Nordic American Tankers Ltd. (NYSE:NAT) has created a new offshore supply vessel company, Nordic American Offshore Ltd. that has

Nordic American Tankers Ltd. (NYSE:NAT) has created a new offshore supply
vessel company, Nordic American Offshore Ltd. that has completed a $250m
private placement. It will seek listing on the NYSE.

HAMILTON, Bermuda, Nov. 27, 2013 (GLOBE NEWSWIRE) -- In a press release
November 1 2013, the investor market was informed that NAT was coordinating
the establishment of Nordic American Offshore Ltd. ("NAO"). NAO, an offshore
supply ship company, has now been established and NAT is its largest
shareholder (26%) with an investment of $65 mill.

NAO has agreed to buy six platform supply vessels (PSVs) from the highly
reputable Ulstein engineering and shipbuilding group of Norway that holds 4%
of NAO. The ships (2012 and 2013 built) are operating already and are expected
to be taken over in December 2013. NAO has an option for a 7^th vessel on the
same terms as for the 6 units.

A PSV is a part of the logistical chain in the offshore oil exploration
business, transporting stores, provisions and equipment to offshore oil
installations in such places as the North Sea, the US Gulf of Mexico, off the
coast of Brazil and in other locations where there are offshore oil
activities. Typically, a PSV is about 4,000 deadweight tons (dwt), i.e. much
smaller than a suezmax tanker of about 150,000 dwt.

Nordic American Offshore has now completed a $250 million equity private
placement. The transaction was upsized from $230 million to accommodate high
demand. NAO will use the proceeds from the offering to finance the purchase of
the six PSVs. More than 80% of the acquisition costs are expected to be
financed with equity.

The objective of the NAT investment in NAO is over time to produce higher
dividend for shareholders of NAT than otherwise would have been the case. Like
Nordic American Tankers, NAO will pursue a strategy of accretive growth based
on a conservative financial strategy of high equity capitalization and a full
dividend pay-out model. The new company will have existing time charter
contracts in place for several of the vessels and spot charters for the
remainder. NAO can be expected to operate on a cash break-even basis that is
highly competitive within the industry.Cost synergies are expected to be
achieved both for NAT and NAO. The suezmax strategy for NAT will remain firmly
in place.

The NAO share is expected to begin trading in the Norwegian OTC (Over The
Counter) market shortly. Later the OTC listing in Oslo is expected to cease
concurrently with the planned listing of NAO on the New York Stock Exchange,
which we expect will take place during the first quarter of 2014.

"The private placement in Nordic American Offshore received strong interest
from investors acquainted with the NAT strategy and from investors familiar
with the positive outlook for the offshore supply market,'' saidNAT Chairman
and CEO Herbjørn Hansson. "We have significant expertise in the offshore
sector, and by using the NAT strategy and customer relationships, we think NAO
will be able to grow and establish itself as a leading player in the market.
It is important to stress that NAT will be operated as in the past." 


Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intend," "estimate," "forecast," "project,"
"plan," "potential," "will," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. We undertake no
obligation to update any forward-looking statement, whether as a result of new
information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes in demand
in the tanker market, as a result of changes in OPEC's petroleum production
levels and world wide oil consumption and storage, changes in our operating
expenses, including bunker prices, drydocking and insurance costs, the market
for our vessels, availability of financing and refinancing, changes in
governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes
due to accidents or political events, vessels breakdowns and instances of
off-hires and other important factors described from time to time in the
reports filed by the Company with the Securities and Exchange Commission,
including the prospectus and related prospectus supplement, our Annual Report
on Form 20-F, and our reports on Form 6-K.

Scandic American Shipping Ltd
Manager for:
Nordic American Offshore Ltd.
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00

Jacob Ellefsen,
Manager, Investor Relations and Research, Monaco
Nordic American Offshore Ltd.
Tel: + 377 93 25 89 07 or + 33678 631959

Rolf Amundsen, Advisor, Norway
Nordic American Offshore Ltd.
Tel: +1 800 601 9079 or + 47 908 26906

Turid M. Sørensen, CFO, Norway
Nordic American Offshore Ltd.
Tel: +47 33 42 73 00 or +47 90 57 29 27

Press release (PDF):

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