NEW YORK, Oct. 12 /PRNewswire/ -- Genco Shipping & Trading Limited today announced that it has reached an agreement to enter into a time charter for the Genco Tiberius, a 2007-built Capesize vessel, with Cargill International S.A. for 11 to 14.5 months at a rate of $31,000 per day, less a 5% third-party brokerage commission.
The time charter for the Genco Tiberius is expected to commence on or about October 14, 2010 and is subject to the completion of definitive documentation.
The following table reflects the current employment of Genco's current fleet:
Vessel(1) Charterer Charter Expiration --------- --------- (2) ----------- Year Built ----- Capesize Vessels ---------------- Cargill International Genco Augustus 2007 S.A. December 2010 Cargill International September Genco Tiberius 2007 S.A. 2011 Cargill International Genco London 2007 S.A. October 2010 Cargill International September Genco Titus 2007 S.A. 2011 Genco Cargill International Constantine 2008 S.A. August 2012 Cargill International Genco Hadrian 2008 S.A. October 2012 Morgan Stanley Capital Genco Commodus 2009 Group Inc. June 2011 Cargill International Genco Maximus 2009 S.A. November 2010 Cargill International Genco Claudius 2010 S.A. November 2010 Panamax Vessels --------------- D/S Norden A/S, Genco Beauty 1999 Copenhagen April 2011 Swissmarine Services Genco Knight 1999 S.A. March 2011 Genco Leader 1999 Klaveness Chartering December 2010 Global Maritime Genco Vigour 1999 Investments Ltd. November 2010 Genco Acheron 1999 Global Chartering Ltd July 2011 (a subsidiary of ArcelorMittal Group) Hanjin Shipping Co., Genco Surprise 1998 Ltd. December 2010 COSCO Bulk Carriers Genco Raptor 2007 Co., Ltd. April 2012 Genco Thunder 2007 Klaveness Chartering November 2010 Supramax Vessels ---------------- Pacific Basin Genco Predator 2005 Chartering Ltd. April 2011 Hyundai Merchant Marine Genco Warrior 2005 Co. Ltd. November 2010 Pacific Basin Genco Hunter 2007 Chartering Ltd. February 2011 September Genco Cavalier 2007 MUR Shipping B.V. 2011 Genco Lorraine 2009 Olam International Ltd. June, 2012 Genco Loire 2009 Oldendorff GMBH and Co. August, 2011 Samsun Logix Genco Aquitaine 2009 Corporation March, 2011 Genco Ardennes 2009 Klaveness Chartering August, 2012 November, Genco Auvergne 2009 Oldendorff GMBH and Co. 2010 November, Genco Bourgogne 2010 Setaf-Saget SAS 2011 December, Genco Brittany 2010 Oldendorff GMBH and Co. 2010 December, Genco Languedoc 2010 Setaf-Saget SAS 2010 Genco Normandy 2007 STX Pan Ocean Co. Ltd. October, 2010 Rizzo-Bottiglieri-de November, Genco Picardy 2005 Carlini Armatori SPA 2010 December, Genco Provence 2004 Setaf-Saget SAS 2011 Genco Pyrenees 2010 Setaf-Saget SAS July, 2011 Handymax Vessels ---------------- Genco Success 1997 Korea Line Corporation February 2011 Louis Dreyfus Genco Carrier 1998 Corporation March 2011 Pacific Basin Genco Prosperity 1997 Chartering Ltd June 2011 Hyundai Merchant Marine Genco Wisdom 1997 Co. Ltd. February 2011 Genco Marine 1996 STX Pan Ocean Co. Ltd. April 2011 Global Maritime Genco Muse 2001 Investments Ltd. December 2010 Handysize Vessels --------- Genco Explorer 1999 Lauritzen Bulkers A/S January 2011 Genco Pioneer 1999 Lauritzen Bulkers A/S January 2011 Genco Progress 1999 Lauritzen Bulkers A/S October 2011 Genco Reliance 1999 Lauritzen Bulkers A/S October 2011 Genco Sugar 1998 Lauritzen Bulkers A/S October 2011 Pacific Basin Genco Charger 2005 Chartering Ltd. November 2010 Pacific Basin Genco Challenger 2003 Chartering Ltd. November 2010 Pacific Basin Genco Champion 2006 Chartering Ltd. December 2010 Cargill International Genco Ocean 2010 S.A. June, 2013 Cargill International February, Genco Bay 2010 S.A. 2013 Vessels to be Delivered ------------- Supramax Vessels ---------------- 2011 Genco Rhone (11) Handysize Vessels --------- 34.5-37.5 2011 Cargill International months after Genco Avra (11) S.A. delivery 45.5-50.5 2011 Cargill International months after Genco Mare (11) S.A. delivery 34.5-37.5 2011 Cargill International months after Genco Spirit (11) S.A. delivery Vessel(1) Cash Daily Net --------- Rate (3) Revenue -------- Daily Rate (4) ----- Capesize Vessels ---------------- Genco Augustus 39,000 Genco Tiberius 31,000 Genco London 26,000 Genco Titus 45,000(5) 46,250 Genco Constantine 52,750(5) Genco Hadrian 65,000(5) Genco Commodus 36,000 Genco Maximus 27,000 Genco Claudius 36,000 Panamax Vessels --------------- Genco Beauty 27,000 Genco Knight 25,000 Genco Leader 20,000 Genco Vigour 24,000 Genco Acheron 55,250 Genco Surprise 42,100 Genco Raptor 52,800 Genco Thunder 22,250 Supramax Vessels ---------------- Genco Predator 22,500 Genco Warrior 38,750 Genco Hunter 21,750 Genco Cavalier 19,200 Genco Lorraine 18,500 Genco Loire 20,250 Genco Aquitaine 21,250 (9) (8) Genco Ardennes 19,000 Genco Auvergne 22,000 Genco Bourgogne 19,900 Genco Brittany 21,000 Genco Languedoc 24,250 Genco Normandy 20,000 Genco Picardy 17,100 (8) Genco Provence 20,250 Genco Pyrenees 19,000 Handymax Vessels ---------------- Genco Success 33,000(6) Genco Carrier 37,000 Genco Prosperity 37,000 Genco Wisdom 34,500 Genco Marine 20,000 Genco Muse 17,750 Handysize Vessels --------- Genco Explorer Spot(7) Genco Pioneer Spot(7) Genco Progress Spot(7) Genco Reliance Spot(7) Genco Sugar Spot(7) Genco Charger 24,000 Genco Challenger 24,000 Genco Champion 24,000 Genco Ocean $8,500-$13,500 with 50% profit sharing (10) Genco Bay $8,500-$13,500 with 50% profit sharing (10) Vessels to be Delivered ------------- Supramax Vessels ---------------- Genco Rhone Handysize Vessels --------- Genco Avra $8,500-$13,500 with 50% profit sharing (10) BHSI plus 15% Genco Mare (12) Genco Spirit $8,500-$13,500 with 50% profit sharing (10) (1) References to Genco's vessels and fleet in this press release exclude vessels owned by Genco's subsidiary, Baltic Trading Limited. (2) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Except for the Genco Titus, Genco Constantine, and Genco Hadrian under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. The charterer of the Genco Titus and Genco Hadrian has the option to extend the charter for a period of one year. The Genco Constantine has the option to extend the charter for a period of eight months. (3) Time charter rates presented are the gross daily charterhire rates before third-party commissions generally ranging from 1.25% to 6.25%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents' fees and canal dues. (4) For the vessels acquired with a below-market time charter rate, the approximate amount of revenue on a daily basis to be recognized as revenues is displayed in the column named 'Net Revenue Daily Rate' and is net of any third-party commissions. Since these vessels were acquired with existing time charters with below-market rates, Genco allocated the purchase price between the respective vessels and an intangible liability for the value assigned to the below-market charter-hire. This intangible liability is amortized as an increase to voyage revenues over the minimum remaining terms of the applicable charters. The minimum remaining term for the Genco Titus on September 26, 2011, at which point the respective liabilities were or will be amortized to zero and the vessels began or will begin earning the 'Cash Daily Rate.' For cash flow purposes, Genco will continue to receive the rate presented in the 'Cash Daily Rate' column until the charter expires. (5) The charter expiration dates presented represent the earliest dates that the charters may be terminated in the ordinary course, in accordance with their respective terms. Except for the Genco Titus, Genco Constantine and Genco Hadrian, under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. The charterer of the Genco Titus and Genco Hadrian has the option to extend the charter for a period of one year. The Genco Constantine has the option to extend the charter for a period of eight months. (6) We extended the time charter for an additional 35 to 37.5 months at a rate of $40,000 per day for the first 12 months, $33,000 per day for the following 12 months, $26,000 per day for the next 12 months and $33,000 per day thereafter less a 5% third-party commission. In