Genco Shipping & Trading Limited Announces Equity Purchase Agreements

NEW YORK, Oct. 06, 2016 (GLOBE NEWSWIRE) — Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”) announced today that it has entered into agreements with funds or related entities managed by affiliates of Centerbridge Partners, L.P., funds or related entities managed by Strategic Value Partners, LLC or its affiliates, and funds managed by affiliates of Apollo Global Management, LLC, representing the Company’s three largest shareholders, for the purchase of an aggregate of up to $125 million of Series A Preferred Stock of the Company at a price of $4.85 per share.  The amount purchased by the foregoing investors may be reduced by up to $38.6 million in Series A Preferred Stock that may be sold in a separate private placement.  An additional $6.25 million of Series A Preferred Stock is to be issued to the foregoing investors as a commitment fee.  The Series A Preferred Stock has a liquidation preference of $4.85 per share and will mandatorily convert into shares of the Company’s common stock at a conversion price of $4.85 per share, subject to certain adjustments, upon receipt of approval of such conversion by the Company’s shareholders.  The sale of Series A Preferred Stock is expected to fulfill conditions under previously disclosed commitment letters from the Company’s lenders for a new $400 million credit facility and certain amendments to the Company’s existing $98 million credit facility.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.  The Series A Preferred Stock referenced in this press release has not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

“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. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance.  These forward-looking statements are based on management’s current expectations and observations and include factors that, in the Company’s view, could cause actual results to differ materially from the forward-looking statements contained in this press release. Included among the important factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the fulfillment of customary closing conditions in such agreements and other factors listed from time to time in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2015 and its subsequent reports on Form 10-Q and Form 8-K.  There can be no assurance that the foregoing conditions under the agreements referenced above will be met.

John C. Wobensmith
Genco Shipping & Trading Limited
(646) 443-8555

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