Genco Shipping & Trading entered into a five-year senior secured credit facility in an aggregate principal amount of up to $108 million.
According to a related 8-K filing, Crédit Agricole Corporate and Investment Bank acted as administrative agent, security agent, structurer and bookrunner on the transaction. Skandinaviska Enskilda Banken joined Crédit Agricole as a mandated lead arranger.
Genco plans to draw down $51.75 million to partially finance the Genco Endeavour, Genco Resolute and Genco Weatherly, the first three of six vessels to be delivered to Genco as part of its recent agreements to acquire six high specification, fuel efficient Capesize and Ultramax carriers.
Genco plans additional drawings under the facility to finance a portion of the purchase price of the remaining three vessels. The company expects borrowings under this credit facility, when combined with borrowings under its existing $460 million credit facility, will lower its weighted average cost of debt by 100 basis points compared to its previous credit facility structure.
Genco expects delivery of the remaining vessels in the third quarter of 2018.
