GNK - Genco Shipping & Trading Limited Closes $500 Million Credit Facility | Benzinga
NEW YORK, Dec. 04, 2023 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) ("Genco" or the "Company"), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today announced that it has closed its previously announced $500 million revolving credit facility.
Key terms of the $500 million revolving credit facility include:
- Borrowing capacity increased to $500 million from $344 million, an increase of $156 million or 46%
- 100% revolving credit facility structure provides flexibility to continue to pay down debt while maintaining the ability to opportunistically draw down capital
- Competitive pricing with margin grid reduced to 1.85% to 2.15% + SOFR from 2.15% to 2.75% + SOFR
- Eliminated credit adjustment spread of approximately 0.11%
- Margin grid based on the ratio of total net indebtedness to EBITDA
- 5-year tenor extends maturity by over two years from August 2026 to November 2028
- Repayment profile of 20 years
- Quarterly revolver commitment reduction of approximately $15 million per quarter
- Genco will have no mandatory debt repayments until 2028, due to our reduction in debt outstanding
- Sustainability linked feature with interest rate increased or decreased by a margin of 0.05% based on our performance relative to fleet-wide carbon emissions targets
- Favorable covenant package in line with our prior facility
John C. Wobensmith, Chief Executive Officer, commented, "We are pleased to close on this new credit facility and appreciate the continued support of our leading bank group. The significantly increased lending capacity and full revolving debt structure are consistent with our focus on further enhancing our balance sheet and align well with our comprehensive value strategy. With increased financial flexibility, we expect to continue to pursue opportunistic growth and further advance ...