International Seaways, Inc. · NYSE:INSW
International Seaways — Debt Investor Presentation (May 2018)
19 slides from International Seaways's debt investor presentation, May 2, 2018
Slide 1: Amendment Presentation May 2018
International Seaways, Inc. 1 International Seaways, Inc. Amendment Presentation May 2018
Slide 2: Table of Contents
International Seaways, Inc. Table of Contents 2 Amendment Overview 3 Transaction Overview 8 Appendix 17
Slide 3: Amendment Overview
Amendment Overview International Seaways, Inc. DZ
Slide 4: Executive Summary
International Seaways, Inc. Executive Summary 4 ; International Seaways, Inc. (“INSW” or the “Company”) is seeking to amend its First Lien Credit Agreement to allow for the acquisition of 6 VLCCs from Euronav in a new Unrestricted Subsidiary wholly owned by the Borrower. The requested Amendment prov
Slide 5: Sources & Uses and Pro Forma Capitalization
International Seaways, Inc. Sources & Uses and Pro Forma Capitalization 5 (1) Includes 100bps TLB amendment fee of $4.8mm. (2) 3/31/18 balance less mandatory amort . on the Term Loan B paid out the 1 st business day of the following quarter. Restricted cash portion includes vessel sale proceeds from
Slide 6: Pro Forma Organizational Structure
International Seaways, Inc. Pro Forma Organizational Structure 6 Note: 100% ownership unless otherwise noted. International Seaways, Inc. (Marshall Islands (“MI”)) (NYSE: INSW) OIN Delaware LLC (Delaware) International Seaways Operating Corporation (MI) Holdings Guarantor Borrower Parent Guarantor O
Slide 7: Transaction Timeline
International Seaways, Inc. Transaction Timeline 7 Date Event May 1 st − Lender Call May 8 th − Amendment Responses Due May 9 th − Closing & Effectiveness Bank Holiday May 2018 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Key Event
Slide 8: Transaction Overview
Transaction Overview International Seaways, Inc. DZ
Slide 9: Vessels to be Acquired
International Seaways, Inc. Vessels to be Acquired Vessels Overview (1) Source: Clarksons . (1) Average age at the time of the deal announcement (2) Purely illustrative, not indicative of company projections or expectations. Analysis assumes 365 operating days for each of t he six vessels, 4 days of
Slide 10: Key Transaction Highlights
International Seaways, Inc. Key Transaction Highlights 5 Investment in 100% Owned Assets Maximizes Control and Value to INSW 3 Important Step in Fleet Modernization 2 Increases Size and Scale 4 Enhances Operating Leverage 6 Significant Enhancement of Tankers International Pool 1 Purchase of Highly E
Slide 11: Purchase of Highly Efficient, Modern Sister Ships at an Attractive Price
International Seaways, Inc. $136 $140 $144 $168 $107 $112 $101 $88 $81 $103 $104 $90 $83 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $ in Millions Purchase of Highly Efficient, Modern Sister Ships at an Attractive Price 11 1 Source: Cl
Slide 12: Increases Size and Scale
International Seaways, Inc. 43 49 Status Quo Pro Forma Increases Size and Scale 12 DWT (Operated Fleet) (1) # of Vessels (Operated Fleet) ( 1) 2 Note: Includes entire operated fleet, not just collateral pool. Excludes six joint venture vessels. (1) Status Quo assumes the sale of Seaways Atalmar , Se
Slide 13: Important Step in Fleet Modernization
International Seaways, Inc. 1.7 years 10.9 years 8.5 years Acquisition of 6 VLCCs Status Quo Pro Forma Important Step in Fleet Modernization 13 Weighted Average Age by DWT of Operated Fleet 3 22% Decrease in Avg. Fleet Age Note: Includes entire operated fleet, not just collateral pool. Excludes six
Slide 14: Enhances Operating Leverage
International Seaways, Inc. Enhances Operating Leverage 14 # of Total Revenue Days (1) 4 Annual Cash Flow Upside ($ in millions) Operated Conventional Fleet Only In an improving rate environment, increased operating leverage drives greater excess cash flow generation and accelerated repayment of Ter
Slide 15: Investment in 100% Owned Assets Maximizes Control and Value to INSW
International Seaways, Inc. $290 $290 $434 $340 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 Current FSO JV Value FSO JV (post-levering) 6 VLCCs Combined Collateral Value Value (in $millions) $110mm FSO Levering Investment in 100% Owned Assets Maximizes Control and Value to INSW 15 5 100% ownership
Slide 16: Significant Enhancement of Tankers International Pool
International Seaways, Inc. 7 13 31 46 Status Quo Pro Forma INSW Other Participants 38 59 16 Largest VLCC Pool in the world providing benefits from enhanced commercial operations, economies of scale and higher vessel utilization Note: Pro forma assumes addition of all VLCCs (including 6 vessels to b
Slide 17: Appendix
Appendix International Seaways, Inc. DZ
Slide 18: Amendments to Enable Transaction Funding
International Seaways, Inc. ▪ Amend Available Amount, Excess Cash Flow and CNI definitions so that they do not grow by amount of FSO JV Debt Dividend ▪ Amend Excess Cash Flow definition so that: ▪ it grows by any dividends from the Acquisition Vessel Entities from proceeds of sales of Acquisition Ve
Slide 19: Acquisition Vessel Entities Debt and Lien Terms
International Seaways, Inc. ▪ No debt at Acquisition Vessel Entities other than the Sinosure Facility ▪ No Liens on the Acquisition Vessels or on equity owned by Acquisition Vessel Entities other than (x) pledge of equity of Acquisition Vessel Purchaser and Ve ssel Owners under the Sinosure facility
International Seaways — Debt Investor Presentation (May 2018) on 6ix