Thursday, June 10, 2010

Genco Shipping Buy Five New Bulk Carriers

More Investment for Ship Charter Group
Shipping News Feature

US - Genco Shipping & Trading Limited, the dry bulk shipping specialists, are to increase their fleet of 35 specialist vessels with the purchase of five 35,000 deadweight vessels, including three new builds, from companies within the Metrostar group of companies for an aggregate purchase price of approximately $166.3 million. The acquisition is subject to the completion of customary documentation and closing conditions.

The five vessels are expected to be delivered to Genco between July 2010 and September 2011. Four of the five vessels are secured on long term time charters, each of which includes a minimum and maximum base rate as well as a profit-sharing component, with Cargill International S.A. The remaining vessel is secured on a spot market-related time charter with Cargill International S.A. at a rate based on 115% of the average of the daily rates of the Baltic Handysize Index (BHSI), as published by The Baltic Exchange.

Technical management of all five vessels will be maintained by Metrostar Management and overseen by Genco. Upon completion of the acquisition, Genco's fleet will consist of 40 drybulk vessels with a total carrying capacity of approximately 3,078,000 dwt and an average age of approximately 7.1 years.

Robert Gerald Buchanan, President, commented:

"We are pleased to expand Genco's position as an industry bellwether with the acquisition of five high-quality Handysize vessels. This acquisition will further enhance the Company's commercial prospects and strengthen Genco's leading brand as an operator of modern tonnage.

“Consistent with our goal to provide shareholders with both sizeable contracted revenues and the ability to benefit from future rate increases, four vessels are locked away on favourable time charters while another is secured on a spot market-related time charter. In maintaining our commitment to build a fleet comprised of first-in-class vessels, we remain well positioned to deliver service that adheres to the highest industry standards for our top international customers."