Genco Shipping greenshoe exercised, lifts convertibles to $125 million

By Marisa Wong

Madison, Wis., July 23 - Genco Shipping & Trading Ltd. announced that the underwriters of its recent offering of 5% convertible senior notes due Aug. 15, 2015 have exercised the $15 million over-allotment option in full, increasing the total size of the offering to $125 million.

As previously reported, Genco priced $110 million of five-year convertibles on Wednesday to yield 5% with an initial conversion premium of 22.5%.

Genco also sold 3,593,750 shares of common stock at $16 per share.

The gross proceeds from both offerings total approximately $182.5 million, according to a press release.

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

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.

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

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