Genco in huge cash grab

Genco Shipping & Trading has unveiled over $500m in funding to help cover the cost of its recent spending spree.

Peter Georgiopoulos and John Fredriksen at RS Platou's Posidonia 2010 party.

New York-listed Genco has revealed loans of $353m to help pay for the purchase of 18 bulkers.

It has also announced plans to collect up to $172.5m from two separate equity issues linked to the purchase of the ships from Bourbon and Metrostar.

Peter Georgiopoulos-led Genco says it has grabbed a $253m loan linked to the acquisition of 13 Bourbon bulkers, which came to light last month.

The five-year facility will carry an interest rate of LIBDOR plus 3%, according to a document released to the US Securities and Exchange Commission (SEC).

It has borrowed a further $100m over seven years to help pay for the addition of five bulkers from Metrostar.

In a separate statement the shipowner announces plans to raise $100m from a convertible notes offering. The figure could rise to $115m if underwriters take up all of their options.

It will also sell a further 2.82 million shares, which could bring in $50m based on its closing price of $17.73 per share yesterday. Underwriters will boost that to $57.5m should options be exercised.

In May Georgiopoulos acquired all of Metrostar’s bulkers with Genco paying $166.3m for five handysizes and spin-off Baltic Trading shelling out $99.8m for a further three handies.

Only days later Genco snapped up 16 supramax bulkers from Bourbon for $545m, three of which have been sold on to one of Georgiopoulos’ private companies.

Georgiopoulos-led General Maritime paid $620m to take five VLCCs and two suezmax newbuildings from Metrostar back in May. It raised $195.6m from shareholders to help fund the deal.

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