U.S. Shipping Partners L.P. (NYSE: USS), announced that it has closed on a $500 million joint venture financing with affiliates of The Blackstone Group and other investors to construct new deep water petroleum tankers for the domestic energy market. U.S. Shipping Partners provided junior equity and affiliates of The Blackstone Group and other investors provided senior equity and debt.

In a series of simultaneous, related transactions, U.S. Shipping Partners raised approximately $527.5 million in new senior debt, senior notes and equity to refinance existing debt and fund its capital program, including providing funds for the construction of previously ordered articulated tug barges and for U.S. Shipping Partners' investment in the joint venture. Sterling Investment Partners, a leading investor in U.S. Shipping Partners and in its general partner, assisted U.S. Shipping Partners in negotiating and structuring the joint venture and financing transactions, provided an equity commitment to support U.S. Shipping Partners' financings, and co-invested in U.S. Shipping Partners' equity private placement.