Genco Shipping & Trading amends and upsizes revolving credit facility to $600 million

Genco Shipping & Trading Limited (NYSE:GNK) announced Monday that it has amended and expanded its existing revolving credit facility to $600 million, according to a statement based on a recent SEC filing.

On July 10, the company and certain of its subsidiaries entered into a Fifth Amendment to its Credit Agreement with Nordea Bank Abp (OTC:NRDBY), New York Branch, as Administrative Agent, Collateral Agent, and Security Trustee, along with other lenders. The amendment increases the maximum loan capacity from $400 million to $600 million, a 50% rise from the previous limit. With a current debt-to-capital ratio of just 0.12, the company operates with a moderate level of debt, one of several insights available through InvestingPro’s comprehensive analysis tools.

The new $600 million facility is structured entirely as a revolving credit line and is available to support the company’s asset base and for general corporate purposes. Borrowings under the facility will bear interest at a rate between 1.75% and 2.15% plus the Secured Overnight Financing Rate (SOFR), depending on Genco’s ratio of net indebtedness to EBITDA. The interest rate margin may be adjusted by 0.05% based on the company’s emissions performance.

The maturity date of the facility has been extended to July 2030, from the previous maturity of November 2028. The repayment profile is set at 20 years, with no reductions in commitment required until March 31, 2027, provided the company remains in compliance with covenants.

The collateral maintenance covenant has been reduced from 140% to 135%. Other key covenants remain substantially unchanged from the previous agreement. The collateral package includes all 42 vessels currently in Genco’s fleet and may include future vessels. The company may declare and pay dividends as long as there is no event of default and financial covenants are met at the time of declaration.

Commitment fees for unused portions of the facility are set at 35% of the applicable interest rate margin.

This information is based on a press release statement included in the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Genco Shipping & Trading Ltd reported a net loss of $11.9 million for the first quarter of 2025, missing analysts’ expectations with a loss per share of $0.28 compared to the forecasted loss of $0.22. The company’s revenue also fell short, coming in at $41.6 million against an expected $45.58 million. Despite these results, Genco has secured a $600 million revolving credit facility, increasing its borrowing capacity by $200 million. This new facility, coordinated by Nordea Bank Abp, extends maturity to 2030 and offers an accordion feature for an additional $300 million in borrowing capacity. Genco’s strategic initiatives include a $50 million share repurchase program and a continued focus on dividends and deleveraging. The company maintains a strong cash position with $31 million in cash and a low net loan to value ratio of 6%. Analysts from firms like Jefferies and B. Riley Securities have shown interest in Genco’s strategic direction and capital allocation plans, which include renewing its fleet and managing costs effectively.

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