Friday, February 26, 2010

New Dry Bulk Shipping Company Launches In New York

Genco Subsidiary to Commence Trading
Shipping News Feature

US - Genco Shipping & Trading Limited, owners of 35 dry bulk carriers carrying freight world wide have announced the launch of their wholly owned subsidiary company Baltic Trading Ltd., a Marshall Islands registered company, which will enter a long term management agreement with its principals to follow the purchase of two new Capesize plus four one year old Supramax vessels.

Baltic Trading will focus on the dry bulk industry spot market and its initial public offering is estimated by Genco to be between $14 and $16 per share. The company announced today it has filed an amendment to its registration statement with the Securities and Exchange Commission (the "SEC") for a proposed initial public offering of its common stock, par value $0.01 per share (the "Offering"). The Offering is currently expected to include 16,300,000 shares of common stock (18,745,000 shares of common stock if the underwriters exercise their over-allotment option in full). Baltic Trading's common stock has been approved for listing on the New York Stock Exchange under the symbol "BALT."

Baltic Trading plans to use the proceeds of the offering, together with a $75 million capital contribution from Genco, to acquire its initial fleet and for working capital and general corporate purposes, which may include future vessel purchases, Genco will provide commercial, technical, administrative and strategic services to Baltic Trading.

A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from Morgan Stanley & Co. Incorporated by e-mailing prospectus@morganstanley.com, or from Dahlman Rose & Company, LLC by calling (212) 702-4521 or by e-mailing prospectus@dahlmanrose.com.

Genco reported annual figures two days ago showing increased fleet size helping to offset poorer annual figures caused principally, the company says, by the universal fall in charter rates.