carrier for delivery in February 2002 and options for
two additional handymax product carriers which would be delivered in the first
half of 2003.
