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International Seaways, Inc. (NYSE:INSW), a leading global provider of energy transportation services with a market capitalization of $1.69 billion, has expanded its collateral base by pledging two medium-range (MR) tankers as part of an agreement related to its $500 million revolving credit facility (RCF). The move, which took place on Monday, involves two of the company’s subsidiaries, which have now joined as subsidiary guarantors under the credit agreement originally dated May 22, 2022.
The subsidiary guarantors have pledged one MR tanker each, and these vessels are intended as Substitution Vessels, replacing a collateral vessel that was sold earlier in the first quarter of 2025. The sale of the previous vessel had been publicly announced. The joinder agreement, signed on March 21, 2025, modifies the existing credit terms by incorporating these additional assets into the pool of collateral that secures the borrowing under the RCF. According to InvestingPro data, the company maintains a healthy current ratio of 2.87, indicating strong ability to meet its short-term obligations.
This strategic decision aligns with International Seaways’ ongoing financial management practices, aimed at maintaining a robust balance sheet and liquidity position. The company’s subsidiaries’ commitment to the credit facility underscores the integrated operational approach within the corporate structure. InvestingPro analysis shows the company maintains a "GREAT" financial health score, with an impressive dividend yield of 15.23% and strong EBITDA of $532.23 million for the last twelve months.
International Seaways, headquartered in New York, operates a fleet of vessels that includes VLCCs, Suezmaxes, Aframaxes/LR2s, Panamaxes/LR1s, and MR tankers, serving the international oil industry. It is a major player in the maritime transportation sector, specializing in the carriage of crude oil and petroleum products. With annual revenue of $951.61 million and total debt of $711.74 million, the company appears undervalued according to InvestingPro’s Fair Value analysis. For deeper insights into INSW’s valuation and comprehensive financial metrics, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The details of the joinder agreement are outlined in a Form 8-K filed with the Securities and Exchange Commission, which provides transparency into the company’s financial arrangements. The agreement is part of the company’s broader financial strategy and reflects its commitment to prudent financial stewardship.
Investors and stakeholders in the maritime transportation industry may view this development as a reinforcement of International Seaways’ dedication to maintaining a strong financial framework, which is critical in the volatile shipping market. The information regarding this transaction is based on a press release statement.
In other recent news, International Seaways has announced changes to executive compensation, with adjustments retroactively effective from January 1, 2025. The Senior Vice President and Chief Financial Officer, Jeffrey Pribor, will see his annual base salary increased to $625,000, while James D. Small, the Senior Vice President, will have his salary raised to $565,000. Additionally, the company has terminated its Retiree Health and Welfare Plan, with all deferred amounts to be distributed within 12 to 24 months. This decision was made by the Board of Directors and aligns with Treasury Regulation requirements.
Stifel analysts have adjusted their price target for International Seaways to $38.00, down from $42.00, but maintained a Hold rating on the stock. They noted that the company has delivered a satisfactory quarter and is expected to continue generating profitability and free cash flow. Meanwhile, shares of International Seaways rose 6.4% following the US government’s blacklisting of China’s Cosco Shipping Holdings Co., which has increased scrutiny on the marine transport sector. These developments are part of the company’s ongoing efforts to adapt to changes in the industry.
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