Genco Shipping & Trading said banks that are offering to help refinance its outstanding debt have agreed to push back the deadline by two weeks for the bulker owner to raise fresh equity.
Genco needs to raise $125m in equity as a condition for closing on a new $400m loan to refinance Genco’s existing debt. It said it has been able to get commitments for half that amount from Centerbridge Partners, Strategic Value Partners and Apollo Global Management.
The Peter Georgiopoulos-led company originally said it had until 14 September to raise the new capital. But it said lenders have now agreed to stretch the deadline until 30 September.
The John Wobensmith-led company received a commitment earlier in June for a $400m term loan to refinance six existing term loans and credit facilities with some $446m in outstanding principal.
The refinancing comes from a syndicate including Nordea Bank, SEB, DVB Bank, ABN Amro, Credit Agricole, Deutsche Bank, BNP Paribas and CIC, many of which provided Genco’s existing loan facilities.
The refinancings, which mature in 2021, would carry an interest rate of LIBOR plus 375 basis, with an option to convert to a lower interest rate. Genco would also get deferment of interest payments totalling $127m through 2018.
