Genco targets fleet and growth moves with new $600m credit
Genco Shipping Secures $600M Credit Facility
Genco Shipping & Trading, a prominent US-based dry bulk shipping company, has successfully finalized an amended revolving credit facility, raising its borrowing capacity to $600 million. This strategic move, which increases the credit line by 50% or $200 million from the previous arrangement, positions Genco for growth while enhancing its financial flexibility. The new facility features improved pricing terms and extends its maturity to 2030.
Details of the New Credit Facility
The updated revolving credit facility allows Genco to draw on funds as needed, providing the flexibility to reduce debt when market conditions are favorable. Currently, the company has $100 million drawn from this facility, leaving $500 million available for future needs, including acquisitions and other corporate initiatives. With a repayment profile spanning 20 years, the facility imposes no commitment reductions until March 2027, features a reduced margin of 1.75%, and includes a lower fee of 0.61% for undrawn amounts.
Furthermore, the agreement comes with an accordion feature, permitting an additional borrowing capacity of up to $300 million. This facility was arranged through a consortium of international shipping banks, with Nordea playing multiple roles, including coordinator and sustainability coordinator. Key contributors to the arrangement include DNB Markets, SEB, ING Capital, CTBC Bank, and First-Citizens Bank.
Genco’s refinancing not only strengthens its liquidity but also enhances its ability to pursue valuable growth opportunities in the industry. Chief Executive John Wobensmith emphasized the strategic advantage of having significant capital readily available, stating that Genco is well-positioned to capture promising opportunities for its shareholders. He expressed optimism about the dry bulk market, citing strong supply-side fundamentals and the company’s robust financial position.
