NEW YORK, Oct. 27, 2016 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (the “Company”) announced today that it has entered into an agreement with certain investors for the purchase of Series A Convertible Preferred Stock (the “Series A Preferred Stock”) of the Company in an aggregate amount of $38.6 million at a price of $4.85 per share. Such investors include affiliates of the Company’s three largest shareholders as well as a number of other investors. The Series A Preferred Stock has a liquidation preference of $4.85 per share and will mandatorily convert into shares of the Company’s common stock at a conversion price of $4.85 per share, subject to certain adjustments, upon receipt of approval of such conversion by the Company’s shareholders. This sale of Series A Preferred Stock, coupled with the sale of Series A Preferred Stock to the Company’s three largest shareholders as announced on October 6, 2016, is expected to fulfill a condition requiring the Company to raise equity under previously disclosed commitment letters for a new $400 million credit facility and certain amendments to the Company’s existing $98 million credit facility, each of which are subject to customary conditions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The Series A Preferred Stock referenced in this press release has not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
“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. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management’s current expectations and observations and include factors that, in the Company’s view, could cause actual results to differ materially from the forward-looking statements contained in this press release. Included among the important factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this press release are the fulfillment of customary closing conditions in the agreements referenced above and other factors listed from time to time in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2015 and its subsequent reports on Form 10-Q and Form 8-K. There can be no assurance that the foregoing conditions under such agreements will be met.