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Dec 24, 2018

Overseas Shipholding Group, Inc. Announces Closing of Term Loan Credit Facility Refinancing

TAMPA, Fla. –
Overseas Shipholding Group, Inc. (NYSE: OSG) (“OSG”) a provider of
energy transportation services for crude oil and petroleum products in
the U.S. Flag markets, today announced that it closed on a five-year
$325 million term loan credit facility with The Prudential Insurance
Company of America and other syndicate lenders (the “Term Loan
Refinancing”). OSG’s subsidiary, Overseas Bulk Ships, Inc. (“OBS”) and
certain of its subsidiaries obtained the new loan facility to refinance
and replace its existing term loan facility with Jefferies Finance LLC,
as administrative agent, and certain other lenders (the “OBS Term
Loan”). The new Term Loan Refinancing bears interest at an annual rate
equal to the prevailing 30-Day LIBOR plus a margin of 500 basis points
and are secured by the issued and outstanding stock of OBS. The
performance of the borrowers’ obligations under the Term Loan
Refinancing are guaranteed by OSG and certain other assets. The Term
Loan Refinancing credit agreement contains customary representations and
warranties and customary affirmative and negative covenants applicable
to the various loan parties and their respective subsidiaries,
including, among other things, restrictions on indebtedness, liens,
investments, mergers, dispositions, prepayment of other indebtedness and
dividends and other distributions. Proceeds of the Term Loan Refinancing
were used to refinance the OBS Term Loan. Upon the closing of the Term
Loan Refinancing, the OBS Term Loan was terminated.

In connection with this refinancing transaction, OSG also amended its
$75 million secured asset-based revolving loan facility with Wells Fargo
Bank, N.A. (the “OBS ABL Facility”) by reducing the maximum credit line
available and extending the term through August 2, 2019. The amendment
also reduced the number of vessels serving as collateral for the OBS ABL
Facility.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded tanker
company providing energy transportation services for crude oil and
petroleum products in the U.S. Flag markets. OSG is a major operator of
tankers and ATBs in the Jones Act industry. OSG’s 21 vessel U.S. Flag
fleet consists of five ATBs, two lightering ATBs, three shuttle tankers,
nine MR tankers, and two non-Jones Act MR tankers that participate in
the U.S. MSP. In addition to the currently operating fleet, OSG has on
order two additional non-Jones Act MR tankers and one Jones Act
compliant barge which are scheduled for delivery in 2019 and 2020
respectively. OSG is committed to setting high standards of excellence
for its quality, safety and environmental programs. OSG is recognized as
one of the world’s most customer-focused marine transportation companies
and is headquartered in Tampa, FL. More information is available at www.osg.com.

Investor Relations & Media Contact:
Susan Allan,
Overseas Shipholding Group, Inc.
(813) 209-0620
sallan@osg.com