form8k12508.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
____________January
23, 2008_______________
Date
of
Report (Date of Earliest Event Reported)
Commission
file number – 2-63322
INTERNATIONAL
SHIPHOLDING CORPORATION
(Exact
name of registrant as specified in its charter)
Delaware
36-2989662
(State
or other jurisdiction
of (I.R.S.
Employer Identification Number)
incorporation
or
organization)
11
North Water Street, Suite
18290 Mobile,
Alabama 36602
(Address
of principal
executive
offices) (Zip Code)
(251)
243-9100
(Registrant’s
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425 under the Securities
Act
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
Item
1.01 Entry
into a Material Definitive Agreement
The
information set forth in Item 2.03
below is incorporated herein by reference.
Item
2.03 Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant
On
January 23, 2008, International Shipholding Corporation (the “Company”) entered
into a Facility Agreement by and among (1) East Gulf Shipholding, Inc. (“EGS”),
a wholly-owned subsidiary of the Company, as borrower, (2) the Company, as
guarantor, (3) the banks and financial institutions party thereto (the
“Lenders”), as lenders, (4) DnB NOR Bank ASA, as facility agent, and (5)
Deutsche Schiffsbank Aktiengesellschaft, as security trustee. Under
this Facility Agreement, the Lenders agreed to provide EGS with a term loan
of
up to Six Billion Two Hundred Eighty Million Yen (¥6,280,000,000), or
approximately $59 million at current exchange rates. The loan will be
used to pay off the remaining balance on the construction of one 6400 CEU
Newbuilding Pure Car/Truck Carrier currently scheduled for delivery in early
2010. The Facility Agreement provides for two interim advances to be
made by the Lenders to EGS coinciding with certain construction milestones
of
the Vessel, as well as a final advance to be made by the Lenders to EGS
coinciding with the delivery of the Vessel to EGS.
The
loan is secured by the Vessel, its
earnings and insurances, and is guaranteed by the company. The loan,
originally entered into under a floating Libor to Yen interest rate, has been
swapped to a Yen fixed rate facility of 2.065% plus an applicable margin of
0.90% (which margin may be adjusted upwards or downwards as provided in the
Facility Agreement).
The
Facility Agreement contains
affirmative and negative covenants that, among other things, require the Company
to maintain a specified tangible net worth, leverage ratio, interest coverage
ratio and working capital. The Facility Agreement also contains
customary events of default. Upon the occurrence of an event of
default that remains uncured after any applicable cure period, EGS may be
required to make immediate repayment of all indebtedness to the Lenders and
the
Lenders would be entitled to pursue other remedies against EGS, the Vessel
and
the Company under its guaranty.
Item
8.01 Other
Events
On
January 25, 2008, International
Shipholding Corporation issued a press release announcing that it’s Board of
Directors has authorized open market repurchase of up to 1,000,000 shares of
the
Company’s common stock. A copy of the press release is furnished as Exhibit 99.1
and incorporated herein by reference.
Item
9.01 Financial
Statements and Exhibits.
(c) Exhibits
Exhibit
Number Document
99.1 Press
Release dated January 25, 2008
SIGNATURES
Pursuant
to the requirements of the
Securities and Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly
authorized.
INTERNATIONAL
SHIPHOLDING CORPORATION
/s/
Manuel G. Estrada
_____________________________________________
Manuel
G.
Estrada
Vice
President and Chief Financial Officer
Date
____January 25, 2008