Republic
of the Marshall Islands
|
000-28506
|
98-043-9758
|
(State
or Other Jurisdiction
of
incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer
Identification
No.)
|
299
Park Avenue
20th
Floor
(Address
of Principal Executive Offices)
|
10171
(Zip
Code)
|
r |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
r |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
r |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
|
r |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
|
·
|
As
referenced in Item 1.01 above, the Company expects to enter
into a new
credit facility in the near future. Principal terms of such
facility include a maximum borrowing amount of up to $1.377
million, a
term of ten years, interest on borrowed amounts payable at
LIBOR plus
0.80% annually for the first five years and 0.85% thereafter,
and a
commitment fee of up to 0.25% annually on unused amounts (0.20%
prior to
earlier of close of syndication or September 30, 3007). The
Company expects to borrow approximately $1.1 billion to purchase
the
vessels referenced in Item 1.01, $206 million to retire its
existing $550
million credit facility, and $77 million to retire the existing
$155
million short-term line. The Company expects to realize $3.6
million of deferred financing expenses in the third quarter
of 2007 for
retirement of the $550 million credit facility.
|
·
|
As
previously disclosed, the Company has been acquiring shares of
the capital
stock of Jinhui Shipping and Transportation Limited
(“Jinhui”). To date, the Company has purchased a total of
14,180,400 shares of Jinhui’s capital stock or 16.87% of the total
outstanding, a portion of which have been financed with $77 million
in
borrowings under its short-term line. The Company has entered
into foreign currency swaps to hedge foreign exchange volatility
on the
purchase price.
|
·
|
The
Company is updating its estimated breakeven levels for the second
quarter
ended June 30, 2007 as follows: projected Daily Vessel
Operating Expenses are approximately $3,735 per day per
vessel; projected G&A expenses are approximately $1,750 per
day per vessel; and projected interest expense is
approximately $2,360 per day per vessel. Unscheduled
off-hire consists of 28 days for the Genco Trader, or approximately
$720,000; 6 days for the Genco Propserity, or approximately $145,000;
and
other unscheduled off-hire of $265,000. We believe that any
unscheduled offhire over 14 days will be reimbursed by our insurance
coverage, but revenue is not recognized until the insurance claim
has been
realized.
|
Exhibit
No.
|
Description
|
|
10.1
|
Master
Agreement by and between Genco Shipping & Trading Limited and
Metrostar Management Corporation.
|
|
99.1
|
Press
Release dated July 18, 2007.
|
/s/
John
C.
Wobensmith
John
C.
Wobensmith
|
Chief
Financial Officer, Secretary and Treasurer
(Principal Financial and Accounting
Officer)
|
Exhibit
No.
|
Description
|
|
10.1
|
Master
Agreement by and between Genco Shipping & Trading Limited and
Metrostar Management Corporation.
|
|
99.1
|
Press
Release dated July 18, 2007.
|