Genco Closes its New Five-Year $460 Million Credit Facility


Genco Shipping & Trading Limited announced 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.



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