Genco Shipping Expands Credit Facility by $100 Million, Boosts Operational Flexibility

Genco Shipping & Trading Limited has amended its credit agreement, increasing its revolving credit facility from $500 million to $600 million and extending the maturity date to July 2030. The company aims to support its growth and operational flexibility with performance-based interest rate adjustments related to emissions targets. Genco Shipping operates a fleet of drybulk vessels, providing maritime transportation services for drybulk cargoes globally. The company's overall stock score reflects its solid financial performance and attractive valuation, with a strong dividend yield.

Genco Shipping & Trading Limited (NYSE: GNK) has significantly bolstered its financial flexibility by amending its existing revolving credit facility to $600 million, according to recent SEC filings [1]. This increase, a 50% expansion from the previous $400 million limit, was finalized on July 10, 2025, through a Fifth Amendment to the company's Credit Agreement with Nordea Bank Abp (OTC: NRDBY), New York Branch [2].

The new facility, structured entirely as a revolving credit line, provides Genco with enhanced borrowing capacity to support its asset base and general corporate purposes. The interest rate for the facility ranges between 1.75% and 2.15%, plus the Secured Overnight Financing Rate (SOFR), with adjustments based on Genco's net indebtedness to EBITDA [1]. The maturity date has been extended to July 2030, with a repayment profile set over 20 years, and no reductions in commitment required until March 31, 2027, provided the company remains in compliance with covenants [2].

The collateral maintenance covenant has been reduced from 140% to 135%, with the collateral package including all 42 vessels currently in Genco's fleet and potential future vessels. The company maintains the ability to declare and pay dividends as long as there is no event of default and financial covenants are met at the time of declaration [1].

Commitment fees for unused portions of the facility are set at 35% of the applicable interest rate margin. The new facility includes an accordion feature, allowing for an additional $300 million in borrowing capacity [2]. Genco has secured $500 million of undrawn revolver availability as of July 14, 2025, and operates with a moderate level of debt, reflected in a debt-to-capital ratio of 0.12 [1].

This expansion comes despite Genco reporting a net loss of $11.9 million for the first quarter of 2025, missing analysts' expectations. However, the company's strategic initiatives, including a $50 million share repurchase program and a continued focus on dividends and deleveraging, indicate a strong commitment to financial health and shareholder value [3].

References:

[1] https://www.investing.com/news/sec-filings/genco-shipping--trading-amends-and-upsizes-revolving-credit-facility-to-600-million-93CH-4133767
[2] https://www.marketscreener.com/quote/stock/GENCO-SHIPPING-TRADING-LI-29159922/news/Genco-Shipping-Trading-Limited-Closes-New-600-Million-Revolving-Credit-Facility-50502444/
[3] https://www.globenewswire.com/news-release/2025/07/14/3114734/37397/en/Genco-Shipping-Trading-Closes-New-600-Million-Revolving-Credit-Facility-Increasing-Borrowing-Capacity-by-50.html