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New York - Oct. 06, 2016 Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”) announced today that it 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 the Company’s three largest shareholders, for the purchase of an aggregate of up to $125 million of Series A Preferred Stock of the Company at a price of $4.85 per share. 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 the Company’s common stock at a conversion price of $4.85 per share, subject to certain adjustments, upon receipt of approval of such conversion by the Company’s shareholders. The sale of Series A Preferred Stock is expected to fulfill conditions under previously disclosed commitment letters from the Company’s lenders for a new $400 million credit facility and certain amendments to the Company’s existing $98 million credit facility. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The Series A Preferred Stock referenced in this press release has not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Genco Shipping & Trading Limited press release |
