Genco Shipping & Trading (Genco) closed a previously announced $400 million credit facility and certain amendments to the company’s existing $98 million credit facility and its 2014 term loan facilities with ABN AMRO.

Proceeds from the new $400 million credit facility will be used to refinance all of the company’s existing credit facilities into one facility with the exception of the $98 million credit facility and the 2014 term loan facilities.

The syndicate of banks for this facility includes Nordea Bank Finland, Skandinaviska Enskilda Banken AB, DVB Bank, ABN AMRO Capital USA, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, Crédit Industriel et Commercial and BNP Paribas.

The new $400 million facility has improved terms and covenants across all of the company’s refinanced facilities and simplified its capital structure. The company further improved its liquidity and balance sheet with the completion of the $125 million capital raise.

The terms of the $400 million credit facility include the following:

  • An improved repayment structure with no significant fixed amortization payments until 2019
  • The elimination of collateral maintenance covenants through the first half of 2018
  • The elimination of the maximum leverage covenant
  • The reduction of the minimum liquidity requirement

The facility has a final maturity date of November 15, 2021, and borrowings, which are available for working capital purposes, will bear interest at LIBOR plus 375 basis points with an option to convert 150 basis points of this to principal through December 31, 2018.