Nordic American Tanker Shipping Ltd. announces public offering

In order to fund further acquisitions under planning, Nordic American Tanker Shipping Ltd. today announced an underwritten public offering of 3,000,000 common shares.  The common shares are being offered pursuant to the Company's effective shelf registration statement.  Morgan Stanley is acting as the bookrunning manager for the offering.  The Company expects to close the sale of the common shares on January 13, 2009, subject to customary closing conditions.  The Company has granted the underwriters a 30-day option to purchase up to 450,000 additional shares to cover over-allotments.

The common shares purchased by Morgan Stanley are being offered for resale from time to time in negotiated transactions or otherwise, at market prices on the New York Stock Exchange prevailing at the time of sale, at prices related to such prevailing market prices or otherwise.

The Chairman & CEO of the Company, Herbjorn Hansson commented:

In our view, the present markets offer attractive opportunities to increase the Company's fleet further. Because of the financial turmoil internationally, ship values have been reduced. We believe that our past acquisitions have been accretive, that is, after acquisitions our dividend and earnings per share have been higher than under a scenario where such acquisitions had not taken place.  We announced an agreement to buy a double hull Suezmax tanker earlier this week, which is expected to be financed with funds that were available to the Company before this offering.  Going forward, we expect this offering to strengthen the Company`s equity base and increase the Company's capacity to make further acquisitions. So far in 2009 the spot charter contracts which have been concluded for our Suezmax vessels, have on average been above the average level achieved for the 4th quarter of 2008. As a matter of policy the Company does not predict future spot rates.  

The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission.

Source: American Shipper