Genco Shipping & Trading Limited (NYSE:GNK) announced that it has taken delivery of the Genco Pyrenees, a 2010-built Supramax vessel, and the Genco Normandy, a 2007-built Supramax vessel. The Genco Pyrenees and the Genco Normandy are the third and fourth vessels, respectively, 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 Genco Pyrenees is expected to be delivered to its charterer, Setaf Saget SAS, on or about August 12, 2010 to commence a time charter for 11 to 13.5 months at a rate of $19,000 per day, less a 3.75% third-party brokerage commission. The Company has also reached an agreement to enter into a time charter for the Genco Normandy with STX Pan Ocean UK for approximately 1.5 to 4 months at a rate of $20,000 per day, less a 5% third party brokerage commission. The time charter for the Genco Normandy is expected to commence on or about August 12, 2010 and is subject to the completion of definitive documentation.
The company used its available cash to pay the remaining balance of $32.13 million for the Genco Pyrenees and $27m for the Genco Normandy. 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 a total of $38m associated with the purchase of these vessels to the company.