Genco Avra Commences Long-Term Spot Market-Related Time Charter
Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Avra, a 35,000 dwt Handysize newbuilding. The Genco Avra is the third of five vessels to be delivered to the Company under Genco's agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies.
The Genco Avra is expected to be delivered to its charterer, Cargill International S.A., on or about May 14, 2011 to commence a spot market-related time charter for 34.5 to 37.5 months. The rate for the time charter will be linked to the Baltic Handysize Index (BHSI), incorporating a floor of $8,500 and a ceiling of $13,500 daily, with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate will be based on 115% of the average of the daily rates of the BHSI, as reflected in daily reports. Hire will be paid every 15 days in advance, net of a 5.00% third party brokerage commission.
The Company used available cash of $9.9 million as well as $20.0 million under its $100 million term loan facility to pay the remaining balance of $29.9 million for the Genco Avra.