Investors

Genco Shipping & Trading Limited Obtains Commitment for New $320 Million Term Loan Facility

Aug 18, 2008

NEW YORK, Aug. 18 /PRNewswire-FirstCall/ -- Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has received a bank commitment for a new $320 million senior secured amortizing term loan facility. The five-year facility, underwritten by Nordea Bank Finland Plc, Bayerische Hypo- und Vereinsbank AG, Sumitomo Mitsui Banking Corporation and DnB NOR Bank ASA, is subject to the execution of definitive documentation.

Under the terms of the commitment, amounts borrowed under the new facility will bear interest at LIBOR plus a margin of 1.25%. After December 31, 2009, the margin can decrease to 1.20% if the Company meets certain financial benchmarks. The Company expects to use the proceeds from the new facility to finance the previously announced acquisition of six drybulk newbuildings from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd.

John C. Wobensmith, Chief Financial Officer, commented, "We are pleased to secure a commitment from our lenders for a new $320 million term loan facility at an attractive rate as we continue to actively consolidate the drybulk industry utilizing our disciplined approach. The new facility highlights Genco's position as a world-class shipping company with the ability to raise capital during a challenging credit market and underscores our leading reputation among an expanding base of global lending institutions. By taking active measures to maintain our significant financial flexibility, we will continue to seek strategic acquisitions that create long-term value for the Company and its shareholders. In pursuing this critical objective, we will continue to seek to distribute sizeable dividends as we have consistently done since going public."

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 30 drybulk vessels consisting of five Capesize, seven Panamax, four Supramax, six Handymax and eight Handysize vessels, with an aggregate carrying capacity of approximately 2,150,000 dwt. After the expected delivery of 11 vessels the Company has agreed to acquire, Genco Shipping & Trading Limited will own a fleet of 41 drybulk vessels, consisting of 12 Capesize, eight Panamax, four Supramax, six Handymax and 11 Handysize vessels, with an aggregate carrying capacity of approximately 3,516,000 dwt.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are (i) the terms and conditions of any definitive documentation the Company may execute for the new credit facility described above and the fulfillment of other customary conditions under the commitment letter for such facility; (ii) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire a total of 11 remaining drybulk vessels; (iii) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, repairs, maintenance and general and administrative expenses; (iv) changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2007, and our subsequent reports on Form 10-Q and Form 8-K. Our ability to pay dividends in any period will depend upon factors, including the limitations under our loan agreements, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary.

SOURCE Genco Shipping & Trading Limited

CONTACT:
John C. Wobensmith,
Chief Financial Officer,
Genco Shipping & Trading Limited,
+1-646-443-8555

Web site: http://www.gencoshipping.com
(GNK)