Jan 26 (Reuters) - Dry bulk carrier Genco Shipping & Trading Ltd said it will suspend its dividend and share buyback program as part of an amended credit agreement, sending its shares down 13 percent.
Under the terms of the amended 10-year $1.4 billion credit facility, the collateral maintenance requirement will be waived until it is in a position to satisfy the covenant and certain other conditions, the company said.
The amendment places no further restrictions on uses of the company's cash, and it would be able to borrow the undrawn portion of the loan during the waiver period, Genco said.
The company plans to fund the three remaining Capesize newbuildings expected to be delivered in 2009 with the undrawn portion of its credit facility as well as cash flow from operations.
Currently, about 67 percent of its fleet's estimated available days are secured on contracts for the remainder of 2009, the company said.
Shares of Genco were trading at $13.26 after the bell. They closed at $15.31 Monday on the New York Stock Exchange.
(Reporting by Sakthi Prasad in Bangalore; Editing by Deepak Kannan) Keywords: GENCOSHIPPING/ (sakthi.prasad@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sakthi.prasad.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Under the terms of the amended 10-year $1.4 billion credit facility, the collateral maintenance requirement will be waived until it is in a position to satisfy the covenant and certain other conditions, the company said.
The amendment places no further restrictions on uses of the company's cash, and it would be able to borrow the undrawn portion of the loan during the waiver period, Genco said.
The company plans to fund the three remaining Capesize newbuildings expected to be delivered in 2009 with the undrawn portion of its credit facility as well as cash flow from operations.
Currently, about 67 percent of its fleet's estimated available days are secured on contracts for the remainder of 2009, the company said.
Shares of Genco were trading at $13.26 after the bell. They closed at $15.31 Monday on the New York Stock Exchange.
(Reporting by Sakthi Prasad in Bangalore; Editing by Deepak Kannan) Keywords: GENCOSHIPPING/ (sakthi.prasad@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sakthi.prasad.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.