NEW YORK, April 19 /PRNewswire-FirstCall/ -- Baltic Trading Limited (NYSE: BALT), a drybulk company focused on the spot market, announced today that it executed a credit agreement and other definitive documentation for a $100 million senior secured revolving credit facility. The Company had previously announced the bank commitment for this credit facility, underwritten by Nordea Bank Finland plc, in the Registration Statement on Form S-1 for its initial public offering.
Under the terms of the four-year facility, amounts borrowed will bear interest at LIBOR plus a margin of 3.25%. The Company expects to use the facility primarily as bridge financing for future vessel acquisitions. Borrowings of up to $25 million will be available for working capital purposes.
John C. Wobensmith, President and Chief Financial Officer, commented, "We are pleased to enter into a $100 million credit facility. Consistent with our strategy, this facility strengthens management's ability to capitalize on future growth opportunities in a quick and decisive manner while maintaining a low debt structure. As we seek to further expand our high-quality fleet, we will remain disciplined in our approach by adhering to a strict set of return criteria."
About Baltic Trading LimitedBaltic Trading, a Marshall Islands company recently formed by Genco Shipping & Trading Limited, is a shipping company focused on the drybulk industry spot market. Baltic Trading plans to use the proceeds of its initial public offering, together with a $75 million capital contribution received from Genco, to acquire its initial fleet of two Capesize newbuildings and four 2009-built Supramaxes as well as for working capital and general corporate purposes, which may include future vessel purchases. The vessels in Baltic Trading's initial fleet are expected to be delivered between April 2010 and October 2010. "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 important factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: the ability of Baltic Trading to complete its acquisition of its initial fleet of vessels and other factors listed from time to time under "Risk Factors" and other sections of our public filings with the SEC including, without limitation, Baltic Trading's registration statement on Form S-1. SOURCE Baltic Trading Limited