Attached files
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| 8-K - FORM 8-K - GENCO SHIPPING & TRADING LTD | kl08006.htm |
CONTACT:
John C.
Wobensmith
Chief
Financial Officer
Genco
Shipping & Trading Limited
(646)
443-8555
Genco
Shipping & Trading Limited Takes Delivery of Supramax Vessel
Announces
Plan to Sign Time Charters for Two Additional Newly Acquired Supramax
Vessels
NEW YORK,
August 4, 2010 – Genco Shipping & Trading Limited (NYSE: GNK) today
announced that it has taken delivery of the Genco Loire, a 2009-built Supramax
vessel. The Genco Loire is the second of 13 vessels to be delivered to the
Company under Genco’s agreement previously announced on June 25, 2010 to acquire
13 Supramax vessels from Setaf SAS, a wholly owned subsidiary of Bourbon
SA.
Genco has
signed a novation agreement for the vessel's current time charter with TMT
Bulk Corporation at a rate of $13,000 per day, less a 5% third party brokerage
commission, with a maximum expiration of October 2010.
The
Company used its available cash to pay the remaining balance of $29.16 million
for the Genco Loire. On July 16, 2010, the Company entered into a commitment
letter for a $253 million senior secured term loan facility and, upon the
closing of this credit facility, intends to use the credit facility to refund
$20 million associated with the purchase of this vessel to the
Company.
Genco
also announced that it has reached agreements to sign time charters for the
Genco Bourgogne and the Genco Pyrenees, both 2010-built Supramax vessels, with
Setaf- Saget SA. The Genco Bourgogne and the Genco Pyrenees represent two of the
13 Supramax vessels from the Bourbon acquisition.
The time
charter for the Genco Bourgogne is for approximately 15 to 17.5 months at a rate
of $19,900 per day, less a 3.75% third-party brokerage commission. The time
charter for the Genco Pyrenees is for approximately 11 to 13.5 months at a rate
of $19,000 per day, less a 3.75% third-party brokerage commission. Both time
charters are subject to the completion of definitive documentation and will
commence upon delivery of the Genco Bourgogne and the Genco Pyrenees,
respectively, which are expected during the third quarter of 2010.
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 currently owns
a fleet of 38 drybulk vessels, consisting of nine Capesize, eight Panamax, six
Supramax, six Handymax and nine Handysize vessels, with an aggregate carrying
capacity of approximately 3,044,000 dwt. After the expected delivery of four
Handysize vessels and eleven Supramax vessels that Genco has agreed to acquire
and retain, Genco will own a fleet of 53 drybulk vessels, consisting of nine
Capesize, eight Panamax, seventeen Supramax, six Handymax, and thirteen
Handysize vessels with a total carrying capacity of approximately 3,813,000
dwt. 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, and include, without limitation, the expected delivery of the
Genco Loire to its charterer and the amounts expected to be received under the
charter, Genco’s intentions to refund a portion of the vessel’s purchase price
using the credit facility mentioned above, and expected deliveries of additional
vessels. These forward-looking statements speak only as of the date on which
they are made, and we undertake no obligation to update or revise any
forward-looking statements. Such statements are subject to various risks,
uncertainties and assumptions, including the fulfillment of the closing
conditions under, or the execution of customary additional documentation for,
Genco’s agreements to acquire vessels; completion and funding of financing on
acceptable terms; and completion of definitive documentation for the $253
million senior secured term loan facility referenced above. Should
one or more of those risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expressed in any
forward-looking statements. These risks, as well as others, are discussed in
greater detail in Genco’s filings with the SEC, including, without limitation,
the “Risk Factors” section in each of the preliminary prospectus supplements and
related prospectus relating to our offerings, our Annual Report on Form 10-K for
the year ended December 31, 2009 and our subsequent filings with the
SEC.
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