Shippingtelegraph: International Seaways clinches financing deal for six LR1 newbuilds

New York-listed tanker company International Seaways has secured on August 20 financing for use in respect of partly financing of six LR1 tanker newbuildings currently under construction at K Shipbuilding Co., Ltd. in Korea.

In a securities and exchange commission (SEC) filing on August 26, the tanker shipowner said the credit facility consists of a 12-year term loan facility of up to $239.7m and a revolving credit facility of up to $91.9m.

The company has contracts to build six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels in Korea with K Shipbuilding Co, Ltd at a total price of approximately $359m.

“As of June 30, 2025, the company has approximately $300 million in remaining construction commitments, which are expected to be paid through a combination of long-term financing and available liquidity,” International Seaways said in its financial report for the second quarter 2025.

The vessels are contracted to be delivered beginning in the third quarter of 2025 through the third quarter of 2026.

These vessels are expected to deliver into the company’s niche Panamax International Pool.

International Seaways owns and operates a fleet of 79 vessels, including 11 VLCCs, 13 suezmaxes, five aframaxes/LR2s, 12 LR1s (including six newbuildings), and 38 MR tankers.

Jeff Pribor, the company’s CFO stated, “During the quarter, we sold two older vessels, realizing annualized returns of nearly 50% since acquiring them in 2021. Over the past year, we have returned 75% or more of our adjusted net income to shareholders through dividends. We also secured attractive financing for our LR1 newbuildings that begin delivering in the third quarter.”