funds to finance further expansion of its fleet.

The company, which owns and operates a fleet of oil tankers, recently successfully completed a public offering which raised $68 million for fleet expansion.

Now L&OF has entered into an agreement in principle with The Chase Manhattan Bank, N.A., which has agreed to lend the company up to $50 million additional funds.

A maximum of $50 million, less possible borrowings for other tanker acquisitions or upgrades, or for corporate purposes, will be lent to the company.

The $50 million loan is intended to partially finance the additional instalments of the purchase price for the London Glory , a double hull Suezmax tanker.

L&OF and Chase have negotiated conditions for the loan. Borrowings of up to $10 million, minus any borrowings for general corporate purposes, may be made partially to finance the purchase and upgrade of one or two additional tankers.

Borrowings of up to $5 million may be made for general corporate purposes, with borrowings in excess of $1 million subject to Chase's reasonable approval.

The company is not allowed to use earnings from the existing fleet to pay for the expansion of the fleet.

The term loan is repayable over eight years in semi-annual instalments, with the amount of the instalments to vary with the earnings of the vessels securing the loan.