Total debt of $179 million, including secured debt of $117 million and subordinated debt of $62 million, was restructured. While secured debt of $60 million was refinanced last year, agreements to restructure additional secured debt of $57 million and subordinated debt of $62 million were recently finalized. As a result, secured debt is $119 million, subordinated debt is $17 million and convert debt is $39 million, or total debt of $175 million.

Favorable outcome is a reflection of solid bank group relationships and the forging of a new relationship with Jelco.  Other goals achieved include preserving cash, pushing out maturities, lowering interest expense and improving financial flexibility. While negotiations took longer than expected, the agreements create some financial breathing room, establish a solid financial platform, and …

Four awards for $60.9 million to be included in year-end 2020 backlog. The four awards (three maintenance and one coastal protection) include a total work of $60.9 million in Florida and Georgia. Three of the four awards should be completed in 1Q2021 and the fourth extending out into 3Q2021.

Dredging market outlook remains solid and potential infrastructure spending creates tailwind.  The awards are positive signals after the loss on the Spanish Ridge work in Louisiana in December. Other positives include stronger global LNG prices that could help move the NextDecade (NEXT) LNG project to FID and the potential higher infrastructure spending in fiscal stimulus plans …

Fleet renewal continues with another Ultramax acquisition. The fleet renewal program, which began in April 2016, continues. Another SDARI-64 Ultramax (to be renamed Stockholm Eagle), which was built in 2016 at Chengxi Shipyard and is outfitted with scrubbers, will be acquired for $17.65 million. The acquisition adds to two Ultramax acquisitions slated to close in 1Q2021. We believe that these moves represent a shift to growth after selling a total of five older Supramaxes with an average age of 18 years since mid-2020. The impact is positive from the perspectives of age profile and fuel consumption. Pro forma for the pending transactions, the fleet will total 48 vessels with an average age of ~8.8 years.

Fine tuning 2021 EBITDA estimate to reflect new transaction.  No change to 2020 EBITDA estimate of $55.4 million based on TCE rates of $9.9k/day. The new transaction has a slight positive impact and our new 2021 EBITDA estimate is $77.2 million (up from $75.6 million). Forward cover is light into next year, but TCE rates have moved higher after firmer market fundamentals kicked in late 2Q2020 …

Three modern, eco Ultramaxes will be acquired in exchange for six older Handysizes in a transaction designed to modernize and focus the asset base while maintaining liquidity since no capital will be required. A total of nine vessels are involved in the asset swap. Three ~63k DWT Ultramaxes, built in 2014 and 2015 at Jiangsu shipyard, will be acquired and renamed. In return, six Handysize vessels will be delivered to the counter party. The Handys were built in 2010 and 2011, with the first five built at the SPP shipyard and the last built at Hakodate. The cash neutral asset swap will enhance the asset base, complement in-house commercial platform, lower the average age of the fleet by 0.3 years; and avoid drydocking and ballast water treatment system (BWTS) costs of ~$3.6 million on three Handysizes.

Two other asset sales announced.  Exiting Handysize sector. Two other vessels will be sold for a total of $15.35 million; the Baltic Cougar (2009-built Supramax) for $7.60 million, and the Baltic Hare (2009-built Handysize) for $7.75 million. The exit from the Handysize sector will be complete after the transactions close and the fleet will be more focused on the Cape, Ultra and Supra sectors …

Fleet renewal adds another Ultramax acquisition and Supramax sale. The fleet renewal activity recently picked up, and it now includes three Supramax sales, two pending Supramax sales and two pending Ultramax acquisitions in 2H2020. Fleet renewal improves age profile and boosts fuel efficiency, in addition to avoiding special survey/BWTS costs of in the $1.25 million range per vessel.

Fine tuning 2021 EBITDA estimate to reflect new transactions and firmer dry bulk market.  We are maintaining our recently fine-tuned 2020 EBITDA estimate of $55.4 million based on TCE rates of $9.9k/day. Since the asset sales partially offset the Ultramax acquisitions, there isn’t much of a change to our 2021 EBITDA estimate of $75.6 million (up from $74.6 million). EBITDA should move up ~35% as …

Another fixture at a higher than expected rate. The Synergy Antwerp, a 2008-built intermediate container ship (4,253 teu) secured a 32-35 month extension at $18k/day. Not only is the rate $3k/day higher than expected, the long-term extension starts on January 1st, three months earlier than expected. The new fixture complements other fixtures announced earlier this month, namely the 12-14 month extension on the EM Astoria at $18.7k/day (~$4.5k/day higher than expected), and the 12-13 month time charter on the Evridiki G at $15.5k/day (~$1.5k/day higher than expected).

No impact on 2020 EBITDA estimate of $12.4 million based on TCE rates of $9.2K/day.  Net TCE revenue is mostly locked in with only the Oakland on an indexed rate …