The shipping company has reduced 2018 ball[ds_preview]oons from approx. 440 mill. $ to approx. 80 mill. $. The Members of the founding family have each decided for the second consecutive quarter to reinvest in full, the third quarter cash dividend under Costamare’s dividend reinvestment plan.
Gregory Zikos, CFO, said: »Managing our debt repayment schedule, minimizing our capital commitments and adjusting the dividend are necessary steps in today’s market environment. Since the beginning of the year, we have completed debt financing transactions of over 760 mill. $. Out of that amount, (a) approx. 400 mill. $ involve the extension for three years of debt maturing in 2017 and 2018, (b) approx. 175 mill. $ relate to the financing of our newbuild program, (c) approx. 150 mill. $ relate to the refinancing of existing facilities, and (d) approx. 40 mill. $ relate to new financings.«
In August 2016, Costamare said it entered into a loan agreement with a leading European financial institution for the financing of the third and fourth 11,000 TEU vessels on order, acquired under its joint venture with York Capital. The facility is for an amount of up to 87 mill. $ which will be repayable over three years. The proceeds are expected to finance the remaining yard installments for the two vessels.
In August 2016, the company finalized the refinancing of two credit facilities secured with the 2006-built vessel »Cosco Beijing« (9,469 TEUs) and the 2000-built ships »Sealand New York« and »Sealand Washington« (6,648 TEUs each). Under the new financing arrangements, balloon installments of 90 mill. $, due in the second and third quarter of 2018, have been extended to be amortized over three years.
In September 2016, Costamare finalized the refinancing of its 1 bn $ facility. Under the new agreement, the balloon payment of approx. 270 mill. $, due in the second quarter of 2018, has been extended to be amortized over three years, it was said.
Zikos continued: »We have no debt maturities in 2017, we have reduced our 2018 balloons from approx. 440 mill. $ to approx. 80 mill. $ and we have minimized our capital expenditure requirements. As long term committed shareholders, members of the founding family, currently controlling an interest of above 65% in the aggregate, have each decided for the second consecutive quarter to reinvest in full, the third quarter cash dividend under our dividend reinvestment plan available to all common stockholders.«
The Company’s Board of Directors approved management’s recommendation to declare $0.10 cash dividend per each common share, decreased from 0.29 $ per share distributed in the previous quarter. The dividend on the common stock of 0.10 $ per common share will be payable on November 4, 2016 to stockholders of record at the close of trading of the Company’s common stock on the New York Stock Exchange on October 21, 2016. The Company has 77,457,448 shares of common stock outstanding as of today.
