Genco’s new $600m revolving credit facility: A strategic fleet and growth move

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