Seanergy Maritime Announces Additional $5 Million Buyback of Convertible Notes Total Completed Buybacks of $21.6 million to date
January 19 2022 - 9:00AM
Seanergy
Maritime Announces
Additional $5
Million Buyback of
Convertible Notes
Total Completed
Buybacks of
$21.6 million to
date
January
19, 2022
- Glyfada,
Greece - Seanergy Maritime Holdings Corp. (the “Company”
or “Seanergy”) (NASDAQ: SHIP) announced today an aggregate of $5
million in buyback and partial elimination of the outstanding
convertible note (the “Note”), utilizing 50% of its second share
repurchase plan (the “Plan”). As previously announced and following
the full completion of the first share repurchase plan, the Board
of Directors authorized the additional Plan, under which the
Company might repurchase up to an additional $10 million of its
common shares, convertible notes or warrants.
The Note carries a 5.5% coupon, has a $1.20 per
share conversion price and is held by Jelco Delta Holding Corp.
(“Jelco”). Based on the conversion price, the buyback is preventing
potential dilution of 4.17 million shares. Seanergy will realise
annual interest savings of $275,000 as a result of the deleveraging
effect of the prepayment. Moreover, the Company’s cash sweep
obligations for 2022 under its outstanding loan and Note with Jelco
have been waived.
The Company expects to record a non-cash
accounting loss of approximately $1.5 million in the first quarter
of 2022, associated with the accounting treatment of the Note.
Nonetheless, the prepayment will have a positive impact on the
income statement for 2022-24 through the elimination of non-cash
charges of an average of $0.5 million per year.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“I am pleased to announce another repurchase of
the Company within a very short period of time. These buybacks
reflect our strong confidence in the Company and the Capesize
market. We firmly believe that both the current levels of our share
price and the conversion price of the Notes are lagging far behind
the true value of the Company.
“We remain committed to enhancing shareholder
value. In this context, we further reduce our financial leverage
and diminish the potential dilution from outstanding share-linked
instruments, eliminating legacy overhang on our share price. At the
same time, our interest expense is expected to further decline
following the prepayment, benefiting the daily cash break-even of
the fleet.”
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the US. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. The Company's operating fleet consists
of 17 Capesize vessels with an average age of 11.7 years and
aggregate cargo carrying capacity of approximately 3,011,083
dwt.
The Company is incorporated in the Marshall
Islands and has executive offices in Glyfada, Greece. The Company's
common shares trade on the Nasdaq Capital Market under the symbol
“SHIP” and its Class B warrants under “SHIPZ”.
Please visit our company website at:
www.seanergymaritime.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates" and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's operating
or financial results; the Company's liquidity, including its
ability to service its indebtedness; competitive factors in the
market in which the Company operates; shipping industry trends,
including charter rates, vessel values and factors affecting vessel
supply and demand; future, pending or recent acquisitions and
dispositions, business strategy, areas of possible expansion or
contraction, and expected capital spending or operating expenses;
risks associated with operations outside the United States; risks
associated with the length and severity of the ongoing novel
coronavirus (COVID-19) outbreak, including its effects on demand
for dry bulk products and the transportation thereof; and other
factors listed from time to time in the Company's filings with the
SEC, including its most recent annual report on Form 20-F. The
Company's filings can be obtained free of charge on the SEC's
website at www.sec.gov. Except to the extent required by law, the
Company expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
For further information please contact:
Seanergy Investor RelationsTel: +30 213 0181 522E-mail:
ir@seanergy.gr
Capital Link, Inc.Paul Lampoutis230 Park Avenue Suite 1536New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
- 2022-1-19_SHIP additional buyback
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