EuroDry Ltd. Announces Partial Redemption of its Preferred Shares and Reduction of Their Dividend Rate until 2021

EuroDry Ltd., 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.

Image: EuroDry Ltd.

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.”
Source: EuroDry Ltd.