Genco Shipping & Trading Limited Announces Credit Facility Amendments and Waivers

NEW YORK, Dec. 22, 2011 /PRNewswire/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced it has entered into separate agreements to amend or waive provisions of its $1.4 billion revolving credit facility, its $253 million senior secured term loan facility and its $100 million term loan facility. DnB Nor Bank ASA, Deutsche Bank AG Filiale Deutschlandgeschaft and Credit Agricole CIB, respectively, acted as the lead arranger of each facility.

Under the terms of the agreements, both the maximum leverage ratio covenant and the interest coverage ratio covenant have been waived for each facility through and including the quarter ending March 31, 2013. A new covenant has also been introduced for the period beginning October 1, 2011 and ending March 31, 2013, specifying that the Company will not permit its interest bearing consolidated indebtedness to exceed 62.5% of the aggregate amount of its interest bearing consolidated indebtedness plus its consolidated net worth in accordance with GAAP. As part of these agreements and to reduce its leverage, the Company prepaid an aggregate of $62.5 million in principal loan amounts, with $52.5 million allocated to the $1.4 billion revolving credit facility, $7.0 million allocated to the $253 million facility and $3.0 million allocated to the $100 million facility. All prepayments will be applied in inverse order of maturity under each credit facility.

John C. Wobensmith, Chief Financial Officer, commented, "With these agreements, Genco has taken proactive measures to increase financial flexibility, and we appreciate the ongoing support that the Company has received from its distinguished group of banks.  Our sizeable cash balance remains strong and positions our Company well to operate in a challenging market environment as we continue to employ an opportunistic time charter approach for our large high-quality fleet. Going forward, we will maintain our focus on taking advantage of the positive long-term demand for the global transportation of essential drybulk commodities and enhancing the Company's future earnings power."

Additional information on the credit facility amendments is available on the Company's Current Report on Form 8-K filed today with the Securities and Exchange Commission.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Excluding Baltic Trading Limited's fleet, we own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an aggregate carrying capacity of approximately 3,810,000 dwt.  In addition, our subsidiary Baltic Trading Limited currently owns a fleet of nine drybulk vessels, consisting of two Capesize, four Supramax, and three Handysize vessels. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited, a subsidiary of Genco.

"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, lube, oil, bunkers, repairs, maintenance and general, administrative and management fee expenses; (vi) the adequacy of our insurance arrangements; (vii) changes in general domestic and international political conditions; (viii) acts of war, terrorism, or piracy; (ix) 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; (x) the Company's acquisition or disposition of vessels; (xi) 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; (xii) the completion of definitive documentation with respect to charters; (xiii) charterers' compliance with the terms of their charters in the current market environment; 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, 2010 and its reports on Form 10-Q and Form 8-K. 

SOURCE Genco Shipping & Trading Limited

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED