American Shipping Company ASA : Contemplating New

Fornebu, 7 February 2017

American Shipping Company. (AMSC)  through its fully owned subsidiary American Tanker Inc ('AMSC' or the 'Company') is contemplating the issuance of a new five-year senior unsecured bond in the Nordic bond market. Ocean Yield ASA and/or its subsidiaries (OCY) have pre-committed a participation of up to 50% of the contemplated bond issue. The net proceeds from the new bond issue are expected to be used towards repaying all of the outstanding principal amount of the Company's USD 216 million senior unsecured bond issue with ISIN NO 001 0699879 (the "Existing Bond"). Subject to completion and settlement of the contemplated new bond issue, AMSC will exercise the call option in the Existing Bond to be redeemed in full at 101.00% of par value plus accrued interest. There is no assurance that the offering will be completed or, if completed, as to the terms on which it is completed.

A portion of the bonds may be offered in the United States to qualified institutional investors (or QIBs) as defined in Rule 144A of the U.S. Securities Act of 1933, as amended (the "Securities Act") concurrently with bonds offered outside of the United States pursuant to Regulation S of the Securities Act.

The bonds have not been and will not be registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or unless pursuant to an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the bonds, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Company has retained Arctic Securities, Clarksons Platou Securities, Pareto Securities and SEB as joint lead managers for the contemplated transaction.

Sparebank 1 Markets has been retained as Co-Manager.

For further information, please contact:

Pål Magnussen (CEO, AMSC) Tel +47 24 13 00 04 Morten Bakke (CFO, AMSC)  Tel: +47 24 13 00 87