Costamare Inc. announces spin-off of its dry bulk business

Greece’s Costamare Inc., one of the world’s leading owners and providers of containerships and dry bulk vessels for charter. has announced its intent to spin-off the Company’s dry bulk business into a standalone company, Costamare Bulkers Holdings Limited. The

planned spin-off will result in two separate, publicly traded companies:

Costamare Inc. will remain a global container shipping provider, retaining the owned container vessels and Neptune Maritime Leasing Limited businesses, while Costamare Bulkers Holdings Limited will be an international owner and operator of dry bulk vessels and will hold the owned dry bulk vessels and the CBI operating platform.

The Costamare Inc. board says it believes the proposed separation will unlock the inherent value within the two companies, which have unique growth prospects and investment opportunities. The separation is expected to provide compelling benefits for all stakeholders, including:

-        Improved financial flexibility to pursue distinct operating priorities and strategic initiatives focused on the container and dry bulk shipping markets, respectively.

-        Enabling management teams of both companies to enhance focus on individualized opportunities for long-term growth and profitability.

-        Two separate, pure-play investment opportunities for different investor bases.

-        A simplified structure with separate, focused balance sheets and capital allocation strategies tailored to each business driving operating efficiency and value creation. 

Shares of Costamare Bulkers Holdings Limited are expected to be listed on the New York Stock Exchange.

Costamare Inc. is targeting to complete the spin-off as soon as practicable this calendar year, subject to various conditions, including regulatory approvals and obtaining the final approval of the Costamare Inc. board of directors.

While no definitive decision has been made, the spin-off is expected to be completed via a pro rata distribution by Costamare Inc. of all of the shares it owns of Costamare Bulkers Holdings Limited to Costamare Inc. shareholders based on a distribution ratio that is set at the time the distribution is formally declared. Morgan Stanley & Co. LLC is serving as financial advisor to Costamare Inc. and Cravath, Swaine & Moore LLP is serving as legal counsel.

Costamare has 51 years of history in the international shipping industry and a fleet of 68 owned containerships, with a total capacity of approximately 513,000 TEU and 38 owned dry bulk vessels

with a total capacity of approximately 3,016,000 DWT (including one vessel it has agreed to sell). The Company also has a dry bulk operating platform (CBI) which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilise hedging solutions.