August 14, 2007
Genco buys six more
Genco Shipping & Trading Limited (NYSE: GNK) has agreed to acquire six drybulk vessels with an average age of approximately two years from affiliates of Evalend Shipping Co. S.A. for an aggregate purchase price of approximately $336 million. Genco plans to finance the acquisition through borrowings under its $1.4 billion revolving credit facility.
The six vessels-- three Supramax vessels and three Handysize vessels-- are expected to be delivered to Genco during the fourth quarter of 2007. On completion of the acquisition, and including the nine Capesize vessels to be acquired from companies within the Metrostar Management Corporation group announced on July 18, 2007, Genco's fleet will consist of nine Capesize, seven Panamax, three Supramax, seven Handymax, and eight Handysize drybulk carriers, with a total carrying capacity of approximately 2,814,000 dwt and an average age of approximately eight years.
Genco President Robert Gerald Buchanan commented, "Once again, Genco has capitalized on an attractive opportunity to consolidate the drybulk industry and expand its modern, high-quality fleet. This latest acquisition further strengthens Genco's leading industry position and increases Genco's earnings power. We plan to continue to utilize management's expertise in taking advantage of the strong fundamentals for drybulk shipping and to secure the vessels in our expanded fleet on long-term time charters at favorable rates prior to their delivery. In accomplishing this important goal, we remain dedicated to providing leading international charterers with the highest quality vessels that adhere to stringent operational standards."