US-based dry bulk owner Genco Shipping & Trading has completed an amended and upsized revolving credit facility, boosting its borrowing capacity to $600m as it positions itself for future growth and continued balance sheet flexibility.
The new deal increases the New York-listed company’s credit line by 50%, or $200m, compared to the previous facility. The deal also includes improved pricing terms and extends the maturity out to 2030.
Genco, which owns and operates a fleet of 42 dry bulk vessels, said the 100% revolving structure allows it to reduce debt when market conditions permit, while still having access to capital for acquisitions or other corporate uses.
As of now, the company has $100m in debt drawn under the facility, with $500m in remaining capacity.
Key terms of the $600m revolving credit include a 20-year repayment profile, with no commitment reductions until March 2027; reduced margin of 1.75% and a lower 0.61% fee on undrawn amounts; and an accordion feature allowing for up to $300m in additional borrowing.
The facility was arranged with support from a syndicate of international shipping banks. Nordea acted in multiple roles, including coordinator, administrative agent, and sustainability coordinator. Mandated Lead Arrangers included Nordea, DNB Markets, SEB, and ING Capital, with CTBC Bank as Mandated Lead Arranger and First-Citizens Bank as Co-Arranger.
Genco said the refinancing strengthens its liquidity and improves its ability to pursue “accretive growth opportunities,” including fleet moves or other capital deployment as market conditions allow.
“Having significant capital readily available puts Genco in a highly advantageous position to act decisively to capture attractive growth opportunities for shareholders,” stated John Wobensmith, chief executive of Genco, adding: “We maintain an overall positive view of the drybulk market, due to the solid supply side fundamentals, and with $500m of undrawn revolver availability, we are in an optimal position to renew and grow our asset base.”
