Attached files
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| 8-K - FORM 8-K - GENCO SHIPPING & TRADING LTD | kl07014.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 Charter for Genco Lorraine
NEW YORK,
July 29, 2010 – Genco Shipping & Trading Limited (NYSE: GNK) today announced
that it has taken delivery of the Genco Lorraine, a 2009-built Supramax vessel.
The Genco Lorraine is the first 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.
The
Company also announced that it has reached an agreement to enter into a time
charter for the Genco Lorraine with Olam International Limited for 23 to 25
months at a rate of $18,500 per day, less a 5% third party brokerage commission.
The time charter for the Genco Lorraine is expected to commence on or about July
31, 2010 and is subject to the completion of definitive
documentation.
The
Company used its available cash to pay the remaining balance of $29.16 million
for the Genco Lorraine. 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.
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 37 drybulk vessels, consisting of nine Capesize, eight Panamax, five
Supramax, six Handymax and nine Handysize vessels, with an aggregate carrying
capacity of approximately 2,991,000 dwt. After the expected delivery of four
Handysize vessels and twelve 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 Lorraine 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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