NEW YORK, May 19 /PRNewswire-FirstCall/ -- Genco Shipping & Trading
Limited (NYSE: GNK) announced today that it has commenced a public offering of
primary and secondary shares of its common stock, par value $0.01 per share
(the "Common Stock"). The Company is offering approximately 2,702,637 shares
of Common Stock and certain selling shareholders are offering an aggregate of
3,547,363 shares of Common Stock. The Company intends to use all of its net
proceeds from the offering to repay a portion of its outstanding indebtedness
under its credit facility. Subject to the terms of the credit facility, the
amounts so repaid will be available for future borrowings, which the Company
may use for future acquisitions or other corporate purposes.
The secondary shares of Common Stock are being offered by an affiliate of
funds managed by Oaktree Capital Management, L.P., by the Company's Chairman,
Peter Georgiopoulos, and by the Company's Chief Financial Officer, John C.
Wobensmith in the amounts of 2,512,532, 1,000,000 and 34,831 shares,
respectively. Following the offering, the affiliate of the Oaktree-managed
funds will not directly own any shares of Common Stock, Mr. Georgiopoulos will
own 3,135,316 remaining shares, or approximately 10% of the total shares
outstanding, and Mr. Wobensmith will own 88,631 remaining shares, or less than
1% of the total shares outstanding. Following the offering, shares held by
Messrs. Georgiopoulos and Wobensmith will be subject to lockup agreements for
360 days and 45 days, respectively. The Company will not receive any proceeds
from the shares of Common Stock sold by the selling shareholders.
For purposes of covering over-allotments, the Company will grant the
underwriters the right to purchase an additional 625,000 shares of Common
Stock.
This offering is being made only by means of a prospectus. A copy of the
preliminary prospectus has been filed with the U.S Securities and Exchange
Commission and is available on the SEC's website, www.sec.gov. Morgan Stanley
& Co. Incorporated will act as global coordinator and joint bookrunner of the
offering. Jefferies & Company, Inc., J.P. Morgan Securities Inc., and
Dahlman Rose & Company, LLC will also act as joint bookrunners. DnB NOR
Markets, Inc. will act as a co-manager of the offering. Alternatively, when
available, copies of the prospectus may be obtained from the offices of Morgan
Stanley at 180 Varick Street, Second Floor, New York, New York 10014,
Attention: Prospectus Department or by email at prospectus@morganstanley.com.
This press release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be any
sale of these securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to the registration or qualification under the
securities laws on any such jurisdiction.
About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel
products and other drybulk cargoes along worldwide shipping routes. Genco
Shipping & Trading Limited currently owns a fleet of 28 drybulk vessels
consisting of five Capesize, six Panamax, three Supramax, six Handymax and
eight Handysize vessels, with an aggregate carrying capacity of approximately
2,020,000 dwt. After the expected delivery of the four remaining Capesize
vessels from companies within the Metrostar Management Corporation group and
three drybulk vessels from Bocimar International N.V. and Delphis N.V., Genco
Shipping & Trading Limited will own a fleet of 35 drybulk vessels, consisting
of nine Capesize, eight Panamax, four Supramax, six Handymax and eight
Handysize vessels, with an aggregate carrying capacity of approximately
2,910,000 dwt.
Disclosure Notice
This press release contains various forward-looking statements and
information that are based on management's belief, as well as assumptions made
by and information currently available to management. Forward-looking
information includes statements regarding the number of shares of Common Stock
being offered, the Company's use of proceeds from the offering, and the
anticipated ownership of shares of Common Stock following the offering. Such
statements are subject to various risks, uncertainties and assumptions,
including market conditions. Should one or more of those risks materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those expected. These risks, as well as others, are discussed
in greater detail in the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K for the fiscal
year ended December 31, 2007, and subsequent filings with the SEC.
SOURCE Genco Shipping & Trading Limited
-0- 05/19/2008
/CONTACT: John C. Wobensmith, Chief Financial Officer, Genco Shipping &
Trading Limited, +1-646-443-8555/
/Web site: http://www.gencoshipping.com /
(GNK)