UPDATE 1-General Maritime sets special cash dividend of $15/shr

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Feb 21 (Reuters) - Oil tanker operator General Maritime Corp. (GMR.N) declared a one-time special cash dividend of $15 per share out of its credit facility even as its fourth-quarter earnings fell due to lower spot charter rates and a smaller fleet.

The company's board also revised its quarterly dividend policy, targeting a regular quarterly dividend of 50 cents a share per quarter, starting with the first quarter of 2007, the company said in a statement.

The special dividend is out of its credit facility, which the company amended to increase the total commitment to $900 million from $800 million earlier.

The company said available funds under the credit facility of about $400 million after the distribution of the special dividend provides it with the potential to acquire assets in excess of $1 billion in market value.

The special dividend will be paid on or about March 23 to shareholders of record as of March 9.

The company posted earnings of 71 cents a share for the latest fourth quarter, compared with $2.78 per share in the year-ago period.

Analysts on average were expecting earnings of 72 cents a share, before special items, according to Reuters Estimates.

In late electronic trade, shares of the company were up more than 10 percent at $43.91, after closing at $39.72 on the New York Stock Exchange. (Reporting by Anup Roy in Bangalore)