Genco Shipping & Trading Limited (NYSE:GNK) has taken delivery of the Genco Lorraine, a 2009-built Supramax vessel. The Genco Lorraine is the first of 13 vessels to be delivered to the company under Genco's agreement previously announced on June 25, 2010 to acquire 13 Supramax vessels from Setaf SAS, a wholly owned subsidiary of Bourbon SA.
The company also announced that it has reached an agreement to enter into a time charter for the Genco Lorraine with Olam International Limited for 23 to 25 months at a rate of $18,500 per day, less a 5% third party brokerage commission. The time charter for the Genco Lorraine is expected to commence on or about July 31, 2010 and is subject to the completion of definitive documentation.
The company used its available cash to pay the remaining balance of $29.16mn for the Genco Lorraine. On July 16, 2010, the Company entered into a commitment letter for a $253m senior secured term loan facility and, upon the closing of this credit facility, intends to use the credit facility to refund $20m associated with the purchase of this vessel to the Company.