Underwriters join party

Genco Shipping & Trading is on course for a $182.5m jackpot after its underwriters agreed to take up options on a notes offering.

New York-listed Genco says the notes portion of its equity issue will now rake in $125m, while its simultaneous share offer could be worth a further $57.5m.

As TradeWinds reported previously the double equity issue is part of a wider package secured by the Peter Georgiopoulos–led outfit to pay for the arrival of 18 new bulkers.

Genco has also bagged loans of $353m linked to the purchase of the ships from Bourbon and Metrostar.

Deutsche Bank., BNP Paribas and Credit Suisse are acting as joint book-running managers for the offerings. Credit Agricole, DVB Capital Markets and Knight Capital Markets are acting as co-managers for the offerings, which close tomorrow.

In May Georgiopoulos acquired all of Metrostar’s bulkers with Genco paying $166.3m for five handysizes and spin-off Baltic Trading shelling out $99.8m for a further three handies.

Only days later Genco snapped up 16 supramax bulkers from Bourbon for $545m, three of which have been sold on to one of Georgiopoulos’ private companies.

Georgiopoulos-led General Maritime paid $620m to take five VLCCs and two suezmax newbuildings from Metrostar back in May. It raised $195.6m from shareholders to help fund the deal.

However, its underwriters declined to take up options worth a potential $31m, leaving the tanker owner with a $45m funding gap.

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