EuroDry, an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced that it provided a notice of redemption to its Series B Preferred Shares (“Preferred Shares”) holders for entire of the outstanding amount at par as per the provisions of the Statement of Designation of the Preferred Shares. The Preferred Shares carried a dividend of 8% per annum until January 2023 increasing to 14% per annum thereafter. The Company will use own funds for the redemption which will take place on or about December 20, 2021.
Aristides Pittas, Chairman and CEO of EuroDry commented: “We are very pleased to announce the redemption of the outstanding Series B Preferred Shares at par. This redemption not only will simplify our capital structure but also reduce our funding costs and increase earnings per share attributable to our common shareholders from eliminating the preferred shared dividend by about $0.38 in 2022 and by about $0.67 every year thereafter. Issuing the Preferred Shares in 2014 was instrumental in funding our newbuilding program at the time of two kamsamax and one ultramax drybulk carriers, now in our fleet, in a cost effective way. We would like to thank all our preferred shareholders for their trust and commitment to our Company all these years.”