Genco Raises USD 125 Mn by Selling Shares

Diana Shipping Dry bulk specialists Genco Shipping & Trading Limited has entered into an agreement with three of its largest shareholders for the purchase of up to USD 125 million of Series A Preferred Stock. Funds affiliated to Centerbridge Partners, L.P., Strategic Value Partners, LLC and Apollo Global Management, LLC, agreed to buy the companys shares at a price of USD 4.85 per share. The amount purchased by the foregoing investors may be reduced by up to USD 38.6 million in Series A Preferred Stock that may be sold in a separate private placement, according to Genco Shipping & Trading. An additional USD 6.25 million of Series A Preferred Stock is to be issued to the foregoing investors as a commitment fee. The sale of the shares is expected to fulfill conditions under previously disclosed commitment letters from the company’s lenders for a new USD 400 million credit facility and certain amendments to the company’s existing USD 98 million credit facility.