Gener8 Maritime has registered for an initial public offering and New York Stock Exchange listing, seeking to attract investors during a period of surging spot rates.
Gener8 was created through the merger of Navig8 Crude Tankers and Peter Georgiopoulos’ General Maritime, which closed on 7 May. A successful IPO will mark the return of Georgiopoulos to the public sector: General Maritime went public on NYSE in 2001, grew into one of the largest US-listed tanker companies, filed for Chapter 11 bankruptcy in November 2011, and emerged from bankruptcy in May 2012.
Gener8 has a fleet of 25 tankers on the water (seven VLCCs, 11 Suexmaxes, four Aframaxes, two Panamaxes and one Handymax product carrier) totalling 4.5 million dwt, plus 21 ‘eco’ VLCCs on order for deliveries in August 2015-February 2017, totalling 6.3 million dwt.
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Gener8 has USD794.7 million in debt and USD1.446 billion in remaining instalments on its newbuilds, versus USD163.7 million in cash. IPO proceeds would be used to redeem senior notes and pay a portion of the newbuild instalments.
The company had net income of USD30.9 million in 1Q15 versus USD7.5 million in 1Q14. Gener8 posted a net loss of USD47.1 million for full-year 2014 and a net loss of USD101.1 million the year before.
In 1Q15, Gener8’s fleet earned a time charter equivalent rate of USD35,069/day, up 45% from 1Q14. The company’s VLCCs earned USD42,623/day, up 76%, and its Suexmaxes earned USD35,871/day, up 51%.