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NEW YORK - Genco Shipping & Trading Limited (NYSE:GNK) announced Monday it has closed a $600 million revolving credit facility, increasing its borrowing capacity by 50% or $200 million from its existing facility.
The amended facility extends maturity to 2030 and reduces the margin to 1.75% from the previous 1.85%-2.15% range. The credit facility maintains a 20-year repayment profile with no commitment reductions until March 31, 2027, based on covenant compliance.
The fully revolving structure allows Genco to pay down debt while maintaining access to capital when needed. The facility also includes an accordion feature providing potential for an additional $300 million in borrowing capacity.
"Having significant capital readily available puts Genco in a highly advantageous position to act decisively to capture attractive growth opportunities for shareholders," said John C. Wobensmith, Chief Executive Officer, in the press release.
Nordea Bank Abp, New York Branch acted as Coordinator, Sustainability Coordinator, Administrative Agent, Collateral Agent and Security Trustee. Other participants include Skandinaviska Enskilda AB, DNB Markets, ING Capital, CTBC Bank, and First-Citizens Bank & Trust.
Genco currently has $100 million of debt outstanding and $500 million of undrawn revolver availability, according to the company statement.
The U.S.-based drybulk shipping company operates a fleet of 42 vessels with an average age of 12.6 years and an aggregate capacity of approximately 4,446,000 dwt. Genco specializes in the global transportation of commodities including iron ore, grain, steel products, and bauxite.
In other recent news, Genco Shipping & Trading Ltd reported a net loss of $11.9 million for the first quarter of 2025, equivalent to a loss per share of $0.28, missing analysts’ expectations of a $0.22 loss per share. The company’s revenue also fell short of forecasts, coming in at $41.6 million compared to the expected $45.58 million. Despite these results, Genco maintains a strong cash position and a low net loan to value ratio of 6%, which is among the lowest in the industry. The company has announced a $50 million share repurchase program, highlighting its commitment to returning value to shareholders. Genco continues to focus on strategic fleet renewal and market positioning, aiming to support future growth as market conditions improve. Analysts from firms such as Jefferies and B. Riley Securities have shown interest in Genco’s share buyback strategy and its impact on shareholder value. The company has also declared a $0.15 per share dividend for the quarter, underscoring its dedication to providing returns to shareholders. Genco’s management has expressed confidence in the company’s strategic initiatives and the long-term fundamentals of the drybulk market.
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