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GNK $320 Million Term Loan Facility
Genco Shipping & Trading Limited Obtains Commitment for New $320 Million Term Loan Facility
Monday August 18, 4:20 pm ET
NEW YORK, Aug. 18 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK - News) today announced that it has received a bank commitment for a new $320 million senior secured amortizing term loan facility. The five-year facility, underwritten by Nordea Bank Finland Plc, Bayerische Hypo- und Vereinsbank AG, Sumitomo Mitsui Banking Corporation and DnB NOR Bank ASA, is subject to the execution of definitive documentation.
Under the terms of the commitment, amounts borrowed under the new facility will bear interest at LIBOR plus a margin of 1.25%. After December 31, 2009, the margin can decrease to 1.20% if the Company meets certain financial benchmarks. The Company expects to use the proceeds from the new facility to finance the previously announced acquisition of six drybulk newbuildings from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.
John C. Wobensmith, Chief Financial Officer, commented, "We are pleased to secure a commitment from our lenders for a new $320 million term loan facility at an attractive rate as we continue to actively consolidate the drybulk industry utilizing our disciplined approach. The new facility highlights Genco's position as a world-class shipping company with the ability to raise capital during a challenging credit market and underscores our leading reputation among an expanding base of global lending institutions. By taking active measures to maintain our significant financial flexibility, we will continue to seek strategic acquisitions that create long-term value for the Company and its shareholders. In pursuing this critical objective, we will continue to seek to distribute sizeable dividends as we have consistently done since going public."
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