all cases, the rate for the duration of the time charter will average $33,000 per day. For purposes of revenue recognition, the time charter contract is reflected on a straight- line basis at approximately $33,000 per day for 35 to 37.5 months in accordance with U.S. GAAP. (7) We have reached an agreement to enter these vessels into the LB/ IVS Pool whereby Lauritzen Bulkers A/S acts as the pool manager. We can withdraw up to two vessels with three months' notice and the remaining three vessels with 12 months' notice. (8) Since these vessels were acquired with existing time charters with market or below-market rates. For the time charters that are below-market, Genco is in the process of allocating the purchase price between the respective vessels and an intangible liability for the value assigned to the below-market charter-hire. This intangible liability will be amortized as an increase to voyage revenues over the minimum remaining terms of the applicable charters, at which point the respective liabilities will be amortized to zero and the vessels will begin earning the 'Cash Daily Rate.' For cash flow purposes, Genco will continue to receive the rate presented in the 'Cash Daily Rate' column until the charter expires. (9) A novation agreement was signed between Genco and Samsun Logix Corporation at a rate of $20,000 per day, less a 5% third party brokerage commission, with a minimum expiration of March 2011 and a maximum expiration of May 2011. The charter includes a 50% hire- based profit sharing component on the difference between the rate mentioned above and the rate that the charterer has sub-chartered the vessel at for the remainder of the contract's life. The gross effective rate for the duration of this charter is approximately $21,250 per day. (10) The rate for the spot market-related time charter will be linked with a floor of $8,500 and a ceiling of $13,500 daily with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate will be based on 115% of the average of the daily rates of the Baltic Handysize Index, or BHSI, as reflected in daily reports. Hire will be paid every 15 days in advance net of a 5.00% third party brokerage commission. (11) Built & delivery dates for vessels being delivered in the future are estimates based on guidance received from the sellers and/or the respective shipyards. (12) The rate for the spot market-related time charter will be based on 115% of the average of the daily rates of the BHSI, as reflected in daily reports. Hire will be paid every 15 days in advance net of a 5.00% third party brokerage commission. About Genco Shipping & Trading Limited
Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Genco currently owns a fleet of 49 drybulk vessels, consisting of nine Capesize, eight Panamax, sixteen Supramax, six Handymax and ten Handysize vessels, with an aggregate carrying capacity of approximately 3,649,000 dwt. After the expected delivery of three remaining Handysize vessels and one remaining Supramax vessel that Genco has agreed to acquire and retain, Genco will own a fleet of 53 drybulk vessels, consisting of nine Capesize, eight Panamax, seventeen Supramax, six Handymax, and thirteen Handysize vessels with a total carrying capacity of approximately 3,812,000 dwt. References to Genco's vessels and fleet in this press release exclude vessels owned by Baltic Trading Limited, a subsidiary of Genco.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements with respect to the commencement of time charters and are based on management's current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: the completion of definitive documentation with respect to time charters; and other factors listed from time to time under "Risk Factors" and other sections of our public filings with the Securities and Exchange Commission including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and its subsequently filed reports on Form 10-Q and Form 8-K.
Genco Shipping & Trading Limited
CONTACT: John C. Wobensmith, Chief Financial Officer, Genco Shipping &
Trading Limited, +1-646-443-8555
