Dry Bulk Shipping Group Continues Expanding

US – This week Genco Shipping & Trading Limited announced that it has taken delivery of the Genco Bourgogne, a 2010-built Supramax vessel, and the Genco Bay, a 2010-built Handysize vessel. The Genco Bourgogne is the ninth vessel to be delivered to the Company under its agreement previously announced on 25th June to acquire 13 Supramax vessels from Setaf SAS, a wholly owned subsidiary of Bourbon SA. The Genco Bay is the is the second of five vessels to be delivered to the Company under its agreement previously announced on 9th June to acquire five Handysize vessels from companies within the Metrostar group.

The Company also announced that it has reached an agreement to enter into a time charter for the Genco Bourgogne with Setaf Saget SAS for 15 to 17.5 months at a rate of $19,900 per day, less a 3.75% third party brokerage commission. The time charter was due to commence today.

It is planned that the Genco Bay wiil take up a time charter with Cargill International S.A. to run at least until February 2013. The rate for the spot market-related time charter will have 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 Company used its available cash to pay the remaining balance of $32.13 million for the Genco Bourgogne and a combination of available cash and debt to pay the remaining balance of $29.93 million for the Genco Bay. On the 20th August Genco entered into its previously announced $253 million senior secured term loan facility and intends to use this credit facility to refund a total of $21.5 million associated with the purchase of the Genco Bourgogne to the Company. On 14th july it entered into its previously announced $100 million secured term loan facility and has used this credit facility to fund a total of $20.0 million associated with the purchase of the Genco Bay.

The new vessels mean Genco have taken delivery of four Supramax and one Handysize vessels in exactly two weeks continuing to show its faith in the bulk market.