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Genco Shipping & Trading Limited Amends $1.4 Billion Credit Facility
NEW YORK, Jan 26, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Enhances Financial Flexibility

Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has entered into an agreement to amend the Company's $1.4 billion credit facility. DnB NOR Bank ASA and Bank of Scotland PLC acted as the lead arrangers of the ten-year facility.

Under terms of the amended ten-year $1.4 billion facility, the collateral maintenance requirement will be waived until such time that Genco is in a position to satisfy the covenant and certain other conditions. Genco will continue to be able to borrow the undrawn portion of the loan during the waiver period. Amounts borrowed under the amended facility begin to reduce on March 31, 2009 at $12.5 million per quarter and will bear interest at LIBOR plus 2.00%.

Genco plans to fund the three remaining Capesize newbuildings expected to be delivered in 2009 with the undrawn portion of its credit facility as well as cash flow from operations. Currently, Genco has approximately 67% of its fleet's estimated available days secured on contracts for the remainder of 2009.

The Company also announced that, under the terms of the amended credit facility, its cash dividends and its share repurchases will be suspended, effective immediately. Genco will be able to reinstate its dividend policy and share repurchase program once the Company can represent that it is in a position to again satisfy the collateral maintenance covenant. The amendment to the credit facility places no further restrictions on uses of the Company's cash.

John C. Wobensmith, CFO, commented, "During a time when Genco's modern fleet continues to generate stable revenue and cash flow, management has taken further important steps aimed at ensuring that the Company emerges from the current market environment as a leader in the industry. With the amendment of its $1.4 billion credit facility, Genco has both solidified the Company's ability to fund its remaining three vessels and increased its financial flexibility. We believe that the favorable long-term fundamentals in the drybulk industry remain intact and the Company is in a strong position to seek opportunities to take advantage of the current weakness in the drybulk industry for the benefit of shareholders."

The following table reflects the current employment of Genco's current fleet as well as the employment or other status of vessels expected to join Genco's fleet:


                                                              Net
                                          Charter      Cash   Revenue Expected
                 Year                    Expiration    Daily  Daily   Delivery
    Vessel       Built    Charterer          (1)      Rate(2) Rate(3)    (4)
    ----------- ------ ---------------- ------------- ------- ------- --------

    Capesize
     Vessels
    -----------
    Genco        2007  Cargill          December 2009   45,263 62,750        -
     Augustus          International
                       S.A.

    Genco
     Tiberius    2007  Cargill           January 2010   45,263 62,750        -
                       International
                       S.A.

    Genco London 2007  SK Shipping        August 2010   57,500 64,250        -
                       Co., Ltd

    Genco Titus  2007  Cargill         September 2011   45,000 46,250        -
                       International                      (5)
                       S.A.

    Genco
     Constantine 2008  Cargill            August 2012   52,750               -
                       International                      (5)
                       S.A.

    Genco
     Hadrian     2008  Cargill           October 2012   65,000               -
                       International                         (5)
                       S.A.

    Genco
     Commodus  2009(6) To be                 TBD          TBD          Q2 2009
                       determined
                       ("TBD")

    Genco
     Maximus   2009(6)   TBD                 TBD          TBD          Q2 2009

    Genco
     Claudius  2009(6)   TBD                 TBD          TBD          Q3 2009


    Panamax
     Vessels
    -----------
    Genco
     Beauty     1999   Cargill               May 2009   31,500               -
                       International
                       S.A.

    Genco
     Knight     1999   SK Shipping Ltd.      May 2009   37,700               -

    Genco
     Leader     1999   Baumarine AS     November 2009   Spot(7)              -

    Genco
     Vigour     1999   STX Panocean        March 2009 29,000(8)              -
                       (UK) Co. Ltd.

    Genco
     Acheron    1999   Global Chartering    July 2011 55,250(9)              -
                       Ltd (a subsidiary
                       of ArcelorMittal
                       Group)

    Genco
     Surprise   1998   Hanjin Shipping  December 2010   42,100               -
                       Co., Ltd.


    Genco
     Raptor     2007   COSCO Bulk          April 2012   52,800               -
                       Carriers
                       Co., Ltd.

