13:15 EDT 16 October - Overseas Shipholding (OSG) shares plunge 21% to $4.10 amid investor concern that it’s maxed out its lending facilities and could soon face a liquidity squeeze. Shares have been on the decline since around 2008 amid a rough shipping market.
DebtWire, citing two hedge fund analysts, said late last week that Goldman Sachs (GS) and UBS are shopping around about $100M in OSG’s revolver, looking to create a market for the debt before it needs to refinance early next year. OSG 8.125% coupon bonds due 2018 traded 22 times today, with spreads blowing out 6.03 percentage points. Bonds now trade at half their original price – $51.25 per $100 of face value, down from $66.17 yesterday – now yielding 24.97%.
by Ben Rubin and Patrick McGee, © 2012 Dow Jones Newswires