EuroDry plans to take back millions of dollars worth of preferred shares while lowering its dividend rate for the remaining shares.
The Aristides Pittas-led bulker owner has agreed to redeem approximately $4.3m, of its Series B Preferred Shares, which have a total value of $19.7m as of 31 March.
Since January, the shares carried an annual dividend of 12%, which is set to increase to 14% in January 2021.
Following the agreed upon redemption of $4.3m, there will be $15.4m face value of Series B Preferred Shares outstanding.
Holders of the remaining shares agreed to reduce the annual dividend of the shares to 9.25% until January 2021.
"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, chief executive Aristides Pittas said.
“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."
He said EuroDry's 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 after that.
The Euroseas spinoff has seven dry bulk vessels.
