Genco Shipping & Trading received a commitment for a five-year, $107 million senior secured credit facility led by Crédit Agricole.

Under the terms of the new credit facility, borrowings are to bear interest at LIBOR + 250 basis points through September 30, 2019 and LIBOR plus a range of 225 to 275 basis points thereafter, dependent upon Genco’s ratio of total net indebtedness to the last twelve months EBITDA.

The facility will be used to partially fund Genco’s acquisition of two 2016-built, South Korean 180 000 DWT capesize vessels for a purchase price of approximately $98 million. Genco previously agreed to purchase two 2015-built vessels, one 60 000 DWT ultramax vessel and one 61 000 DWT ultramax vessel. All six vessels are expected to deliver to Genco in Q3/18.

Genco will concurrently sell two of its older handysize vessels for $11.2 million as part of its fleet renewal program.

CEO of Genco, John C. Wobensmith, commented, “Following our success in transforming Genco’s commercial platform, we have taken another important step in implementing our strategy of positioning Genco to 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 market. We are pleased to have a commitment for a new facility with attractive pricing and a favourable amortisation profile.”

Genco Shipping & Trading is a U.S.-based provider of international seaborne dry bulk transportation services.