Aker Phila. expands loan for ship contract

Aker Philadelphia Shipyard said it has expanded its loan agreement with Caterpillar Financial Services Corp.

Under the deal, valued at $560 million, Caterpillar will finance construction of the remaining eight tanker cargo ships scheduled to be built by 2011 under a 2005 12-ship agreement with Overseas Shipholding Group Inc., of New York.

The first four OSG vessels have been delivered and three of the remaining ships are in various stages of construction at the yard, which occupies part of the former Philadelphia Naval Shipyard in South Philadelphia.

"This new agreement with Cat Finance provides a level of financial flexibility which is critical to the shipyard," said Jeff Theisen, the yard's chief financial officer.

   - Henry J. Holcomb