Genco Shipping & Trading Limited Takes Delivery of Handysize Newbuilding

Tuesday, Jul 27, 2010

Genco Shipping & Trading Limited (NYSE:GNK) today announced that it has taken delivery of the Genco Ocean, a 35,000 dwt Handysize newbuilding. The Genco Ocean is the first of five vessels to be delivered to the Company under Genco's agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies.

The Genco Ocean is expected to be delivered to its charterer, Cargill International S.A., on or about July 28, 2010 to commence a time charter for 35 to 37 months. The rate for the time charter will be linked to the Baltic Handysize Index (BHSI), incorporating a floor of $8,500 and a ceiling of $13,500 daily, with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate will be based on 115% of the average of the daily rates of the BHSI, as reflected in daily reports. Hire will be paid every 15 days in advance, net of a 5.00% third party brokerage commission.

The Company used its available cash to pay the remaining balance of $29.9 million for the Genco Ocean. On July 14, 2010, the Company entered into a commitment letter for a $100 million 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.

Source: PR Newswire