OSG to sweeten offer for OSG America

Tanker giant Overseas Shipholding Group, Inc. (NYSE: OSG) today announced that it has increased the price per unit that it will offer to pay for all of the outstanding publicly held common units of OSG America L.P. (NYSE: OSP) from $8.00 to $10.25 per unit in cash. This is a 28% increase over the original proposed offer price of $8.00 per unit and about 44% over the closing price of the units on July 29, 2009, the last full trading day before the first public announcement of OSG's proposed offer.

OSG says the decision to sweeten the offer price follows extensive discussions between OSG and a committee of independent members of the Board of Directors of OSG America LLC appointed to review OSG's offer. The committee has informed OSG that OSG's increased price of $10.25 per unit is fair to common unitholders, from a financial point of view, as of September 24, 2009.

The tender offer is expected to commence in October, after OSG has prepared all necessary documentation. OSG and its affiliates currently own approximately 53.3% of the outstanding common units, 100% of the outstanding subordinated units and a 2% general partner interest, representing in the aggregate approximately 77.1% of the outstanding equity of OSG America.