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July 20, 2018

Genco Shipping to buy two Capesize vessels for $98m

Dry bulk cargo shipping services provider Genco Shipping and Trading has agreed to purchase two Capesize vessels built in South Korea for a combined purchase price of nearly $98m.

Dry bulk cargo shipping services provider Genco Shipping and Trading has agreed to purchase two Capesize vessels built in South Korea for a combined purchase price of nearly $98m.

Built in 2016, the fuel-efficient vessels have 180,000dwt capacity each.

The deal follows a set of previously announced agreements by Genco to acquire two 2015-built 180,000dwt Capesize vessels, as well as one 2016-built 60,000dwt Ultramax vessel and one 2014-built 61,000dwt Ultramax ship.

Funding for these vessels is expected to be provided by a combination of new credit facility and cash on hand.

The new five-year senior secured credit facility is set to be led by Crédit Agricole Corporate & Investment Bank with an estimated total principal sum of nearly $107m.

Delivery of all six vessels, including the newly announced units, is expected to take place by the third quarter of this year.

“We are pleased to have a commitment for a new facility with attractive pricing and a favourable amortisation profile.”

Genco CEO John Wobensmith said: “Following our success in transforming Genco’s commercial platform, we have taken another important step in implementing our strategy of positioning Genco to more fully capitalise on the favourable dry bulk fundamentals.

“Our ability to access the capital markets and commercial bank financing highlights our industry leadership and has enabled us to enter into attractive vessel acquisitions and benefit from an improving dry bulk market.

“Building on our successful capital raise and the closing of our $460m credit facility, we are pleased to have a commitment for a new facility with attractive pricing and a favourable amortisation profile.”

Genco has also reached agreements with undisclosed partners to sell two of its older Handysize vessels, named Genco Explorer and Genco Progress, as part of its fleet renewal programme.

The $11.2m agreements are subject to customary conditions.

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