TSL Express Daily News

Revolving Credit Facility Significantly Increases Borrowing Capacity & Enhances Financial Flexibility

NEW YORK, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today announced that it has closed its previously announced $500 million revolving credit facility.

Key terms of the $500 million revolving credit facility include:

• Borrowing capacity increased to $500 million from $344 million, an increase of $156 million or 46%
• 100% revolving credit facility structure provides flexibility to continue to pay down debt while maintaining the ability to opportunistically draw down capital
• Competitive pricing with margin grid reduced to 1.85% to 2.15% + SOFR from 2.15% to 2.75% + SOFR
  • Eliminated credit adjustment spread of approximately 0.11%
  • Margin grid based on the ratio of total net indebtedness to EBITDA
• 5-year tenor extends maturity by over two years from August 2026 to November 2028
• Repayment profile of 20 years
  • Quarterly revolver commitment reduction of approximately $15 million per quarter
  • Genco will have no mandatory debt repayments until 2028, due to our reduction in debt outstanding
• Sustainability linked feature with interest rate increased or decreased by a margin of 0.05% based on our performance relative to fleet-wide carbon emissions targets
• Favorable covenant package in line with our prior facility
  
  

John C. Wobensmith, Chief Executive Officer, commented, “We are pleased to close on this new credit facility and appreciate the continued support of our leading bank group. The significantly increased lending capacity and full revolving debt structure are consistent with our focus on further enhancing our balance sheet and align well with our comprehensive value strategy. With increased financial flexibility, we expect to continue to pursue opportunistic growth and further advance our fleet renewal strategy while remaining on a pathway towards net debt zero in the medium term. The reduced interest rate pricing and no mandatory debt repayments until facility maturity in 2028 also enable us to maintain our industry-low cash flow breakeven rate, which remains a core differentiator.”

Peter Allen, Chief Financial Officer, commented, “With this new revolving credit facility we have increased our borrowing capacity by over $150 million, reduced interest costs, and extended our maturity profile, which positions Genco well going forward. Current revolver availability of $290 million provides Genco with significant optionality to grow accretively, while continuing to delever. Importantly, the 100% revolving structure augments our flexibility to actively manage our debt outstanding and reduce interest expense, while maintaining the same level of borrowing capacity. Once again, we would like to thank our bank group for their continued support throughout the course of this transaction.”

Nordea Bank Abp is acting as coordinator, administrative agent, collateral agent, security trustee, and sustainability coordinator under the facility. Nordea Bank Abp, New York Branch, DNB Markets, Inc., Skandinaviska Enskilda Banken AB (PUBL) and ING Bank N.V., London Branch are mandated lead arrangers and bookrunners, Crédit Agricole Corporate & Investment Bank is a mandated lead arranger and First-Citizens Bank & Trust Company and CTBC Bank Co., Ltd. are co-arrangers.

Following closing of the facility, our debt outstanding is approximately $210 million and our undrawn revolver availability is approximately $290 million. Potential uses of the revolver are to support growth of the Company’s asset base as well as general corporate purposes. Given the 100% revolver structure, we plan to actively manage our debt outstanding to reduce interest expense while also planning to utilize the revolver as a source of funds to opportunistically acquire tonnage.

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. We provide a full-service logistics solution to our customers utilizing our in-house commercial operating platform, as we transport key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes. Our wholly owned high quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk) enabling us to carry a wide range of cargoes. We make capital expenditures from time to time in connection with vessel acquisitions. As of December 4, 2023, Genco Shipping & Trading Limited’s fleet consists of 19 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,997,000 dwt and an average age of 11.5 years.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance.  These forward-looking statements are based on our 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 release are the following: (i) the Company’s acquisition or disposition of vessels; (ii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (iii) the fulfillment of conditions precedent under our $500 million credit facility for borrowings thereunder; and (iv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent reports on Form 8-K and Form 10-Q).

CONTACT:
Peter Allen
Chief Financial Officer
Genco Shipping & Trading Limited
(646) 443-8550