EuroDry, an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced that it agreed to redeem approximately $4.3 million of its Series B Preferred Shares with a simultaneous reduction of the dividend rate for the remaining outstanding shares.
The Series B Preferred Shares have an aggregate value of about $19.7 million as of March 31, 2019 and since January 2019, carried an annual dividend of 12% which is set to increase to 14% in January 2021. After the agreed upon redemption of $4.3 million, there will be $15.4 million face value of Series B Preferred Shares outstanding. In parallel with the redemption, the holders of the remaining Series B Preferred Shares agreed to reduce the annual dividend of the shares to 9.25% until January 2021.
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are very pleased to announce the repayment of $4.3 million of face value of our preferred shares outstanding and, equally importantly, the agreement to reduce the dividend rate of the remaining outstanding shares from 12% to 9.25% for the next 18 months. We have positioned EuroDry with sufficient resources to invest and benefit from a potential market recovery while we are committed to identify and execute any transaction that benefits our shareholders.”
“This redemption and dividend rate reduction will result in savings of about $0.5 million in the remaining of 2019, about $0.95 million in 2020 and about $0.60 million per year thereafter. Our cash flow breakeven rate will be about $375 per vessel per day lower until January 2021 and about $235 per vessel per day lower, thereafter.”