LONDON - Taylor Maritime Investments Limited (LSE:TMI), a specialist dry bulk investment company, announced today its plans to pay a special dividend and provided an update on recent vessel sales and refinancing efforts. The company intends to declare a special dividend of 4 cents per share for the period ending December 31, 2024, to be paid in the first quarter of 2025. This is in addition to the regular quarterly dividend of 2 cents per share.
The upcoming special dividend, combined with the regular dividends, will bring the total returned to shareholders to $113.8 million since the company's initial public offering (IPO). The exact date and further details regarding the special dividend will be released soon.
Edward Buttery, CEO of Taylor Maritime, expressed that the special dividend reflects the cash generated from recent vessel disposals, which were sold at or near their net asset value (NAV). He also noted the company's successful refinancing of its debt, attributing it to a simplified corporate structure after the acquisition of Grindrod (JO:GNDJ). Buttery remains confident in the company's position to capitalize on the positive medium-term outlook for their shipping segment.
The company completed the sale of three Handysize vessels at an average of 3.3% below fair market value, generating $37.0 million in gross proceeds. Additionally, a sale agreement has been reached for another Handysize vessel, expected to close in the first quarter of 2025 for $13.9 million, a 0.5% discount to fair market value.
Following the Grindrod acquisition in late 2022, Taylor Maritime has divested a total of 27 vessels, averaging a 3.0% discount to fair market value, which has contributed to a significant reduction in debt by $198 million.
In terms of refinancing, Taylor Maritime has consolidated its debt into a single senior secured 4-year revolving credit facility (RCF) maturing in December 2028. The RCF offers a lower margin compared to the previous debt facilities and postpones scheduled loan repayments for two years, improving the company's cash breakeven by approximately $1,700 per ship per day. The company plans to initially draw down around $167.5 million of the RCF, with additional liquidity available if needed.
The company's total outstanding debt is projected to be $252.3 million at the end of December, a decrease from $282.7 million as of September 30, 2024. This represents a debt-to-gross assets ratio of 32.5%, based on fair market values at the end of September. Taylor Maritime continues to focus on strengthening its balance sheet and aims to reduce leverage to 25-30% of gross assets in the medium term through further vessel sales and operating earnings.
This update is based on a press release statement from Taylor Maritime Investments Limited.
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