Exhibit 99.1
GENERAL MARITIME CORPORATION
CONTACT:
Jeffrey D. Pribor
Chief Financial Officer
General Maritime Corporation
(212) 763-5680
GENERAL MARITIME CORPORATION
ANNOUNCES CASH TENDER OFFER AND CONSENT SOLICITATION
FOR ITS OUTSTANDING 10% SENIOR NOTES DUE 2013
New York, NY - December 15, 2005 - General Maritime Corporation (NYSE: GMR)
announced today that it has commenced an offer to purchase for cash any and all
of its outstanding 10% Senior Notes due 2013 (the "Notes"). The aggregate
principal amount of the Notes outstanding is $226,480,000. The Company is also
soliciting consents from the holders of the Notes to approve certain proposed
amendments to the Indenture, dated as of March 20, 2003 (the "Indenture"), under
which the Notes were issued, to eliminate substantially all of the restrictive
covenants and the related default provisions in the Indenture, and the execution
of a supplemental indenture to amend the Indenture accordingly. The proposed
amendments would eliminate restrictions related to the Company's ability to pay
dividends or repurchase stock and other restrictions detailed in the Offer to
Purchase for Cash and Solicitation of Consents, dated December 15, 2005, and
related documents.
Holders who validly tender Notes and deliver consents prior to 5:00 p.m., New
York City time, on December 29, 2005, unless extended (the "Consent Time"), will
be eligible to receive the Total Purchase Price (the "Total Purchase Price")
which includes a consent payment of $30.00 per $1,000.00 principal amount of
Notes (the "Consent Payment"). Holders who validly tender Notes after the
Consent Time but prior to 5:00 p.m., New York City time, on January 17, 2006,
unless extended (the "Expiration Time"), will be eligible to receive the
Purchase Price, which is equal to the Total Purchase Price less the Consent
Payment. The offer is conditioned upon, among other things, the Company
obtaining the requisite consents from holders of the Notes to approve the
amendments to the Indenture and the execution of a supplemental indenture, the
Company having borrowed or being able to borrow funds sufficient to allow it to
pay for Notes tendered and the satisfaction of certain other conditions, any of
which may be waived by the Company.
The Total Purchase Price will be determined by reference to a fixed spread of 50
basis points or 0.50% over the yield to maturity based on the bid side price of
the U.S. Treasury 3.375% Note due February 15, 2008 (the "Reference Treasury
Yield") as measured at 2:00 p.m., New York City time, two business days prior to
the Consent Time. In addition, tendering holders will receive accrued and unpaid
interest up to, but not including, the applicable payment date.
Assuming a payment date of December 30, 2005, and the Reference Treasury Yield
as of 2:00 p.m., New York City time, on December 13, 2005, the Total Purchase
Price would be $1,149.02 per principal amount of $1,000.00 which includes the
$30.00 Consent Payment.
Information regarding the pricing, tender and delivery procedures and conditions
of the tender offer and consent solicitation is contained in the Offer to
Purchase for Cash and Solicitation of Consents, dated December 15, 2005, and
related documents. Copies of these documents can be obtained by contacting D.F.
King & Co., Inc., the information agent, at (800) 269-5550. Goldman, Sachs & Co.
is the exclusive dealer manager and solicitation agent. Additional information
concerning the terms and conditions of the tender offer and consent solicitation
may be obtained by contacting Goldman, Sachs & Co., toll free at (800) 828-3182
or collect at (212) 357-7867.
About General Maritime Corporation
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General Maritime Corporation is a provider of international seaborne crude oil
transportation services principally within the Atlantic basin which includes
ports in the Caribbean, South and Central America, the United States, West
Africa, the Mediterranean, Europe and the North Sea. The Company also currently
operate tankers in other regions including the Black Sea and Far East. General
Maritime Corporation currently owns and operates a fleet of 38 tankers - 22
Aframax, 12 Suezmax tankers and four Suezmax newbuilding contracts with a
carrying capacity of approximately 4.75 million dwt. Following the completion of
the Company's recent vessel sales, General Maritime will own and operate a fleet
of 30 tankers - 19 Aframax, 7 Suezmax tankers, and four Suezmax newbuildings.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995
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This press release contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current expectations and
observations. Included among the factors that, in the Company's view, could
cause actual results to differ materially from the forward-looking statements
contained in this press release are the following: the consents and tenders
sought may not be obtained and the offer is subject to termination or amendment
as provided in the Offer to Purchase for Cash and Solicitation of Consents dated
December 15, 2005; and other factors listed from time to time in the Company's
filings with the Securities and Exchange Commission, including, without
limitation, its Annual Report on Form 10-K for the year ended December 31, 2004
and its subsequent reports on Form 10-Q and Form 8-K. The tender offer and
consent solicitation are subject to certain conditions, and present certain
risks for holders who tender and consent, as set forth more fully in the Offer
to Purchase for Cash and Solicitation of Consents and related documents. Those
documents contain important information, and holders should read them carefully
before making any decision.
This press release does not constitute an offer to purchase, a solicitation of
an offer to sell, or a solicitation of consents with respect to any securities
nor is this announcement an offer or solicitation of an offer to sell new
securities. The tender offer and consent solicitation are made solely pursuant
to the Offer to Purchase for Cash and Solicitation of Consents, which the
Company has distributed to holders of the Notes. In any jurisdiction where the
laws or regulations require tender offers or solicitations of consents to be
made by a licensed broker or dealer, the tender offer and solicitation of
consents will be deemed to be made on behalf of General Maritime Corporation by
the Dealer Manager or one or more registered brokers or dealers licensed under
the laws of such jurisdiction.