Genco Shipping & Trading Limited Announces Agreement to Acquire Two 2016-Built Capesize Vessels
July 18 2018 - 8:30AM
Receives Commitment for a Five-Year
Senior Secured Credit Facility
Genco Shipping & Trading Limited (NYSE:GNK) (“Genco”) today
announced that it has entered into an agreement to acquire two 2016
South Korean built 180,000 dwt Capesize vessels for an en bloc
purchase price of approximately $98 million.
The agreement to purchase these two high
specification, fuel efficient Capesize vessels follows Genco’s
previously announced agreements to purchase two 2015-built 180,000
dwt Capesize vessels, one 2016-built 60,000 dwt Ultramax vessel and
one 2014-built 61,000 dwt Ultramax vessel. Genco intends to fund
the acquisition of these fuel-efficient vessels with a new credit
facility, as described below, and cash on hand. All six vessels are
expected to deliver to Genco in the third quarter of 2018.
Genco also announced that it received a
commitment for a five-year senior secured credit facility (the “New
Credit Facility”) to be led by Crédit Agricole Corporate &
Investment Bank with an estimated aggregate principal amount of
approximately $107 million. Under the terms of the New Credit
Facility, borrowings are to bear interest at LIBOR plus 250 basis
points through September 30, 2019 and LIBOR plus a range of 225 to
275 basis points thereafter, dependent upon Genco’s ratio of total
net indebtedness to the last twelve months EBITDA.
John C. Wobensmith, Chief Executive Officer,
commented, “Following our success in transforming Genco’s
commercial platform, we have taken another important step in
implementing our strategy of positioning Genco to more fully
capitalize on the favorable drybulk fundamentals. Our ability to
access the capital markets and commercial bank financing highlights
our industry leadership and has enabled us to enter into attractive
vessel acquisitions and benefit from an improving drybulk market.
Building on our successful capital raise and the closing of our
$460 million credit facility, we are pleased to have a commitment
for a new facility with attractive pricing and a favorable
amortization profile.”
Mr. Wobensmith continued, “We expect our pending
acquisitions of a total of six modern, fuel efficient vessels to
increase our earnings power during a time when the drybulk vessel
supply growth rate remains near multi-decade lows and the global
demand for iron, coal and other drybulk commodities is strong.”
Genco also announced today that it has entered into agreements
for the sale of two of its older Handysize vessels, the Genco
Explorer and the Genco Progress, as part of its fleet renewal
program. The aggregate sale price for the two vessels is
approximately $11.2 million. The sale is subject to customary
conditions.
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 July 18, 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 press release
are Genco’s ability to into the New Credit Facility and fulfill
conditions to finance or refinance vessel purchases thereunder, the
terms of any definitive documentation for the New Credit Facility,
completion of documentation for vessel transactions and the
performance of the terms thereof by buyers or sellers of vessels
and us, 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. 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.
CONTACT:Apostolos ZafoliasChief
Financial OfficerGenco Shipping & Trading Limited(646)
443-8550
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