Form 8K Current Report
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 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): March 29, 2006
GENCO
SHIPPING & TRADING LIMITED
(Exact
name of registrant as specified in its charter)
|
Republic
of the Marshall Islands
|
000-5142
|
98-043-9758
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Commission
file number)
|
(I.R.S.
employer
identification
no.)
|
|
299
Park Avenue, 20th
Floor
New
York, NY
(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 two interest rate
swap transactions on March 24, 2006 and March 29, 2006, respectively, with
DnB
NOR Bank ASA, New York Branch (the “Counterparty”). The Counterparty is among
the syndicate of lenders under the Company’s existing credit facility entered
into on July 29, 2005. The Company entered into the interest rate swap
transactions to mitigate the Company’s floating rate interest risk on an
aggregate of $100,000,000 of the Company’s debt that is not currently
outstanding but may exist in the future under its existing credit facility.
The
first of these interest rate swaps has an effective date of January 2, 2008
and
a termination date of January 2, 2013. The second interest rate swap has an
effective date of January 2, 2007 and a termination date of January 2, 2014.
The
Company is required to make certain quarterly fixed rate payments to the
Counterparty calculated on a notional amount of $50,000,000 for each interest
rate swap, while the Counterparty is obligated to make certain quarterly
floating rate payments to the Company referencing the same notional amount.
The
interest rate swap transactions effectively fix the annual interest rate payable
on $50,000,000 of the Company’s debt that may exist in the future to 5.075% plus
the applicable margin under the credit facility for the first swap transaction
and 5.25% plus the applicable margin under the credit facility for the second
swap transaction. Notwithstanding the terms of the interest rate swap
transactions, the Company is ultimately obligated for all amounts due and
payable under its existing credit facility. The Company may enter into
additional swap transactions in the future from time to time.
2
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: March
31, 2006 |
By: |
/s/
John
C. Wobensmith |
| |
Name:
John C. Wobensmith |
| |
Title:
Chief Financial Officer, Secretary and Treasurer
(Principal
Financial and Accounting Officer)
|
3