- An improved repayment structure with no significant fixed amortization payments until 2019
- The elimination of collateral maintenance covenants through the first half of 2018
- The elimination of the maximum leverage covenant
- The reduction of the minimum liquidity requirement
The Company also completed the sale of an aggregate of $125 million of Series A Preferred Stock of the Company. The Series A Preferred Stock sale consists of the purchase of $86.4 million of Genco's Series A Preferred Stock by funds or related entities managed by affiliates of Centerbridge Partners, L.P., funds or related entities managed by Strategic Value Partners, LLC or its affiliates, and funds managed by affiliates of Apollo Global Management, LLC, representing the Company's three largest shareholders, at a price of $4.85 per share. An additional $38.6 million in Series A Preferred Stock was purchased by certain investors at a price of $4.85 per share in an equity private placement. Such investors include affiliates of the Company's three largest shareholders as well as a number of other investors. The Series A Preferred Stock has a liquidation preference of $4.85 per share and will mandatorily convert into shares of the Company's common stock at a conversion price of $4.85 per share, subject to certain adjustments, upon receipt of approval of such conversion by the Company's shareholders. An additional $6.25 million of Series A Preferred Stock was issued to the investors in the $86.4 million purchase as a commitment fee.John C. Wobensmith, President, commented, "Genco's recent steps to strengthen its balance sheet represent a significant milestone for the Company. We have significantly enhanced our financial flexibility and bolstered our ability to manage the current market downturn. Importantly, we have also repositioned Genco to thrive in a recovery and capitalize on the Company's leading drybulk platform. Genco's focus remains on achieving the highest operational standards for our customers, while maintaining cost-efficient operations for the benefit of our shareholders. We appreciate the strong and continued support we have received from our investors and our banking group, which we believe underscores the Company's industry leadership and strong future prospects."
About Genco Shipping & Trading LimitedGenco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. As of November 15, 2016, Genco Shipping & Trading Limited's fleet consists of 13 Capesize, seven Panamax, four Ultramax, 21 Supramax, five Handymax and 16 Handysize vessels with an aggregate capacity of approximately 4,979,000 dwt.
CONTACT:John C. WobensmithPresidentGenco Shipping & Trading Limited(646) 443-8555