Genco Shipping & Trading Ltd. said Monday it is buying six drybulk newbuildings for $530 million in order to further enhance its fleet and benefit from demand for commodities like iron ore and coal.
The company is buying three Capesize and three Handysize vessels from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd. Deliveries are scheduled through the fourth quarter of 2009.
The company plans to finance the purchase with its $1.4 billion revolving credit facility, and it will seek a new credit facility or other financing to meet longer-term requirements for the vessels. It intends to lock the vessels into time charters ahead of their delivery.
The acquisition is subject to the completion of customary closing conditions.
Genco Shipping transports iron ore, coal, grain, steel products and other drybulk cargoes. It currently owns a fleet of 28 drybulk vessels.
The company is buying three Capesize and three Handysize vessels from Lambert Navigation Ltd., Northville Navigation Ltd., Providence Navigation Ltd., and Prime Bulk Navigation Ltd. Deliveries are scheduled through the fourth quarter of 2009.
The company plans to finance the purchase with its $1.4 billion revolving credit facility, and it will seek a new credit facility or other financing to meet longer-term requirements for the vessels. It intends to lock the vessels into time charters ahead of their delivery.
The acquisition is subject to the completion of customary closing conditions.
Genco Shipping transports iron ore, coal, grain, steel products and other drybulk cargoes. It currently owns a fleet of 28 drybulk vessels.