Taylor Maritime Investments Ltd on Wednesday declared a special dividend in addition to its regular quarterly payment due to cash generated from recent disposals.
TMI is a Guernsey, England-based investment company specialising in bulk carrier segments of the global shipping sector.
It declared a special dividend of 4.00 cents per share to be paid in the first quarter of calendar year 2025, in addition to the regular quarterly dividend of 2.00 cents per share.
TMI declared the dividend as it has been able to realise net asset value through vessel sales. Three previously announced vessel sales have now completed at an average 3.3% discount to fair market value.
It said there has been 27 vessel divestments since the Grindrod acquisition in 2022, which has resulted in a $198 million reduction in debt.
The company has also entered into a single senior secured four year revolving credit facility to replace its two main debt facilities. The company said it plans to initially draw down $167.5 million, and there is further liquidity available if required.
TMI said its total outstanding debt on a look through basis is expected to be $252.3 million at the end of December, down 11% from $282.7 million at the end of September.
Chief Executive Officer Edward Buttery said: ‘The board’s intention to pay a special dividend is the result of cash generated from recent disposals completed at, or close to, NAV. Given we’ve been able to realise NAV through vessel sales, it makes sense to return some of the surplus cash to our shareholders who have continued to support TMI since initial public offering.
‘We’re also pleased to have refinanced the group’s debt under more favourable terms, enabled by our simplified corporate structure post the Grindrod acquisition...I believe the company is well-positioned to benefit from the positive medium-term outlook for our segment of shipping and is more resilient in the face of short-term macro uncertainty,’ he said.
Shares in TMI were up 4.9% to 76.57 pence in London on Wednesday afternoon.
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