Genco Shipping plans to price $100 million five-year convertibles to yield 4.5%-5%, up 20%-25%

By Rebecca Melvin

New York, July 21 - Genco Shipping & Trading Ltd. plans to price $100 million of five-year convertible senior notes that were talked to yield 4.5% to 5% with an initial conversion premium of 20% to 25%. Final pricing is expected after the close of markets Wednesday, according to a syndicate source.

There is a greenshoe of up to $15 million of additional notes for the registered offering.

Genco also plans to offer 2.82 million shares of common stock, with a greenshoe of 423,000 shares.

The offerings are not contingent on each other.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC are joint bookrunners for the offerings, with Credit Agricole Securities (USA) Inc. and DVB Capital Markets LLC acting as co-managers for the offerings.

Proceeds from both offerings will be used to fund a portion of the purchase price for Genco's previously announced acquisitions of 13 drybulk vessels from Bourbon SA and five drybulk vessels from affiliates of Metrostar Management Corp., as well as for general corporate purposes.

There is contingent conversion at a price hurdle of 130%. They are convertible into cash, shares of Genco, or a combination, at the option of Genco.

New York-based Genco transports iron ore, coal, grain, steel products and other drybulk cargoes.

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