GENER8 MARITIME,INC. (OTCBB:GMRRQ) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

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GENER8 MARITIME,INC. (OTCBB:GMRRQ) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On April 10, 2017, three subsidiaries of Gener8 Maritime, Inc. (the “Company”) effected modifications to certain interest rate swap transactions initially entered into on May 2, 2016 as cash flow hedges that effectively fix the interest rates for three of the Company’s term loan facilities: a credit agreement in the amount of up to $581.0 million by and among the Company as parent guarantor, Gener8 Maritime Subsidiary II Inc. as borrower, various lenders party thereto, and Nordea Bank Finland plc, New York Branch, as facility agent and collateral agent (the “Refinancing Facility”); a facility agreement in the amount of up to $963.7 million by and among (i) Gener8 Maritime Subsidiary VIII Inc. as borrower, (ii) Gener8 Maritime Subsidiary V Inc. as shareholder, (iii) the Company as parent guarantor, (iv) the companies listed therein as joint and several owner guarantors, (v) Citibank, N.A. and Nordea Bank Finland Plc, New York Branch as global-co-ordinators, (vi) Citibank, N.A. and Nordea Bank Finland Plc, New York Branch as bookrunners, (vii) Citibank, N.A., Nordea Bank Finland Plc, New York Branch, ABN AMRO Capital USA LLC, Banco Bilbao Vizcaya Argentaria, S.A., Seoul Branch, DNB Markets, Inc., DVB Bank SE, Skandinaviska Enskilda Banken AB, and The Export-Import Bank of Korea as mandated lead arrangers, (viii) Caixa Bank, S.A. and Landesbank Hessen-Thueringen Girozentrale as lead arrangers, (ix) the banks and financial institutions named therein as commercial lenders, (x) the banks and financial institutions named therein as hedge counterparties, (xi) Citibank, N.A., London Branch as ECA co-ordinator and ECA agent, (xii) Nordea Bank Finland Plc, New York Branch as commercial tranche co-ordinator, (xiii) Nordea Bank Finland Plc, New York Branch as facility agent, (xiv) Nordea Bank Finland Plc, New York Branch as security agent, and (xv) The Export-Import Bank of Korea (the “Korean Export Credit Facility”); and a facility agreement in the amount of up to $385.2 million by and among (i) Gener8 Maritime Subsidiary VII Inc. as borrower, (ii) the Corporation as parent guarantor, (iii) the companies listed therein as joint and several owner guarantors, (iv) Citibank, N.A. and Nordea Bank Finland Plc, New York Branch as global co-ordinators, (v) Citibank, N.A. as bookrunner, (vi) Citibank, N.A., The Export-Import Bank of China and Bank of China, New York Branch as mandated lead arrangers, (vii) the banks and financial institutions named therein as original lenders, (viii) the banks and financial institutions named therein as hedge counterparties, (ix) Citibank, N.A., London Branch as ECA co-ordinator and ECA agent, (x) Nordea Bank Finland Plc, New York Branch as facility agent, and (xi) Nordea Bank Finland Plc, New York Branch as security agent (the “Sinosure Credit Facility”).

The modifications included changes to the notional amounts and maturity dates of, and increases in the fixed rates payable under, the interest rate swap transactions. In connection with the modifications, the Company received payments totaling $18.2 million from the swap counterparties, as described below.

Interest Rate Swap Transactions under Refinancing Facility.

On May 2, 2016, Gener8 Maritime Subsidiary II Inc. (“Gener8 Maritime Sub II”), a wholly-owned subsidiary of the Company, entered into interest rate swap transactions with each of Citibank, N.A. and Skandinaviska Enskilda Banken AB (publ) (collectively, the “Refinancing Swap Counterparties”) having an initial amortizing aggregate notional amount of $256.8 million, a Termination Date of September 3, 2020 and a fixed rate of 0.9935%.

The modifications entered into on April 10, 2017 increased the effective fixed rate to 1.6576% and decreased the aggregate amortizing notional amount to $118.5 million as of that date, and included other conforming and technical changes. In connection with the modifications, payments totaling $2.7 million were made by the Refinancing Swap Counterparties to Gener8 Maritime Sub II.

Interest Rate Swap Transactions under Korean Export Credit Facility.

On May 2, 2016, Gener8 Maritime Subsidiary VIII Inc. (“Gener8 Maritime Sub VIII”), a wholly-owned subsidiary of the Company, entered into interest rate swap transactions with each of ABN AMRO Bank N.V., Citibank, N.A., and Skandinaviska Enskilda Banken AB (publ) (collectively, the “KEXIM Swap Counterparties”) having an initial amortizing aggregate notional amount of $333.9 million, a Termination Date of February 20, 2029 and a fixed rate of 1.3073%. The initial aggregate notional amount was scheduled to increase to a maximum aggregate notional amount of $680.8 million.

The modifications entered into on April 10, 2017 increased the effective fixed rate to 1.841% and decreased the

aggregate amortizing notional amount to $599.4 million as of that date, and included other conforming and technical changes. The modifications also changed the Termination Date to September 30, 2020, eliminating the period during which 5% of the variable interest rate borrowings expected to be outstanding under the Korean Export Facility would be hedged at a fixed rate. In connection with the modifications, payments totaling $10.4 million were made by the Kexim Swap Counterparties to Gener8 Maritime Sub VIII.

Interest Rate Swap Transaction under Sinosure Credit Facility.

On May 2, 2016, Gener8 Maritime Subsidiary VII Inc. (“Gener8 Maritime Sub VII”), a wholly-owned subsidiary of the Company, entered into an interest rate swap transaction with Citibank, N.A., London Branch having an initial amortizing notional amount of $241.6 million, a Termination Date of May 6, 2028 and a fixed rate of 1.410%.

The modifications entered into on April 10, 2017 increased the fixed rate to 2.047% and increased the aggregate amortizing notional amount to $328.7 million as of that date, and included other conforming and technical changes. The modifications also changed the Termination Date to March 21, 2022, eliminating the period during which 5% of the variable interest rate borrowings expected to be outstanding under the Sinosure Credit Facility would be hedged at a fixed rate. In connection with the modifications, a payment of $5.1 million was made by Citbank N.A., London Branch to Gener8 Maritime Sub VII.


About GENER8 MARITIME, INC. (OTCBB:GMRRQ)

Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.

GENER8 MARITIME, INC. (OTCBB:GMRRQ) Recent Trading Information

GENER8 MARITIME, INC. (OTCBB:GMRRQ) closed its last trading session at 0.0042 with shares trading hands.