kl09017.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the
Securities
Exchange Act of 1934
Date
of
Report (Date of earliest event reported): September 7,
2007
GENCO
SHIPPING & TRADING LIMITED
(Exact
Name of Registrant as Specified in Charter)
|
Republic
of the Marshall Islands
|
000-28506
|
98-043-9758
|
|
(State
or Other Jurisdiction
of
incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer
Identification
No.)
|
|
299
Park Avenue
20th
Floor
(Address
of Principal Executive Offices)
|
|
10171
(Zip
Code)
|
Registrant’s
telephone number, including area code: (646) 443-8550
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
| r |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
| r |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| r |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
| r |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Item
2.03. Creation Of A Direct Financial Obligation Or
An Obligation Under An Off-Balance Sheet Arrangement Of A
Registrant
Genco
Shipping & Trading Limited (the “Company”) entered into an interest rate
swap transactions on September 7, 2007 with DnB NOR Bank ASA, New York Branch
(the “Counterparty”). The Counterparty has underwritten the Company’s
current $1.4 billion credit facility entered into on July 20, 2007 and is also
acting as Lead Arranger,
Bookrunner, and Administrative Agent. The Company and the
Counterparty are also parties to seven interest rate swap transactions for
an
aggregate notional amount of $556,233,000 as described in the Company’s
quarterly report on Form 10-Q filed on August 9, 2007 and subsequent current
reports on Form 8-K. The Company entered into the current interest
rate swap transaction to mitigate the Company’s floating rate interest risk on
an aggregate of $75,000,000 of the Company’s debt that is currently or is
expected to be outstanding under its $1.4 billion credit facility.
The interest rate swap has an effective date of October 1, 2007 and a
termination date of December 31, 2009. The Company is required to
make certain quarterly fixed rate payments to the Counterparty calculated on
a
notional amount of $75,000,000, while the Counterparty is obligated to make
certain quarterly floating rate payments to the Company referencing the same
notional amount. The interest rate swap transaction effectively fixes
the annual interest rate payable on $75,000,000 of the Company’s debt which may
exist to 4.56% plus the applicable margin under the $1.4 billion credit
facility. Notwithstanding the terms of the interest rate swap
transaction, the Company is ultimately obligated for all amounts due and payable
under the credit facility. The Company may enter into additional swap
transactions in the future from time to time.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, Genco Shipping
&
Trading Limited has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENCO
SHIPPING &
TRADING LIMITED
DATE: September
10, 2007
/s/
John C.
Wobensmith
John
C. Wobensmith
Chief
Financial
Officer, Secretary and Treasurer
(Principal
Financial and Accounting Officer)