REG - Taylor Maritime Taylor Maritime -TMI - Two vessel sales completed

Taylor Maritime InvestmentsAnnouncement

05/12/2023 07:15

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RNS Number : 6398V  Taylor Maritime Investments Limited  05 December 2023

5 December 2023

 

Taylor Maritime Investments Limited (the "Company" or "TMI")

 

Two vessel sales completed

 

Taylor Maritime Investments Limited, the specialist dry bulk shipping company,
today announces that it has completed the sale of one 2004 built 34k dwt
Handysize vessel for gross proceeds of $7.8 million, generating an IRR of
44.2% and MOIC of c.1.8x.

The previously announced sale of a 2007 bult 33k dwt Handysize vessel
completed earlier this month generating gross proceeds of $9.0 million, an IRR
of c.19% and MOIC of c.1.4x.

In connection with the vessel sales, $11.4 million of debt will be repaid by
the end of the quarter to 31 December 2023, resulting in a reduction to the
Company's outstanding debt to $156.2 million (26.1% Debt to Gross Assets at
TMI level based on 30 September 2023 Fair Market Values).

Overall, there have been fifteen asset disposals across the Company and
Grindrod in 2023 which have been achieved at an average discount to carrying
value of -4.0%.

Commenting on the trading update Edward Buttery, Chief Executive Officer,
said:

"With these vessel sales, the two oldest in the TMI fleet, we continue to
optimise our portfolio in the face of tightening environmental regulations
while also deleveraging.  Our focus on divesting older, less efficient
tonnage while maintaining an attractive core of modern, Japanese-built geared
dry bulk carriers means we are well positioned to deliver long term value to
shareholders given favourable fundamentals for the geared dry bulk segment."

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 20 3530 3107

 Matt Falla

Notes to Editors

 

About the Company

Taylor Maritime Investments Limited is an internally managed investment
company listed on the Premium Segment of the Official List, its shares trading
on the Main Market of the London Stock Exchange since May 2021.  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.  TMI's fleet portfolio currently numbers 19 vessels in the
geared dry bulk segment.  The ships are employed utilising a variety of
employment/charter strategies.

On 20 December 2022, the Company announced it acquired a controlling majority
interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN,
JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and the
Johannesburg Stock Exchange.  Grindrod has an owned fleet of 18 dry bulk
vessels complementary to the Company's fleet.  They are Japanese built,
including 11 Handysize vessels and 7 Supra/Ultramax vessels.  Grindrod has
seven vessels in its chartered in fleet with purchase options on three.

The combined TMI and Grindrod fleet numbers 40 vessels (including chartered in
vessels with purchase options).

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) (listed in Oslo
BWEK:NO).  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 loading 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.

 

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