Genco Shipping Buying 16 Ships For $545M

Shipping & trading firm will buy 16 Supramax dry bulk vessels for $545 million with hopes of capitalizing on strong demand for commodities in developing countries.

NEW YORK (AP) -- Genco Shipping & Trading will buy 16 Supramax dry bulk vessels for $545 million with hopes of capitalizing on strong demand for commodities in China, India and other developing countries.

The company said it will keep 13 of the ships and sell three to Maritime Equity Partners LLC, a company controlled by Genco Chairman Peter Georgiopoulos, for $105 million. The ships will be delivered by the first quarter of 2011.

It is Genco's second acquisition of ships this month. The company announced on June 9 that it would buy five vessels from the Metrostar group of companies.

The deals give Genco 53 dry bulk vessels.

Genco said it will finance the deal using bank debt for about 60 percent of the purchase price, cash on hand and up to $150 million of capital markets financing.

Genco transports iron ore, coal, grain, steel products and other cargo worldwide.

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