NEW YORK, Sept. 24 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) announced today the commencement of a public offering of
primary and secondary shares of its common stock, par value $0.01 per share
(the "Common Stock"). Genco expects to offer approximately 3,305,000 shares
of Common Stock representing gross proceeds of approximately $215,000,000, and
a selling shareholder is expected to offer 750,000 shares of Common Stock,
pursuant to the Company's existing shelf registration statement. Genco
intends to use all of its net proceeds from the offering to repay a portion of
its outstanding indebtedness under its credit facility. Subject to the terms
of the credit facility, the amounts so repaid will be available for future
borrowings, which Genco may use for future acquisitions or other corporate
purposes.
For purposes of covering over-allotments, the Company and the selling
shareholder will grant the underwriters the right to purchase an additional
10% of the total shares of Common Stock offered. Of this amount, the Company
expects that it will offer a number of shares sufficient to raise additional
gross proceeds of approximately $10,000,000 if the over-allotment option is
exercised in full, for a maximum offering of $225,000,000 by the Company, and
the selling shareholder will offer the remainder. The Company will not
receive any proceeds from the shares of Common Stock sold by the selling
shareholder.
This offering is being made only by means of a prospectus and related
prospectus supplement. A copy of the preliminary prospectus supplement,
together with the prospectus, has been filed with the U.S. Securities and
Exchange Commission and is available on the SEC's website, www.sec.gov. Bear,
Stearns & Co. Inc. and Jefferies & Company, Inc. will act as joint bookrunning
managers in the offering.
The preliminary prospectus supplement and related prospectus may also be
obtained by contacting:
Bear, Stearns & Co. Inc. Jefferies & Company, Inc.
383 Madison Ave. 520 Madison Ave., 12th Floor
New York, NY 10179 New York, NY 10022
Attention: Prospectus Department Attention: Equity Capital Markets
This press release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be any
sale of these securities in any state or other jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
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 owns
a fleet of 21 drybulk vessels, consisting of two Capesize, seven Panamax,
seven Handymax and five Handysize vessels, with a carrying capacity of
approximately 1,344,000 dwt.
Disclosure Notice
This press release contains various forward-looking statements and
information that are based on management's belief, as well as assumptions made
by and information currently available to management. Forward-looking
information includes statements regarding the terms and amount of securities
expected to be offered, the gross proceeds of the offering, and the
anticipated timing of the offering. Furthermore, the closing of the offering
is subject to several conditions. Such statements are subject to various
risks, uncertainties and assumptions, including market conditions. Should one
or more of those risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected. These
risks, as well as others, are discussed in greater detail in Genco's filings
with the Securities and Exchange Commission, including the Company's annual
report on Form 10-K for the fiscal year ended December 31, 2006 and subsequent
filings with the SEC.
SOURCE Genco Shipping & Trading Limited
CONTACT:
John C. Wobensmith, Chief Financial Officer, of Genco Shipping
& Trading Limited, +1-646-443-8555
Web site: http://www.gencoshipping.com
(GNK)
