Paulson & Co. Acquires 19.35% Stake in Overseas Shipholding

Paulson & Co. Inc., a hedge fund managed by billionaire John Paulson acquired 61,384,234 shares or 19.35% stake in Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) based on its 13G filing with the Securities and Exchange Commission (SEC).

Investment details

The filing indicated that the stake of Paulson & Co. Inc in Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) consist of 56,425,082 shares of Class A common stock, and 4,959,152 shares of common stock, issuable upon exercise of certain Class A warrants.

According to the hedge fund, it can only exercise the warrants with the consent of Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) and is subject to certain restrictions under the organizational documents of the company.

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About Overseas Shipholding

Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) is a tanker company focused on transporting crude oil and petroleum products. Its vessel operations are classified into three business and market segments including crude oil, refined petroleum products and the United States Flag.

The company’s international crude oil fleet is composed of VLCC (Very Large Crude Carriers), Aframax and Panamax. It has a fleet of four Q-Flex LNG carriers that are highly-sophisticated and long-term charters. Each of its LNG vessels can transport 216,000 cubic meters of LNG.

Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) is one of the largest owners and operators of Jones Act vessels in the United States.  It is trading in all four coast-wise markets—intra-U.S. Gulf, U.S. Gulf to the West Coast, U.S. Gulf to the East Coast and the Alaska North Slope. Its U.S. Flag fleet consist handy size product carriers and articulated tug barges.

Last year, Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ) generated $763.3 million in TCE revenue and recorded $20.94 losses per share. The company has 89 operating vessels, one newly-built, and it has 2,860 employees.

Paulson & Co. investment expertise

Meanwhile, Paulson & Co. was established by Mr. Paulson in 1994. It is expert in event-driven arbitrage strategies including merger arbitrage, bankruptcy reorganizations, distressed credit, structured credit, recapitalizations, restructurings, and other corporate events.

Paulson & Co aims to preserve capital and generate above average returns over the long-term. The hedge fund operates as a partnership composed of Mr. Paulson and other partners of the firm.

As of July 1, 2014, Paulson & Co. has $22.8 billion assets under management (AUM) and employs 125 employees in Hong Kong, London and New York.