American Export Lines $43.1-Million Title XI Approved By MarAd
The Maritime Administration (MarAd) has approved Title XI loan guarantees totaling $43.1 million to aid American Export Lines, Inc. in financing two containerships on order at the Bath (Maine) Iron Works Corporation shipyard, and refinancing two combination container-roll-on / roll-off vessels currently in service. An $84.4-million contract for construction of the new containerships, each 610 feet long and 16,300 deadweight tons, was announced October 29, 1976.
Letter commitments to guarantee obligations under Title XI of the Merchant Marine Act of 1936, as amended, were authorized by the agency for the two new vessels when the construction contract was announced and for the two ro/ro vessels, the Red Jacket and the Young America, last April 12.
Title XI financing has been arranged for the two containerships in the amount of $17,450,000 each. The commitment for the Red Jacket is $4,073,000, and for the Young America, $4,148,000. Proceeds from bonds sold in refinancing the ro/ros will be used as equity in building the containerships at Bath.
The Red Jacket and Young America were built in 1969 and 1970, respectively, at Ingalls Shipbuilding Division, Pascagoula, Miss., and were acquired by AEL in 1970 from Moore-McCormack Lines, Inc. They currently are operated in trade linking U.S. Atlantic ports with the Mediterranean— the same service for which the two containerships on order are intended.
The Title XI loan guarantee program is designed to attract private investment capital to the U.S. maritime industry.
American Export Lines, Inc., a steamship company with headquarters in New York, N.Y., reported in August increased revenues and net earnings equal to 83 cents a share for the first half of 1977.