Genco Shipping & Trading has finally sealed $525m in new financing that is aimed at repositioning the New York bulker owner to outlast a gloomy market and take advantage of an eventual upturn.

The company said it closed on a $400m credit facility, which will refinance much of Genco’s existing debt, and completed the sale of $125m in preferred shares. The agreement also brings amendments to a $98m existing loan and a credit facility with ABN Amro.

“Genco’s recent steps to strengthen its balance sheet represent a significant milestone for the company,” said Wobensmith.

“We have significantly enhanced our financial flexibility and bolstered our ability to manage the current market downturn. Importantly, we have also repositioned Genco to thrive in a recovery and capitalise on the company’s leading dry-bulk platform.”

New York-listed Genco says the new facility brings improved terms compared with the loans it replaces, including no significant fixed amortisation payments until 2019 and the elimination of collateral maintenance and maximum leverage covenants.

And the equity injection helps improve its balance sheet and its liquidity, said Genco, which owns 59 ships.

The new loan has a rate of 3.75% above Libor and it matures in November 2021, though some of the interest rate can be converted into principal through the end of 2018.

The syndicate of banks providing the facility is made up of Nordea Bank, Skandinaviska Enskilda Banken, DVB Bank, ABN Amro, Credit Agricole, Deutsche Bank, Credit Industriel et Commercial and BNP Paribas.

As TradeWinds has previously reported, the $125m in preferred shares were mostly sold to Genco’s three largest shareholders: financial firms Centerbridge Partners, Strategic Value Partners & Apollo Global Management.

“We appreciate the strong and continued support we have received from our investors and our banking group, which we believe underscores the company’s industry leadership and strong future prospects,” said Wobensmith.