New York-listed drybulk shipowner Genco Shipping & Trading Limited is buying a modern Imabari built capesize vessel as part of the company’s growth strategy to further modernize its “asset base” and improve its “earnings capacity.”
The U.S. headquartered shipowner agreed to acquire a 2020-Imabari built 182,000 dwt scrubber-fitted capesize vessel for a purchase price of $63.6m. Genco expects to take delivery of the vessel, to be renamed the Genco Courageous, between September and October 2025.
This purchase marks the fourth high specification, fuel efficient capesize vessel that Genco has agreed to acquire since October 2023, Genco said, further expanding the company’s presence in a key sector.
Genco reports that intends to fund the acquisition through a combination of cash on hand and a drawdown from its revolving credit facility.
Genco’s current fleet consists of 42 vessels with an average age of 12.7 years and an aggregate capacity of approximately 4,446,000 dwt as follows: 16 capesizes, 15 ultramaxes and 11 supramaxes.
Following the anticipated acquisition of the vessel to be renamed the Genco Courageous, the company’s fleet is to expand to 43 vessels, of which 17 are capesize vessels, and the average age of the fleet will be reduced to 12.5 years on average.
John C. Wobensmith, CEO of drybulk specialist Genco Shipping and Trading, commented: “Following our success expanding Genco’s borrowing capacity by 50% with the closing of our new $600 million revolving credit facility, we also acted decisively to grow our Capesize fleet.
“This latest agreement to acquire a high-specification Capesize vessel reflects the continued execution of Genco’s growth strategy to further modernize our asset base and improve our earnings capacity. As part of our value strategy, Genco has invested approximately $200 million in the Capesize sector over the last two years, with proceeds from the sale of older, less fuel-efficient vessels reinvested into modern eco ships, during a period of compelling supply and demand dynamics that underpin strong future prospects for the Capesize market.”
Genco has significantly bolstered its financial capabilities, finalizing a $600m revolving credit facility aimed at enhancing its growth capacity.
This facility increases its borrowing capacity by 50% or $200m to $600m in aggregate and offers improved pricing terms (margin reduced to 1.75% and commitment fees on undrawn amounts reduced to 0.61%), and extended maturity to July 2030.
Key terms of the $600m revolving credit facility also include a 20-year repayment profile, with no commitment reductions until March 31, 2027, based on covenant compliance; and an accordion feature allowing for additional borrowing capacity potential of $300m.
According to Genco, the 100% revolving credit facility structure provides flexibility for the company to continue to pay down debt while maintaining the ability to opportunistically draw down capital.
