Gener8 Maritime, Inc. Announces Senior Secured Credit Facility to Fund Up To $963.7 Million of its Korean VLCC Newbuilding Program and a Senior Secured Credit Facility of $581 Million to Refinance Their Current Fleet (PR Newswire)

NEW YORK, Sept. 9, 2015 /PRNewswire/ — Gener8 Maritime, Inc. (NYSE: GNRT) (“Gener8 Maritime”), a leading U.S.-based provider of international seaborne crude oil transportation services, today announced that it has entered into a senior secured credit facility for up to $963.7 million of debt financing for its VLCC newbuilding program to be drawn in connection with the deliveries of the vessels.  The company today has additionally announced the refinancing of its previous senior secured credit facilities with Nordea Bank Finland.  The refinancing facility provides $581.0 million in term loans, which were drawn on September 8, 2015.       

Gener8 Maritime’s Chairman, Peter Georgiopoulos, commented, “These agreements represent a key strategic milestone for our company as these financing commitments are expected to complete the funding for our 15 Korean ECO VLCC newbuildings, with no expected need to raise additional debt or equity as we take delivery of these newbuildings.” Gener8 Maritime expects to enter into a separate credit facility to complete the funding for its 6 Chinese newbuildings.  

The Korean newbuild facility has four separate tranches.  A $282.0 million tranche of term loans will be provided by a syndicate of commercial lenders, a $139.7 million tranche of term loans will be fully guaranteed by The Export-Import Bank of Korea (“KEXIM”), a $197.4 million tranche of term loans will be provided by KEXIM, and a $344.6 million tranche will be insured by Korea Trade Insurance Corporation (“K-Sure”).  Pursuant to the Korean newbuild facility, the debt financing will be secured by Gener8 Maritime’s 15 Korean VLCC newbuildings and will have a blended margin over LIBOR across all tranches of approximately 2.33% when fully drawn.  The weighted average amortization profile of the Korean newbuild facility will be approximately 12.9 years when fully drawn.

Leonidas Vrondissis, Gener8 Maritime’s Chief Financial Officer, added, “With the financing for our 15 Korean ECO VLCC newbuilds complete and our existing senior secured credit facilities refinanced, the company is well positioned to focus on the deliveries of these newbuilds and to continue to execute upon our strategy laid out during our IPO. We believe that the ability to raise over $1.5 billion in financing demonstrates the commitment and support we have from our lenders and their belief in the prospects of our industry.”

The loans under the refinancing facility will mature on September 3, 2020 and bear interest at a rate per annum based on LIBOR plus a margin of 3.75% per annum.  The refinancing facility replaces two existing senior secured credit facilities with an aggregate outstanding principal amount of $656.3 million.  The refinancing facility is secured by 25 of the Gener8 Maritime’s vessels currently on the water.

About Gener8 Maritime

Gener8 Maritime has a fully-delivered owned fleet of 46 vessels. Gener8’s owned fleet is comprised of 21 VLCC newbuildings and 25 vessels on the water consisting of 7 VLCCs, 11 Suezmaxes, four Aframaxes, two Panamax tankers, and one Handymax tanker, with a total carrying capacity of over 10 million deadweight tons, and average age on a DWT basis of less than 6 years upon delivery of the newbuildings. Gener8 Maritime is incorporated under the laws of the Marshall Islands and headquartered in New York.

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. These forward-looking statements are based on management’s current expectations and observations. Included among the factors that, in the view of Gener8 Maritime, Inc. (the “Company”), could cause actual results to differ materially from the forward-looking statements contained in this press release are the following: (i) sourcing, completion and funding of financing on acceptable terms; (ii) changes in the values of the Company’s vessels, newbuildings or other assets, (iii) loss or reduction in business from the Company’s significant customers; (iv) the failure of the Company’s significant customers, vendors, service providers, pool managers or technical managers to perform their obligations owed to the Company; (v) the Company’s failure, or the failure of the commercial managers of any pools in which the Company’s vessels participate, to successfully implement a profitable chartering strategy; (vi) a material decline or prolonged weakness in rates in the tanker market; (vii) greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; (viii) changes in rules and regulations applicable to the tanker industry; (ix) actions taken by governmental or regulatory authorities; (x) increases in operating or other costs; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company’s agreements to acquire vessels and existing and contemplated financing arrangements; (xii) financial market conditions; (xiii) the Company’s ability to comply with the covenants and conditions under the Company’s debt obligations; (xiv) any negative perception of the Company’s Chapter 11 bankruptcy reorganization in 2012 by investors, customers or other counterparties; (xv) the impact of electing to take advantage of certain exemptions applicable to emerging growth companies and (xvi) other factors listed from time to time in the Company’s filings with the SEC, including without limitation, the Company’s prospectus dated June 24, 2015, filed with the SEC pursuant to rule 424(b) of the Securities Act on June 25, 2015, and the Company’s quarterly report on Form 10-Q for the three months ended June 30, 2015, which are accessible on the SEC’s website at and which may be obtained by contacting the Company’s investor relations department via the Company’s website Gener8 Maritime, Inc. does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events, or otherwise.

SOURCE Gener8 Maritime, Inc.

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