Genco Shipping & Trading Limited Takes Delivery of Supramax Vessel

Aug 04, 2010
Announces Plan to Sign Time Charters for Two Additional Newly Acquired Supramax Vessels

NEW YORK, Aug 04, 2010 /PRNewswire via COMTEX/ --Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Loire, a 2009-built Supramax vessel. The Genco Loire is the second of 13 vessels to be delivered to the Company under Genco's agreement previously announced on June 25, 2010 to acquire 13 Supramax vessels from Setaf SAS, a wholly owned subsidiary of Bourbon SA.

Genco has signed a novation agreement for the vessel's current time charter with TMT Bulk Corporation at a rate of $13,000 per day, less a 5% third party brokerage commission, with a maximum expiration of October 2010.

The Company used its available cash to pay the remaining balance of $29.16 million for the Genco Loire. On July 16, 2010, the Company entered into a commitment letter for a $253 million senior secured term loan facility and, upon the closing of this credit facility, intends to use the credit facility to refund $20 million associated with the purchase of this vessel to the Company.

Genco also announced that it has reached agreements to sign time charters for the Genco Bourgogne and the Genco Pyrenees, both 2010-built Supramax vessels, with Setaf Saget SAS. The Genco Bourgogne and the Genco Pyrenees represent two of the 13 Supramax vessels from the Bourbon acquisition.

The time charter for the Genco Bourgogne is for approximately 15 to 17.5 months at a rate of $19,900 per day, less a 3.75% third-party brokerage commission. The time charter for the Genco Pyrenees is for approximately 11 to 13.5 months at a rate of $19,000 per day, less a 3.75% third-party brokerage commission. Both time charters are subject to the completion of definitive documentation and will commence upon delivery of the Genco Bourgogne and the Genco Pyrenees, respectively, which are expected during the third quarter of 2010.

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 currently owns a fleet of 38 drybulk vessels, consisting of nine Capesize, eight Panamax, six Supramax, six Handymax and nine Handysize vessels, with an aggregate carrying capacity of approximately 3,044,000 dwt. After the expected delivery of four Handysize vessels and eleven Supramax vessels that Genco has agreed to acquire and retain, Genco will own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, seventeen Supramax, six Handymax, and thirteen Handysize vessels with a total carrying capacity of approximately 3,813,000 dwt. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited, a subsidiary of Genco.

"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, and include, without limitation, the expected delivery of the Genco Loire to its charterer and the amounts expected to be received under the charter, Genco's intentions to refund a portion of the vessel's purchase price using the credit facility mentioned above, and expected deliveries of additional vessels. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. Such statements are subject to various risks, uncertainties and assumptions, including the fulfillment of the closing conditions under, or the execution of customary additional documentation for, Genco's agreements to acquire vessels; completion and funding of financing on acceptable terms; and completion of definitive documentation for the $253 million senior secured term loan facility referenced above. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed in any forward-looking statements. These risks, as well as others, are discussed in greater detail in Genco's filings with the SEC, including, without limitation, the "Risk Factors" section in each of the preliminary prospectus supplements and related prospectus relating to our offerings, our Annual Report on Form 10-K for the year ended December 31, 2009 and our subsequent filings with the SEC.

SOURCE Genco Shipping & Trading Limited