REG - Taylor Maritime Taylor Maritime -TMI - Trading Update

Taylor MaritimeAnnouncement

11/12/2024 07:15

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RNS Number : 5914P  Taylor Maritime Investments Limited  11 December 2024

11 December 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

For immediate release.

 

 

Taylor Maritime Investments Limited

 

Trading Update

 

Special dividend payable in calendar year Q1 2025

Three vessel sales completed and one further vessel sale agreed

Refinancing to simplify debt across the business

 

Taylor Maritime Investments Limited (the "Company" or "TMI" and together with
its subsidiary undertakings, the "Group" or "TMI Group"), the specialist dry
bulk investment company, today announces its intention to declare a special
dividend of 4 cents per ordinary share in respect of the period to 31 December
2024, to be paid in the first quarter of calendar year 2025, in addition to
the regular quarterly dividend of 2 cents per ordinary share.

Following the payment of the special dividend and the regular quarterly
dividend in the first quarter of calendar year 2025, the Company will have
paid 14 consecutive quarterly dividends including two special dividends since
IPO amounting to $113.8 million returned to shareholders.

Further details of the special dividend and the related timetable will be
announced in due course.

Commenting on the special dividend, Edward Buttery, Chief Executive Officer,
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 IPO.  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.  As we enter a new phase of the Company's evolution,
our philosophy and core strategy remain the same.  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."

Vessel Sales

Three previously announced Handysize vessel sales have now completed at an
average 3.3% discount to fair market value; a 2009 built 32k dwt vessel, a
2012 built 28k dwt vessel, and a 2008 built 33k dwt vessel, generating gross
proceeds of $37.0 million.  The Company has further agreed the sale of a 2011
built 33k dwt Handysize vessel for gross proceeds of $13.9 million,
representing a 0.5% discount to fair market value, which is expected to
complete in the first quarter of calendar year 2025.

Overall, there have now been 27 vessel divestments since the Grindrod
acquisition in late 2022, averaging a 3.0% discount to fair market value 1 
and resulting in a $198 million reduction in debt.

Refinancing

The Company has entered into a single senior secured 4 year revolving credit
facility (the "RCF") maturing in December 2028 to replace TMI Group's two main
debt facilities.  The new RCF bears a lower margin compared with both
existing debt facilities that it replaces.  The refinancing lowers TMI
Group's cash breakeven by c.$1,700 per ship per day due to there being no
scheduled loan repayments for two years.  The Company plans initially to draw
down c.$167.5m of the RCF commitment and there is further liquidity available
under the RCF if required, providing future financial flexibility.

Progress with debt reduction

Taking the above into account, total outstanding debt on a look-through basis
is expected to be $252.3 million at the end of December (versus $282.7 million
at 30 September 2024) representing a debt-to-gross assets ratio of 32.5% 2 
based on fair market values as at the end of September.  The Company remains
focused on strengthening its balance sheet, and intends to repay debt from
agreed and future vessel sales and operating earnings, targeting medium-term
look-through leverage of 25-30% of gross assets.

 

ENDS

 

 For further information, please contact:

Taylor Maritime Investments Limited      IR@tminvestments.com (mailto:IR@tminvestments.com)

 Edward Buttery

 Camilla Pierrepont

 Jefferies International Limited          +44 20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 Sanne Fund Services (Guernsey) Limited   +44 1481 737600

 Matt Falla

 

The person responsible for arranging for the release of this announcement on
behalf of the Company is Matt Falla of Sanne Fund Services (Guernsey) Limited.

 

Notes to Editors

 

About the Company

Taylor Maritime Investments Limited is an internally managed investment
company listed under the closed-ended investment funds category of the FCA's
UK Listing Rules sourcebook (previously the Premium Segment of the Official
List), with its shares trading on the Main Market of the London Stock Exchange
since May 2021. As announced today, the Company is proposing to transfer the
Company's equity shares listing from the closed-ended investment funds
category to the equity shares (commercial companies) category of the Official
List.  The Company specializes in the acquisition and chartering of vessels
in the Handysize and Supra/Ultramax bulk carrier segments of the global
shipping sector.  The Company invests in a diversified portfolio of vessels
which are primarily second-hand and Japanese built.

The Company acquired a controlling stake in Grindrod Shipping Holdings Limited
("Grindrod") in December 2022 and, following a selective capital reduction
which took effect on 16 August 2024, Grindrod became a wholly owned subsidiary
of the Company and was delisted from each of Nasdaq and the JSE.  As a
result, the Company, through its subsidiaries, currently has an owned fleet of
31 dry bulk vessels consisting of 21 Handysize vessels (including one vessel
held for sale) and ten Supra/Ultramax vessels (including one vessel under a JV
agreement and one long-term chartered in vessel with purchase option).  The
Company also has six vessels in its short-term chartered in fleet. The ships
are employed utilising a variety of employment/charter strategies.

The Company's target dividend policy is 8 cents p.a. paid on a quarterly
basis, with a targeted total NAV return of 10-12% per annum over the medium to
long-term.

The Company has the benefit of an experienced executive team led by Edward
Buttery and who previously worked closely together at Taylor Maritime.
Taylor Maritime was established in 2014 as a privately owned ship-owning and
management business with a seasoned team including the founders of dry bulk
shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas
shipping company BW Epic Kosan (formerly Epic Shipping).  The commercial and
technical management arms of Taylor Maritime were acquired by Grindrod in
October 2023.

For more information, please visit www.taylormaritimeinvestments.com
(http://www.taylormaritimeinvestments.com/) .

About Geared Vessels

Geared vessels are characterised by their own cargo loading and discharging
equipment. The Handysize and Supra/Ultramax market segments are particularly
attractive, given the flexibility, versatility and port accessibility of these
vessels which carry necessity goods - principally food and products related to
infrastructure building - ensuring broad diversification of fleet activity and
stability of earnings through the cycle.

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company,
including, among other things, the development of its business, trends in its
operating industry, and future capital expenditures and acquisitions. In light
of these risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur.

References to target dividend yields and returns are targets only and not
profit forecasts and there can be no assurance that these will be achieved.

 

LEI: 213800FELXGYTYJBBG50

 

 1  Includes completed and agreed sales but excludes the two vessel sales
within the Group

 2  Excludes lease liabilities

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