Genco Shipping & Trading Limited announces equity purchase agreements
Genco Shipping & Trading Limited has entered into agreements with funds or related entities managed by affiliates of Centerbridge Partners, L.P., funds or related entities managed by Strategic Value Partners, LLC or its affiliates, and funds managed by affiliates of Apollo Global Management, LLC, representing Genco Shipping’s three largest shareholders, for the purchase of an aggregate of up to $125 million of Series A Preferred Stock of Genco Shipping at a price of $4.85 per share, the company said in its press release.
The amount purchased by the foregoing investors may be reduced by up to $38.6 million in Series A Preferred Stock that may be sold in a separate private placement. An additional $6.25 million of Series A Preferred Stock is to be issued to the foregoing investors as a commitment fee. The Series A Preferred Stock has a liquidation preference of $4.85 per share and will mandatorily convert into shares of Genco Shipping’s common stock at a conversion price of $4.85 per share, subject to certain adjustments, upon receipt of approval of such conversion by Genco Shipping’s shareholders.
The sale of Series A Preferred Stock is expected to fulfill conditions under previously disclosed commitment letters from Genco Shipping’s lenders for a new $400 million credit facility and certain amendments to Genco Shipping’s existing $98 million credit facility.