New York-listed drybulk shipowner Genco Shipping & Trading Limited 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 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.

The U.S.-based drybulk ship owning company has a fleet portfolio of 42 dry cargo vessels with an average age of 12.6 years and an aggregate capacity of approximately 4,446,000 dwt. 

Genco said it has closed a $600m revolving credit facility, amending its existing facility to provide significant capacity to “pursue accretive growth opportunities” among other uses.

John Wobensmith, CEO of drybulk specialist Genco Shipping and Trading, commented: “We are pleased to have meaningfully increased our borrowing capacity under attractive terms, which is a reflection of Genco’s industry leading balance sheet and our strong track record of executing our proven value strategy and providing shareholder returns through the drybulk cycle.

“Having significant capital readily available puts Genco in a highly advantageous position to act decisively to capture attractive growth opportunities for shareholders.

“We believe that Genco’s capital structure offers a compelling risk-reward balance, while also providing significant financial flexibility and optionality that goes hand-in-hand with our capital allocation strategy focused on dividends, deleveraging and growth.

“We maintain an overall positive view of the drybulk market, due to the solid supply side fundamentals, and with $500 million of undrawn revolver availability, we are in an optimal position to renew and grow our asset base.”

Peter Allen, chief financial officer, pointed out: “With this latest increased $600 million credit facility, Genco achieved several important objectives, including upsizing our borrowing capacity, extending maturity, reducing margin, and improving several other key terms.

“Notably, the lack of commitment reductions until March 31, 2027, enables Genco to maintain the full $600 million of borrowing capacity for an extended period of time adding to our optionality as markets develop.

“Furthermore, the full revolving credit facility structure fits well into our broader capital allocation approach, providing the flexibility to continue to paydown debt while maintaining the ability to strategically access capital when attractive opportunities materialize. We appreciate the continued support of our high-quality bank group, as we continue to execute Genco’s strategy.”