Costamare Inc. Completes Full Redemption of Its Outstanding Shares of Series E Preferred Stock
Costamare Inc. (NYSE: CMRE) has completed the full redemption of its 4,574,100 outstanding shares of 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock. The redemption price was set at $25.00 per share, plus accrued and unpaid dividends up to July 15, 2024. Prior to the redemption, the company paid a quarterly dividend of $0.554688 per share on July 15, 2024, to holders of record as of July 12, 2024. The redemption was funded with cash on hand. Following this action, no Series E Preferred Stock remains outstanding, and all associated rights have ceased, except for the holders' right to receive the redemption price. The New York Stock Exchange has suspended trading of the Series E Preferred Stock and initiated the delisting process.
- Full redemption of Series E Preferred Stock completed
- Redemption funded with cash on hand, indicating strong liquidity
- Elimination of preferred stock may reduce dividend obligations
- Potential increase in cost of capital due to elimination of preferred stock
Insights
The full redemption of the 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock by Costamare Inc. represents a significant financial event. Redeeming these preferred shares reduces the company's future dividend obligations, resulting in potential savings in dividend payouts. For investors, it is important to understand that the redemption price was set at
The company funded this redemption with its cash on hand, which indicates a strong liquidity position. However, it's important to monitor if this impacts their cash reserves or operational flexibility moving forward. Costamare's actions suggest they are possibly aiming to simplify their capital structure, potentially improving financial stability and reducing cost of capital. Investors might see this as a positive move in the long term, though it’s essential to remain cautious about the company’s cash management strategies.
The redemption of the Series E Preferred Stock and its subsequent delisting from the NYSE could have various market implications. For one, this move can impact the company’s market perception and stock liquidity. With fewer types of securities available, some institutional investors may re-evaluate their positions based on their investment guidelines that may prefer or require exposure to preferred equity.
From a broader market perspective, this redemption may be seen as a consolidation move, which often indicates the company is gearing up for strategic changes. Investors should be alert to upcoming announcements or shifts in strategy that Costamare Inc. might introduce. Additionally, the redemption impacts the trading dynamics of the common stock, as it could alter the supply-demand equation and potentially affect stock prices.
MONACO, July 15, 2024 (GLOBE NEWSWIRE) -- Costamare Inc. (the “Company”, “we” or “our”) (NYSE: CMRE) announced today that the Company has completed the previously announced redemption of all of its 4,574,100 outstanding shares of
None of the shares of Series E Preferred Stock remain outstanding, and all rights with respect to such stock have ceased and terminated, other than the right of the Holders to receive payment of the Redemption Price.
In connection with the Redemption, the New York Stock Exchange ("NYSE") has suspended trading of the Series E Preferred Stock effective prior to the opening of trading on the Redemption Date. NYSE has filed with the Securities and Exchange Commission (the "SEC") a notification of removal from listing and registration on Form 25 to effect the delisting of all of the shares of Series E Preferred Stock from NYSE.
About Costamare Inc.
Costamare Inc. is one of the world’s leading owners and providers of containerships and dry bulk vessels for charter. The Company has 50 years of history in the international shipping industry and a fleet of 68 containerships, with a total capacity of approximately 513,000 TEU and 39 dry bulk vessels with a total capacity of approximately 2,900,000 DWT (including one vessel that we have agreed to sell and two vessels we have agreed to acquire). The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions. The Company participates in a leasing business that provides financing to third-party owners. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C” and “CMRE PR D”, respectively.
Forward-Looking Statements
This press release contains “forward-looking statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”, “anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”, “may”, “should”, “could”, “expect” and similar expressions. These statements are not historical facts but instead represent only Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare’s control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors”.
Company Contacts:
Gregory Zikos - Chief Financial Officer
Konstantinos Tsakalidis - Business Development
Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com
FAQ
What was the redemption price for Costamare's Series E Preferred Stock (CMRE)?
When did Costamare (CMRE) complete the redemption of its Series E Preferred Stock?
How many shares of Series E Preferred Stock did Costamare (CMRE) redeem?
What happened to the trading of Costamare's Series E Preferred Stock (CMRE) on the NYSE after the redemption?
