Drybulk Shippers Genco and Baltic Trading Agree to Merge

Drybulk delivery firm Genco Shipping & Trading Limited (OTCBB: GSKNF) and its subsidiary Baltic Trading Limited (NYSE: BALT) introduced a definitive merger settlement underneath which Genco will purchase Baltic Trading, a deal that’s anticipated to simplify possession construction and higher place the corporate for future progress.

“This transaction is a natural evolution for Genco and Baltic Trading, and we are confident that it will deliver superior value to the shareholders of both companies,” stated Peter C. Georgiopoulos, Chairman of the Genco and Baltic Trading Boards of Directors. “The combined company will be poised to capitalize on opportunities in the current market environment, and we believe the combined platform is well positioned for continued growth as a consolidator in our industry.”

The mixed firm could have an owned fleet of 70 drybulk vessels with a mean age of 8.8 years and an mixture carrying capability of roughly 5,159,000 dwt. The fleet consists of 13 Capesize, eight Panamax, 21 Supramax, 4 Ultramax, six Handymax and 18 Handysize vessels, together with two Ultramax newbuildings beforehand contracted by Baltic Trading.

Under the phrases of the settlement, Baltic Trading will change into an oblique wholly-owned subsidiary of Genco, and Baltic Trading shareholders will obtain 0.216 shares of Genco frequent inventory for every share of Baltic Trading frequent inventory owned at closing. Following the transaction, Genco shareholders are anticipated to personal roughly 84.5 p.c of the mixed firm and Baltic Trading shareholders are anticipated to personal roughly 15.5 p.c. Genco expects to have its inventory listed on the NYSE following the deal.

Georgiopoulos added that the transaction has already been unanimously authorized by each corporations’ unbiased particular committee established their respective Board of Directors.

The closing of the transaction remains to be topic to the itemizing of Genco frequent inventory on the NYSE and approval by Genco and Baltic Trading’s majority shareholders, amongst different closing circumstances.

The transaction is anticipated to shut within the third quarter of 2015.

John C. Wobensmith, President of Genco and President and Chief Financial Officer of Baltic Trading, stated, “By combining Genco and Baltic Trading we are creating an industry leader that is well positioned for future growth and expansion, and we are excited about our future prospects. Through this combination, we expect to benefit from having a larger platform and solid financial position for value creation. The transaction will simplify our ownership structure, enhance the combined company’s scale and operations and reduce overhead. We appreciate the continued support of our commercial banks and look forward to continuing to provide our charterers around the world with best-in-class shipping services.”

About Genco Shipping & Trading Limited

Genco Shipping & Trading Limited transports iron ore, coal, grain, metal merchandise and different drybulk cargoes alongside worldwide delivery routes. Excluding Baltic Trading Limited’s fleet, Genco owns a fleet of 53 drybulk vessels, consisting of 9 Capesize, eight Panamax, 17 Supramax, six Handymax and 13 Handysize vessels, with an mixture carrying capability of roughly 3,810,000 dwt.

About Baltic Trading Limited

Baltic Trading Limited is a drybulk firm centered on the spot constitution market. Baltic Trading transports iron ore, coal, grain, metal merchandise and different drybulk cargoes alongside world delivery routes. Baltic Trading Limited’s present fleet consists of 4 Capesize, two Ultramax, 4 Supramax, and 5 Handysize vessels with an mixture capability of roughly 1,221,000 dwt. After the anticipated supply of the remaining two Ultramax newbuildings that Baltic Tradinghas agreed to accumulate, Baltic Trading will personal 17 drybulk vessels, consisting of 4 Capesize, 4 Ultramax, 4 Supramax and 5 Handysize vessels with a complete carrying capability of roughly 1,349,000 dwt.