New York-listed dry bulk owner Genco Shipping & Trading has landed a $450m refinancing deal and agreed to purchase three additional fuel-efficient ultramax vessels.
The company has secured a new $450m loan to refinance two of its existing $495m and $133m credit facilities. The new facility consists of a $150m term loan and a revolving line of up to $300m that can be used for acquisitions and general corporate purposes.
Since April 2021, Genco has struck deals to purchase six ultramax bulkers, including the most recent acquisition of three ships. The company expects to take delivery of these vessels between August 2021 and January 2022. Since December 2020, Genco has grown its core ultramax fleet by nine vessels, to a total of 15 vessels.
In addition, the company fixed three ultramaxes on period time charters for around two years each at rates between $23,375 and $25,500 per day. The charters were booked to de-risk the purchase of the ultramax trio and are expected to result in an unlevered cash-on-cash return of approximately 50% over the two years.
As of August, Genco’s fleet consists of 17 capesize, nine ultramax and 13 supramax vessels.