Gener8 Maritime announced it secured a $60.2 million term loan facility from Blue Mountain Capital to fund payments remaining on one of the company’s VLCC newbuildings. The company said Citibank acted as a facility and collateral agent.

The Citibank facility is secured on a first lien basis by a pledge by Gener8’s subsidiary GNRT Sub VII of its interest in Gener8 Strength plus a pledge by GNRT Strength itself, which is a registered company intended to own a vessel – presumably the Gener8 Strength VLCC under construction at China’s Shanghai Waigaoqiao Shipbuilding.

GNRT Sub VII is required to use “commercially reasonable” efforts to obtain a credit facility with export credit insurance support from China Export and Credit Insurance. This extra finance will be used to fund post-delivery financing of up to six newbuildings “as promptly as practicable.”