Icon Energy Corp. (NASDAQ: ICON) shares are experiencing significant increase in the most recent trading session, surging 12.73% to trade $2.49. The company’s recent announcement about dividend payments and important strategic updates have sparked substantial investor interest.
Dividend Declaration Boosts Investor Confidence
Icon Energy proposed to pay a cash dividend of $0.08 per common share for the second quarter 2024. According to the company’s strategy of distributing quarterly cash dividends following its initial public offering, the Board of Directors has authorized the $116,000 payment.
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The dividend shall be paid on or about September 30, 2024, to shareholders of record as of September 15, 2024. This move is consistent with the company’s impressive financial performance and shows how committed Icon Energy is to giving its investors value.
Strategic Financing for Vessel Acquisition
In addition to the dividend announcement, Icon Energy has entered into a non-binding term sheet with a prominent international financial institution for a new senior secured credit facility totaling up to $16 million.
This credit facility is intended to finance a portion of the purchase price for a Kamsarmax dry bulk carrier, previously announced on August 8, 2024, and to leverage the company’s existing Panamax dry bulk carrier, M/V Alfa. The lender may also provide up to $75 million in additional financing for future vessel acquisitions, although this amount remains uncommitted and optional.
Secured Credit Facility with Strategic Terms
The New Credit Facility, expected to be concluded before the delivery of the Kamsarmax dry bulk carrier, is anticipated to be secured by a first-priority cross-collateralized mortgage on the vessels, a first-priority assignment of earnings and insurances, and a pledge of the earnings accounts for the vessels.
It will have a four-year term, with an interest rate of 3.95% over SOFR, and will include financial and other covenants customary for such transactions. These strategic financial arrangements position Icon Energy for continued growth and expansion in the maritime sector.
