Seanergy Announces Additional $5 Million Buyback of Convertible Notes


Seanergy announced an aggregate of $5 million in buyback and partial elimination of the outstanding convertible note, utilizing 50% of its second share repurchase plan.

As previously announced and following the full completion of the first share repurchase plan, the Board of Directors authorized the additional Plan, under which the Company might repurchase up to an additional $10 million of its common shares, convertible notes or warrants.

The Note carries a 5.5% coupon, has a $1.20 per share conversion price and is held by Jelco Delta Holding Corp. (“Jelco”). Based on the conversion price, the buyback is preventing potential dilution of 4.17 million shares. Seanergy will realise annual interest savings of $275,000 as a result of the deleveraging effect of the prepayment. Moreover, the Company’s cash sweep obligations for 2022 under its outstanding loan and Note with Jelco have been waived.

The Company expects to record a non-cash accounting loss of approximately $1.5 million in the first quarter of 2022, associated with the accounting treatment of the Note. Nonetheless, the prepayment will have a positive impact on the income statement for 2022-24 through the elimination of non-cash charges of an average of $0.5 million per year.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“I am pleased to announce another repurchase of the Company within a very short period of time. These buybacks reflect our strong confidence in the Company and the Capesize market. We firmly believe that both the current levels of our share price and the conversion price of the Notes are lagging far behind the true value of the Company.

“We remain committed to enhancing shareholder value. In this context, we further reduce our financial leverage and diminish the potential dilution from outstanding share-linked instruments, eliminating legacy overhang on our share price. At the same time, our interest expense is expected to further decline following the prepayment, benefiting the daily cash break-even of the fleet.”



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