Gener8 Maritime, Inc. Announces Senior Secured Credit Facility to Fund Up To $259.6 Million of its Chinese VLCC Newbuilding Program

Dec 07, 2015, 06:00 ET from Gener8 Maritime, Inc.

NEW YORK, Dec. 7, 2015 /PRNewswire/ -- Gener8 Maritime, Inc. (NYSE: GNRT) ("Gener8 Maritime"), a leading U.S.-based provider of international seaborne crude oil transportation services, today announced that it has entered into a senior secured credit facility for up to $259.6 million of debt financing for its Chinese VLCC newbuilding program to be drawn in connection with the deliveries of the first four of the company's six Chinese new buildings.   Financing is being provided by Citibank, N.A. ("Citibank"), The Export-Import Bank of China ("CEXIM"), and the Bank of China ("BOC").

Gener8 Maritime's Chairman, Peter Georgiopoulos, commented, "We are pleased to complete the financing for the first four vessels of our Chinese ECO VLCC newbuilding program.  We expect to close on financing for the remaining two vessels in 2016. These agreements represent a key strategic milestone for our company as we continue to expand our fleet."  

The Chinese newbuild facility closed on November 30, 2015, with the first drawdown being used to refinance the October 21, 2015 term loan facility with Citibank.   The facility has a margin over LIBOR of 2.0%, and a 15 year amortization profile.  Pursuant to the Chinese newbuild facility, the debt financing will be secured by 4 Gener8 Maritime Chinese VLCC newbuildings, the Gener8 Strength, Gener8 Supreme, Gener8 Success and Gener8 Andriotis.  

Leonidas Vrondissis, Gener8 Maritime's Chief Financial Officer, added, "We believe the company is well positioned to focus on the deliveries of these newbuilds and to continue to execute upon our strategy laid out during our IPO. We believe that the ability to raise close to $2.0 billion in financing during 2015 demonstrates the commitment and support we have from our lenders and their belief in the prospects of our industry."

About Gener8 Maritime

As of November 1, 2015, Gener8 Maritime has a fully-delivered fleet of 47 vessels, including one time-chartered-in VLCC. Gener8's owned fleet is comprised of 18 VLCC newbuildings and 28 vessels on the water consisting of 10 VLCCs, 11 Suezmaxes, four Aframaxes, two Panamax tankers, and one Handymax tanker, with a total carrying capacity of over 11.1 million deadweight tons ("DWT"), and average age on a DWT basis of less than 6 years upon delivery of the newbuildings. Gener8 Maritime is incorporated under the laws of the Marshall Islands and headquartered in New York.

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. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the view of Gener8 Maritime, Inc. (the "Company"), could cause actual results to differ materially from the forward-looking statements contained in this press release are the following: (i) sourcing, completion and funding of financing on acceptable terms; (ii) changes in the values of the Company's vessels, newbuildings or other assets, (iii) loss or reduction in business from the Company's significant customers; (iv) the failure of the Company's significant customers, vendors, service providers, pool managers or technical managers to perform their obligations owed to the Company; (v) the Company's failure, or the failure of the commercial managers of any pools in which the Company's vessels participate, to successfully implement a profitable chartering strategy; (vi) a material decline or prolonged weakness in rates in the tanker market; (vii) greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; (viii) changes in rules and regulations applicable to the tanker industry; (ix) actions taken by governmental or regulatory authorities; (x) increases in operating or other costs; (xi) the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire vessels and existing and contemplated financing arrangements; (xii) financial market conditions; (xiii) the Company's ability to comply with the covenants and conditions under the Company's debt obligations; (xiv) any negative perception of the Company's Chapter 11 bankruptcy reorganization in 2012 by investors, customers or other counterparties; (xv) the impact of electing to take advantage of certain exemptions applicable to emerging growth companies and (xvi) other factors listed from time to time in the Company's filings with the SEC, including without limitation, the Company's prospectus dated June 24, 2015, filed with the SEC pursuant to rule 424(b) of the Securities Act on June 25, 2015, and the Company's quarterly report on Form 10-Q for the three months ended June 30, 2015, which are accessible on the SEC's website at and which may be obtained by contacting the Company's investor relations department via the Company's website Gener8 Maritime, Inc. does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events, or otherwise.

SOURCE Gener8 Maritime, Inc.