By Elias Schisgall
Diana Shipping said a group of banks had extended their financing commitment to support its effort to acquire rival drybulk shipper Genco Shipping & Trading.
Diana said the banks, led by DNB Carnegie and Nordea, have extended their commitment for about $1.41 billion in financing. It said tranche B of the commitment had been revised down to $310 million from $331 million to account for Genco's sale of two vessels.
The extended financing comes after Diana raised its bid to acquire Genco to $27.34 a share, consisting of $24.80 in cash and one Diana share. Genco has said it would review the updated proposal.
Diana has also extended its tender offer to buy shares from Genco shareholders under the same terms as the acquisition proposal. It said Monday that shareholders had tendered 28.4% of the outstanding shares of Genco as of Friday, adding to its existing stake of more than 14%.
"We are grateful to our banking partners for their continued confidence in and support of Diana's premium offer to acquire the Genco shares that we do not currently own," Diana Chief Executive Semiramis Paliou said Tuesday. "Their commitment, alongside the growing support of shareholders who have tendered their shares, sends a clear message that there is a serious, credible, and well-supported offer on the table."
Genco has broadly resisted Diana's takeover efforts, rejecting the company's previous three takeover proposals. Genco last week said its shareholders had voted down Diana's two nominees to the board while approving Genco's nominees and proposals.
Write to Elias Schisgall at elias.schisgall@wsj.com