Simpson Thacher represented the underwriters, led by UBS Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated and co-managed by Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DnB NOR Markets, Inc., J.P. Morgan Securities Inc. and Dahlman Rose & Company, LLC, in the initial public offering of 16,000,000 shares of common stock by Double Hull Tankers, Inc., a subsidiary of the Overseas Shipholding Group.
The initial public offering closed on October 18, 2005 and was part of a larger spin off transaction in which the Overseas Shipholding Group sold seven oil tankers to Double Hull Tankers for $412.6 million in cash and $168.0 million in common stock. The initial public offering raised $180.5 million for Double Hull Tankers, which was used to fund a portion of the purchase price for the vessels. In connection with the offering and the vessel sales, Overseas Shipholding Group agreed to charter the vessels back from Double Hull Tankers under long-term fixed rate time charters.
The Simpson Thacher team who worked on the offering included Gary Sellers, Adam Smith, Dana Cicerani, Rhett Van Syoc, as well as Jonathan Cantor (Tax) and Mark Lab and Sean Cotton (Blue Sky). The offering was the third initial public offering of a shipping company completed by the team since the first quarter of 2005.