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DEBT
 12 Months Ended
Dec. 31, 2024
DEBT  
DEBT

8 - DEBT

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Long-term debt consists of the following:

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December 31, 

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December 31, 

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2024

    

2023

 

Principal amount

 

$

90,000

 

$

200,000

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Less: Unamortized deferred financing costs

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(7,825)

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(9,831)

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Less: Current portion

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—

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—

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Long-term debt, net

 

$

82,175

 

$

190,169

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As of December 31, 2024 and 2023, $7,825 and $9,831 of deferred financing costs, respectively, were presented as a direct deduction within the outstanding debt balance in the Company’s Consolidated Balance Sheets. Amortization expense for deferred financing costs for the years ended December 31, 2024, 2023 and 2022 was $2,006, $1,779 and $1,694, respectively. This amortization expense is recorded as a component of Interest expense in the Consolidated Statements of Operations.

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On November 29, 2023, the Company entered into a fourth amendment to amend, extend and upsize our existing $450 Million Credit Facility to implement the $500 Million Revolver as noted below.

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In conjunction with the debt modification effective November 29, 2023 as discussed herein, the unamortized deferred financing costs for the $450 Million Credit Facility that was accounted for as a debt modification is being amortized over the life of the $500 Million Revolver in accordance with ASC 470-50.

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$500 Million Revolver

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On November 29, 2023, the Company entered into a fourth amendment to amend, extend and upsize its existing $450 Million Credit Facility. The amended structure consists of a $500 million revolving credit facility, which can be utilized to support growth of our asset base as well as general corporate purposes (the “$500 Million Revolver”).

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Key terms of the $500 Million Revolver are as follows:

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●Maximum loan capacity was increased to $500,000.

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●The entire facility consists of a revolving credit facility.

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●Borrowings bear interest of 1.85% to 2.15% plus the Secured Overnight Financing Rate (“SOFR”), based on our ratio of total net indebtedness to EBITDA.

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●The interest rate of our borrowings may be further increased or decreased by a margin of up to 0.05% based on our performance regarding emissions targets.

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●The maturity date is November 29, 2028.

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●The facility originally had a repayment profile of 20 years with total quarterly commitment reductions of approximately $15,000 per quarter. As a result of the addition of the Genco Reliance and Genco Intrepid as collateral under the facility on November 25, 2024, the scheduled quarterly commitment reductions were revised prospectively effective January 1, 2025 to $13,764 per quarter.

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●The Company is subject to customary financial covenants, including a collateral maintenance covenant requiring the aggregate appraised value of collateral vessels to be at least 140% of the principal amount of loans outstanding, a minimum liquidity covenant requiring our unrestricted cash and cash equivalents to be the greater
of $500 per vessel or 5% of total indebtedness, a minimum working capital covenant requiring consolidated current assets (excluding restricted cash) minus current liabilities (excluding the current portion of debt) to be not less than zero, and a debt to capitalization covenant requiring the ratio of total net indebtedness to total capitalization to be not more than 70%.

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●The Company may declare and pay dividends and other distributions so long as, at the time of declaration, (1) no event of default has occurred and is continuing or would occur as a result of the declaration and (2) the Company is in pro forma compliance with its financial covenants after giving effect to the dividend.

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●Collateral package includes all of the 42 vessels in the Company’s fleet as of December 31, 2024 and the Company has the ability to utilize future vessels the Company may own as collateral.

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●Commitment fees are 40% of the applicable interest rate margin for unutilized commitments.

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As of December 31, 2024, there was $337,287 of availability under the $500 Million Revolver. Total debt repayments of $130,000 and $9,750 were made during the years ended December 31, 2024 and 2023, respectively, under the $500 Million Revolver. As of December 31, 2024, the total outstanding debt, net of unamortized deferred financing costs, was $82,175.

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As of December 31, 2024, the Company was in compliance with all of the financial covenants under the $500 Million Revolver.

 

The following table sets forth the scheduled repayment of the outstanding principal debt of $90,000 as of December 31, 2024 under the $500 Million Revolver:

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Year Ending December 31, 

    

Total

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2028

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$

90,000

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Total debt

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$

90,000

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$450 Million Credit Facility

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On August 3, 2021, the Company entered into the $450 Million Credit Facility, a five-year senior secured credit facility which was allocated between an up to $150,000 term loan facility and an up to $300,000 revolving credit facility which was used to refinance two of the Company’s prior credit facilities.

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On May 30, 2023, the Company entered into an amendment to the $450 Million Credit Facility to transition from the use of LIBOR to calculate interest to SOFR effective June 30, 2023. Borrowings bore interest at SOFR plus the applicable margin effective June 30, 2023.

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On November 8, 2022, the Company entered into an agreement with the lenders under the $450 Million Credit Facility to extend the 360-day period that the net proceeds received from the sale of the Genco Provence may be held as restricted cash to finance a qualifying replacement vessel until October 28, 2023. Furthermore, on October 16, 2023, the Company entered into an agreement with the lenders to further extend this period until January 26, 2024. This restricted cash was released on November 29, 2023 upon the amendment of the existing $450 Million Credit Facility with the $500 Million Revolver.

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Total debt repayments of $0, $236,000 and $75,000 were made during the years ended December 31, 2024, 2023 and 2022, respectively, under the $450 Million Credit Facility.

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On November 29, 2023, the Company entered into a fourth amendment to the $450 Million Credit Facility; refer to the “$500 Million Revolver” section above.

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Interest rates

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The following tables set forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the costs associated with unused commitment fees, if applicable. The effective interest rate below does not include the effect of any interest rate cap agreements. The following tables also include the range of interest rates on the debt, excluding the impact of unused commitment fees and any interest rate cap agreements, if applicable:

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For the Years Ended December 31,

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2024

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2023

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2022

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Effective Interest Rate

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9.08

%  

8.29

%  

4.63

%  

Range of Interest Rates (excluding unused commitment fees)

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6.24 % to 7.24

%  

6.43 % to 7.58

%  

2.26 % to 6.54

%  

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Letter of credit

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In conjunction with the Company entering into a long-term office space lease (See Note 15 — Leases), the Company was required to provide a letter of credit to the landlord in lieu of a security deposit. As of September 21, 2005, the Company obtained an annually renewable unsecured letter of credit with DnB NOR Bank at a fee of 1% per annum. During September 2015, the Company replaced the unsecured letter of credit with DnB NOR Bank with an unsecured letter of credit with Nordea Bank Finland Plc, New York and Cayman Island Branches (“Nordea”) in the same amount at a fee of 1.375% per annum. The letter of credit outstanding was $300 as of December 31, 2024 and 2023 at a fee of 1.375% per annum. The letter of credit is cancelable on each renewal date provided the landlord is given 30 days' minimum notice. As of December 31, 2024 and 2023, the letter of credit outstanding has been securitized by $315 that was paid by the Company to Nordea during the year ended December 31, 2015. The letter of credit has an expiration date of November 30, 2025. These amounts have been recorded as restricted cash included in total current assets as of December 31, 2024 and in total noncurrent assets in the Consolidated Balance Sheets as of December 31, 2023.