ITCL - California Petroleum Transport Corporation Announces Early Termination of Charters, Full Redemption of Outstanding Bonds, and Sale of Vessels Pursuant to Bareboat Charter

California Petroleum Transport Corporation (the "Company"), an affiliate of CalPetro Tankers (Bahamas I) Limited ("CPT I"), CalPetro Tankers (Bahamas II) Limited ("CPT II"), CalPetro Tankers (IOM) Limited ("CPT IOM" and together with CPT I and CPT II, the "Owners"), and the Owners announced today the closing of the transactions under the Early Termination Agreement entered into between the Company, the Owners and Chevron Transport Corporation Ltd. (the "Charterer").  Under the Early Termination Agreement, on October 1, 2014, (1) the existing bareboat charters (the "Bareboat Charters") for the vessels Altair Voyager, Cygnus Voyager and Sirius Voyager (together, the "Vessels"), which were owned by the Owners, were terminated as of October 1, 2014;  (2) the charter hire payments paid in connection with the Early Termination Agreement were used to redeem the remaining outstanding 8.52% First Preferred Mortgage Notes due 2015 (the "Notes") pursuant to the terms of the indenture governing the Notes; and (3) the Vessels were sold to the Charterer pursuant to the provisions of the bareboat charters for the Vessels.

Each of the Owners is a wholly-owned subsidiary of Independent Tankers Corporation Limited ("ITCL"). The redemption of the Notes was made in accordance with the provisions of the indenture governing the Notes, pursuant to a Notice of Full Optional Redemption provided to holders of the Notes on September 26, 2014. 

The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
October 2, 2014

Questions should be directed to:
Aage K. Korff Østern, Vice President Finance, Frontline Management AS
+47 23 11 40 00