Nasdaq-listed Pyxis Tankers is doing shareholders a favour by taking out its remaining convertible preferred stock in a buyback deal.
The Greek shipowner said it would redeem the last 303,631 outstanding shares of the issue, which pays a 7.75% coupon.
Chief executive Eddie Valentis said this will prevent the company from paying monthly dividends on the shares and “further reduce potential dilution on the basis of earnings and net asset value per share and improve share liquidity”.
The buyback will cost $25 per share, plus accrued dividends. This means a spend of $7.54m.
The stock gives holders the right to acquire 1.35m shares.
There are 10.66m common Pyxis shares outstanding.
Pyxis also said it had bought back 66,000 of its own shares so far in the third quarter, at a total price of $300,000.
Since the start of this repurchase programme in May last year, the company has acquired a total of 481,164 shares.
The shipping company has authorisation from the board to spend another $1m.
The scheme expires next year.
Rates healthy
As of 10 September, Pyxis said 91% of available MR tanker days in the third quarter have been booked at an average of $31,545 per day.
The figure for its bulkers is $17,641, with 87% of capacity fixed.
“Since the start of our equity repurchase programme 15 months ago, we have continued to generate significant value for our shareholders,” Valentis said.
“As shown by our updated bookings for the third quarter of 2024, market conditions remain healthy for both the product tanker and dry bulk sectors, despite some seasonal softness,” he added.
The company has six ships, five of which operate under short-term time charters and one in the spot market.
“We will continue to utilise our diversified chartering strategy,” the CEO said.
