Preferreds convert at $1.45, sold to Tennenbaum and Preferred Friends
By Devika Patel
Knoxville, Tenn., Jan. 27 - Euroseas Ltd. said it negotiated a sale of series B convertible perpetual preferred stock with a fund managed by Tennenbaum Capital Partners, LLC and Preferred Friends Investment Co. Inc. The deal will raise about $29 million.
The company will sell 25,000 preferreds to Tennenbaum and 5,700 preferreds to Preferred Friends. The preferreds accumulate dividends during the first five years at 0% or 5%, depending on the trading price of the company's common stock. The stock is convertible at $1.45 per share and redeemable after five years. The conversion price is a 15.08% premium to the Jan. 24 closing share price of $1.26.
Settlement is expected on Jan. 29.
Proceeds will be used to acquire vessels and for general corporate purposes.
"This fundraising is part of our strategy to make investments in dry cargo vessels at what we believe is an opportune time in the market cycle and to renew our fleet as evidenced by the newbuilding orders for 2 Ultramax bulkers we recently placed," chief executive officer Aristides Pittas said in a press release.
Euroseas is a Maroussi, Greece-based owner and operator of drybulk and container vessels.
| Issuer: | Euroseas Ltd.
|
| Issue: | Series B convertible perpetual preferred stock
|
| Amount: | $29 million (approximate)
|
| Preferreds: | 30,700
|
| Dividends: | 0% or 5%
|
| Conversion price: | $1.45
|
| Conversion premium: | 15.09%
|
| Call: | After five years
|
| Warrants: | No
|
| Investor: | Tennenbaum Capital Partners, LLC, Preferred Friends Investment Co. Inc.
|
| Pricing date: | Jan. 27
|
| Settlement date: | Jan. 29
|
| Stock symbol: | Nasdaq: ESEA
|
| Stock price: | $1.26 at close Jan. 24
|
| Market capitalization: | $58.95 million
|
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