May 9, 2005
Genco files IPO registration
Another shipping company is on the IPO trail. Peter Georgiopoulos's Genco Shipping and Trading has filed an initial public offering registration with the SEC. It plans to trade on the Nasdaq under the symbol "GSTL" amd is looking to raise up to $350 million.
Genco currently owns 15 drybulk carriers and expects to take delivery of a sixteenth next month.
"We acquired all of the vessels in our fleet from a subsidiary of The China National Cereals Oil and Foodstuffs Corp., or COFCO, a Chinese conglomerate, in December 2004 and during the first four months of 2005, with the last vessel scheduled for delivery in June 2005," says the registration statement. "All of the vessels in our current fleet are on time charters, with an average remaining life of 1.6 years as of March 31, 2005, to reputable charterers, including Lauritzen Bulkers A/S, or Lauritzen Bulkers, Cargill International S.A., or Cargill, BHP Billiton Marketing AG, or BHP, NYK Bulkship Europe, or NYK Europe, and Hyundai Merchant Marine Co.Ltd., or HMMC. We expect to place our sixteenth vessel on time charter upon delivery in June 2005. All of our present charterers have been approved by the lenders under our current credit facility. Due to the length and the average remaining life of the time charters, we expect these time charters to provide us with stable revenues for the foreseeable future."
"We intend to grow our fleet through timely and selective acquisitions of vessels in a manner that is accretive to our cash flow," says the statement. "In connection with this growth strategy, we intend to use the net proceeds of this offering to repay a significant portion of our existing indebtedness. We are also negotiating a new credit facility that we expect to use to refinance our existing indebtedness and acquire additional vessels that will be employed either in the spot or period charter market."