Drybulk Shipping Line Buy Another Supramax

US - Genco Shipping & Trading Limited have announced that it has taken delivery of the Genco Lorraine, a 2009-built Supramax vessel and the first of the thirteen ships it agreed to purchase from Setaf SAS, a wholly owned subsidiary of Bourbon SA, as detailed in our article in June.

The Company also announced that it has reached an agreement to enter into a time charter for the Genco Lorraine with Olam International Limited for 23 to 25 months at a rate of $18,500 per day, less a 5% third party brokerage commission. The time charter for the Genco Lorraine is expected to commence on or about July 31, 2010 and is subject to the completion of definitive documentation.

The Company used its available cash to pay the remaining balance of $29.16 million for the Genco Lorraine. On July 16, 2010, the Company entered into a commitment letter for a $253 million senior secured term loan facility and, upon the closing of this credit facility, intends to use the credit facility to refund $20 million associated with the purchase of this vessel to the Company.

Genco currently owns a fleet of 37 drybulk vessels, consisting of nine Capesize, eight Panamax, five Supramax, six Handymax and nine Handysize vessels, with an aggregate carrying capacity of approximately 2,991,000 dwt. After the expected delivery of four Handysize vessels and twelve Supramax vessels 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 3,813,000 dwt.

This fleet excludes ships owned by Genco’s subsidiary company Baltic Trading Limited. Genco simultaneously announced a Second Quarter 2010 Conference Call and Webcast for Tuesday, August 10, 2010 at 8:30 a.m. Eastern Time.