    Genco
     Thunder    2007   Baumarine AS      October 2009  Spot(10)              -



    Supramax
     Vessels
    -----------
    Genco
     Predator   2005  Bulkhandling     September 2009 Spot(11)
                      Handymax A/S

    Genco
     Warrior    2005  Hyundai Merchant  November 2010   38,750               -
                      Marine Co. Ltd.

    Genco
     Hunter     2007  Pacific Basin         June 2009   62,000               -
                      Chartering  Ltd.                    (12)

    Genco
     Cavalier   2007  Samsun Logix          July 2010   48,500  47,700       -
                      Corporation                         (13)


    Handymax
     Vessels
    -----------
    Genco
     Success    1997  Korea Line        February 2011   33,000               -
                      Corporation                        (14)

    Genco
     Carrier    1998  Louis Dreyfus        March 2011   37,000               -
                      Corporation

    Genco
     Prosperity 1997  Pacific Basin         June 2011   37,000               -
                      Chartering Ltd                      (15)

    Genco
     Wisdom     1997  Hyundai Merchant  February 2011   34,500               -
                      Marine Co. Ltd.
    Genco
     Marine     1996  NYK Bulkship         March 2009   47,000               -
                      Europe S.A.

    Genco Muse  2001  AMN Bulkcarriers   January 2009   30,000
                      INC                                 (16)


    Handysize
     Vessels
    -----------
    Genco
     Explorer   1999   Lauritzen          August 2009   19,500               -
                       Bulkers A/S

    Genco
     Pioneer    1999   Lauritzen          August 2009   19,500               -
                       Bulkers A/S

    Genco
     Progress   1999   Lauritzen          August 2009   19,500               -
                       Bulkers A/S

    Genco
     Reliance   1999   Lauritzen          August 2009   19,500               -
                       Bulkers A/S

    Genco
     Sugar      1998   Lauritzen          August 2009   19,500               -
                       Bulkers A/S

    Genco
     Charger    2005   Pacific Basin    November 2010   24,000               -
                       Chartering Ltd.

    Genco
     Challenger 2003   Pacific Basin    November 2010   24,000               -
                       Chartering Ltd.

    Genco
     Champion   2006   Pacific Basin    December 2010   24,000               -
                       Chartering Ltd.


