Genco Agrees USD 460 Mn Refinancing

Genco bulkerImage Courtesy: Genco Shipping and Trading

Dry bulk shipping company Genco Shipping & Trading Limited has entered into a commitment letter for a five-year USD 460 million senior secured credit facility.

The proceeds from the new loan are to be used to refinance all of the company’s existing credit facilities into one and pay down the debt on the oldest seven vessels in fleet.

Genco said that the loan, which was agreed with Nordea Bank AB, will simplify the company’s capital structure and improve the terms across all refinanced facilities.

The new credit facility commitments are expected to be oversubscribed by approximately 40%.

Under the terms of the agreement, Genco is expected to achieve covenant light structure allowing for potential dividend distributions in the future, improve pricing and extend maturities, establish an attractive 17-year amortization period following an initial non-amortization period ending December 31, 2018, and enhance flexibility to execute upon its fleet growth and renewal program.

The final maturity date of the facility will be five years following closing, which is expected in the second quarter of 2018 and is subject to completion of definitive documentation and customary conditions precedent.

“With our recently signed commitment letter for a USD 460 million credit facility, we have taken another important step positioning Genco to capitalize on a drybulk market that continues to recover,” John C. Wobensmith, Chief Executive Officer, said.

Genco unveiled the new loan as part of its first quarter 2018 financial report. The company recorded a net loss for the first quarter of 2018 of USD 55.8 million, compared to a net loss of USD 15.6 million reported in the same period a year earlier.

The company’s net revenue totaled USD 55.8 million for the period ended March 31, 2018, nearly 60% higher than the same period of 2017.

Time charter equivalent (TCE) increased to USD 10,463 for the quarter, marking a year-over-year improvement of 66%.

Share this article

Follow World Maritime News

In Depth>


<< Oct 2019 >>
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CrewConnect Global 2019

CrewConnect Global is the leading forum for collaboration to advance new industry approaches to seafarer recruitment and training.

read more >

The 5th CWC China LNG & Gas International Summit

Gain Access to Global LNG & Gas Decision Makers in China

Take a peek inside our 2019 Introductory Brochure and stay on top of this rapidly developing market.

See who is already working with us this year as Speakers, Sponsors and Partners – download your Preview Brochure today and meet them in Beijing on 15-16 October 2019.

As the world’s second largest LNG importer, China will remain the biggest contributor to global LNG demand growth in the foreseeable future. Network with global LNG & gas decision makers, buyers, NOCs and Government Officials at the industry’s leading international event in China.

More info

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >