Genco Takes Delivery of Capesize Newbuild
Genco Shipping & Trading Limited (NYSE:GNK) announced that it has taken delivery of the Genco Commodus, a 170,500 dwt Capesize newbuilding. The Genco Commodus is the seventh vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group.
The Genco Commodus is expected to be delivered to its charterer, Morgan Stanley Capital Group Inc., on or about July 23, 2009 to commence a time charter for 23 to 25 months at a rate of $36,000 per day, less a 5% third party brokerage commission. Currently, Genco has approximately 68% of its fleet's estimated available days secured on contracts for the remainder of 2009 and 44% for 2010.
Genco has drawn upon its amended 10-year, $1.4b revolving credit facility to finance the remaining balance for the Genco Commodus. The company expects the delivery of two additional newbuilding vessels by the end of 2009 and intends to utilize the undrawn portion of its $1.4b revolving credit facility as well as cash flow from operations to fund these acquisitions.