    (1) The charter expiration dates presented represent the earliest dates
    that our charters may be terminated in the ordinary course.  Except for
    the Genco Titus, under the terms of each contract, the charterer is
    entitled to extend time charters from two to four months in order to
    complete the vessel's final voyage plus any time the vessel has been off-
    hire. The charterer of the Genco Titus has the option to extend the
    charter for a period of one year.
    (2) Time charter rates presented are the gross daily charterhire rates
    before third party commissions ranging from 1.25% to 6.25%, except as
    indicated for the Genco Leader in note 7 below. In a time charter, the
    charterer is responsible for voyage expenses such as bunkers, port
    expenses, agents' fees and canal dues.
    (3) For the vessels acquired with a below-market time charter rate, the
    approximate amount of revenue on a daily basis to be recognized as
    revenues is displayed in the column named "Net Revenue Daily Rate" and is
    net of any third-party commissions. Since these vessels were acquired with
    existing time charters with below-market rates, we allocated the purchase
    price between the respective vessel and an intangible liability for the
    value assigned to the below-market charterhire.  This intangible liability
    is amortized as an increase to voyage revenues over the minimum remaining
    term of the charter.  For cash flow purposes, we will continue to receive
    the rate presented in the "Cash Daily Rate" column until the charter
    expires.
    (4) Dates for vessels being delivered in the future are estimates based on
    guidance received from the sellers and/or the respective shipyards.
    (5) These charters include a 50% index-based profit sharing component
    above the respective base rates listed in the table. The profit sharing
    between the charterer and us for each 15-day period is calculated by
    taking the average over that period of the published Baltic Cape Index of
    the four time charter routes, as reflected in daily reports. If such
    average is more than the base rate payable under the charter, the excess
    amount is allocable 50% to each of the charterer and us. A third-party
    brokerage commission of 3.75% based on the profit sharing amount due to us
    is payable out of our share.
    (6) Year built for vessels being delivered in the future are estimates
    based on guidance received from the sellers and/or the respective
    shipyards.
    (7) We have reached an agreement to enter the vessel into the Baumarine
    Pool with an option to convert the balance period of the charter party to
    a fixed rate, but only after June 1, 2009. The vessel entered the pool
    following the completion of its previous time charter on December 16,
    2008. In addition to a 1.25% third party brokerage commission, the charter
    party calls for a management fee which consists of a 1.25% deduction as
    well as a $334 fixed daily management fee.
    (8) We have entered into a time charter for 23 to 25 months at a rate of
    $33,000 per day for the first 11 months, $25,000 per day for the following
    11 months and $29,000 per day thereafter, less a 5% third-party
    commission. For purposes of revenue recognition, the time charter contract
    is reflected on a straight-line basis at approximately $29,000 per day for
    23 to 25 months in accordance with generally accepted accounting
    principles in the United States, or U.S. GAAP.
    (9) We have entered into a time charter agreement with a subsidiary of
    ArcelorMittal for 35 to 37 months at a rate of $55,250 per day less a 5%
    third-party commission. The vessel delivered to its new charterer on
    August 1, 2008.
    (10) We have reached an agreement to enter the vessel into the Baumarine
    Pool with an option to convert the balance period of the charter party to
    a fixed rate, but only after March 1, 2009. The vessel entered the pool
    following the completion of its previous time charter on November 16,
    2008. In addition to a 1.25% third party brokerage commission, the charter
    party calls for a management fee which consists of a 1.25% deduction as
    well as a $334 fixed daily management fee.
    (11) We have entered into a short-term time charter with A/S Klaveness
    Chartering for 3 to 5 months at a rate of $58,000 per day less a 5% third-
    party commission. The charter was completed on November 2, 2008. Following
    the expiration of this charter we have entered the vessel into the
    Bulkhandling Handymax Pool with an option to convert the balance period of
    the charter party to a fixed rate, but only after January 1, 2009.
    (12) We have reached an agreement to extend the time charter with Pacific
    Basin Chartering Ltd. for 11 to 13.5 months at a rate of $62,000 per day,
    less a 5% third party brokerage commission. The time charter commenced
    following the expiration of the vessel's prior time charter on July 21,
    2008.
    (13) The time charter for this vessel commenced on July 19, 2008. In
    completing the negotiation of certain changes we required for novation of
    the existing charter, we agreed to reduce the daily gross rate and
    received a rebate from the brokers involved in the vessel sale. Since the
    vessel was acquired with a below-market rate, we allocated the purchase
    price between the vessel and an intangible liability for the value
    assigned to the below-market charterhire.
    (14) We extended the time charter for an additional 35 to 37.5 months at a
    rate of $40,000 per day for the first 12 months, $33,000 per day for the
    following 12 months, $26,000 per day for the next 12 months and $33,000
    per day thereafter less a 5% third-party commission. In all cases, the
    rate for the duration of the time charter will average $33,000 per day.
    For purposes of revenue recognition, the time charter contract is
    reflected on a straight-line basis at approximately $33,000 per day for 35
    to 37.5 months in accordance with U.S. GAAP.
    (15) We recently extended the time charter for an additional 35 to 37.5
    months at a rate of $37,000 per day less a 5% third-party commission. The
    new charter commenced on July 10, 2008, following the expiration of the
    previous charter.
    (16) We have entered into a time charter agreement with AMN Bulkcarriers
    Inc. for 3 to 5 months at a rate of $30,000 per day less a 5% third-party
    commission. The new charter commenced on October 5, 2008, following the
    expiration of the previous charter.


About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco Shipping & Trading Limited currently owns a fleet of 32 drybulk vessels consisting of six Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,396,000 dwt. After the expected delivery of three vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting of nine Capesize, eight Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,908,000 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. 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) changes in demand or rates in the drybulk shipping industry; (ii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iii) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (iv) 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; (v) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) 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; (ix) the number of offhire days needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (x) the Company's acquisition or disposition of vessels; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire a total of three remaining drybulk vessels; (xiii) the results of the investigation into the incident involving the collision of the Genco Hunter, the possible cause of and liability for such incident, and the scope of insurance coverage available to Genco for such incident; 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, 2007 and its reports on Form 10-Q and Form 8-K.

SOURCE Genco Shipping & Trading Limited

http://www.gencoshipping.com