Genco Shipping & Trading Limited Closes its New Five-Year $460 Million Credit Facility
June 05 2018 - 4:30PM
Genco Shipping & Trading Limited (NYSE:GNK) announced today
that it has closed on a previously announced five-year senior
secured credit facility in an aggregate principal amount of up to
$460 million. Proceeds from the new credit facility were used,
together with cash on hand, to refinance all of the Company’s
existing credit facilities into one facility and pay down the debt
on the oldest seven vessels in Genco’s fleet.
Apostolos Zafolias, Chief Financial Officer,
commented, “We are pleased to have closed on this attractive $460
million facility, which was oversubscribed by approximately 40%.
With this new facility, we have strengthened our position to
capitalize on attractive growth opportunities and have provided
Genco with the ability to pay dividends, while simplifying the
Company’s capital structure. We appreciate the ongoing support of
our banking group, highlighting Genco’s leadership position and
strong prospects for taking advantage of favorable drybulk supply
and demand fundamentals.”
The new $460 million facility lowers Genco’s
interest costs through improved pricing, eliminates near-term
refinancing risk by extending loan maturity to 2023, establishes an
attractive amortization profile, and enhances the Company’s
flexibility to execute its fleet growth and renewal program by
lifting restrictions on vessel acquisitions and additional
indebtedness. The final maturity date of the facility will be May
31, 2023. Borrowings under the facility will bear interest at LIBOR
plus 325 basis points through December 31, 2018 and LIBOR plus a
range of 300 to 350 basis points thereafter, dependent upon total
net indebtedness to the last twelve months EBITDA. Scheduled
amortization payments are $15 million per quarter commencing on
December 31, 2018 and may be recalculated upon the Company’s
request upon certain events.
Nordea Bank AB (publ), New York Branch is the
agent of the facility. Nordea Bank, AB (publ), New York Branch,
Skandinaviska Enskilda Banken AB (publ), ABN AMRO Capital USA
LLC, DVB Bank SE, Crédit Agricole Corporate & Investment Bank,
and Danish Ship Finance A/S acted as Mandated Lead Arrangers and
Bookrunners, and Deutsche Bank AG Filiale Deutschlandgeschäft, and
CTBC Bank Co. Ltd. acted as Co-Arrangers under the facility.
About Genco Shipping & Trading
Limited
Genco Shipping & Trading Limited transports
iron ore, coal, grain, steel products and other drybulk cargoes
along worldwide shipping routes. As of June 5, 2018, Genco Shipping
& Trading Limited’s fleet consists of 13 Capesize, six Panamax,
four Ultramax, 21 Supramax, one Handymax and 15 Handysize vessels
with an aggregate capacity of approximately 4,688,000 dwt.
"Safe Harbor" Statement Under the
Private Securities Litigation Reform Act of 1995
This press release contains forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements use words such as “anticipate,”
“budget,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” and other words and terms of similar meaning in
connection with a discussion of potential future events,
circumstances or future operating or financial performance.
These forward-looking statements are based on management’s current
expectations and observations. Included among the factors that, in
our view, could cause actual results to differ materially from the
forward looking statements contained in this report are the
following: (i) declines or sustained weakness in demand in the
drybulk shipping industry; (ii) continuation of weakness or
declines in drybulk shipping rates; (iii) changes in the supply of
or demand for drybulk products, generally or in particular regions;
(iv) changes in the supply of drybulk carriers including
newbuilding of vessels or lower than anticipated scrapping of older
vessels; (v) changes in rules and regulations applicable to the
cargo industry, including, without limitation, legislation adopted
by international organizations or by individual countries and
actions taken by regulatory authorities; (vi) increases in costs
and expenses including but not limited to: crew wages, insurance,
provisions, lube, oil, bunkers, repairs, maintenance and general,
administrative, and management fee expenses; (vii) whether our
insurance arrangements are adequate; (viii) changes in general
domestic and international political conditions; (ix) acts of war,
terrorism, or piracy; (x) changes in the condition of the Company’s
vessels or applicable maintenance or regulatory standards (which
may affect, among other things, our anticipated drydocking or
maintenance and repair costs) and unanticipated drydock
expenditures; (xi) the Company’s acquisition or disposition of
vessels; (xii) the amount of offhire time needed to complete
repairs on vessels and the timing and amount of any reimbursement
by our insurance carriers for insurance claims, including offhire
days; (xiii) the completion of definitive documentation with
respect to charters; (xiv) charterers’ compliance with the terms of
their charters in the current market environment; (xv) the extent
to which our operating results continue to be affected by weakness
in market conditions and charter rates; (xvi) our ability to
maintain contracts that are critical to our operation, to obtain
and maintain acceptable terms with our vendors, customers and
service providers and to retain key executives, managers and
employees; (xvii) the completion of definitive documentation and
fulfillment of conditions precedent under our proposed $460 million
credit facility; and other factors listed from time to time in our
public filings with the Securities and Exchange Commission
including, without limitation, the Company’s Annual Report on Form
10-K for the year ended December 31, 2017 and its subsequent
reports on Form 10-Q and Form 8-K. Our ability to pay dividends in
any period will depend upon various factors, including the
limitations under any credit agreements to which we may be a party,
applicable provisions of Marshall Islands law and the final
determination by the Board of Directors each quarter after its
review of our financial performance. The timing and amount of
dividends, if any, could also be affected by factors affecting cash
flows, results of operations, required capital expenditures, or
reserves. As a result, the amount of dividends actually paid
may vary. We do not undertake any obligation to update or
revise any forward‑looking statements, whether as a result of new
information, future events or otherwise. Concurrently with
the issuance of this press release, we are filing a Current Report
on Form 8-K which will be available on the SEC’s EDGAR website at
www.sec.gov containing further details of the $460 million credit
facility.
CONTACT:Apostolos ZafoliasChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
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