Management call highlighted global refinancing, variable dividend and buy back program. Catalyst for new capital allocation strategy was the global refinancing. Refinancing of high cost 8.25% bonds and all other debt with a new five-year term $300 million loan and a $100 million revolver saves $8 million/year and sets the stage for new variable dividend policy.New variable dividend starting this quarter. Due to higher cash flow and declining financial leverage, a dividend policy will be instituted based on a simple and straightforward percent of net income. Quarterly dividend will equal a minimum of 30% of the previous quarter's net income with a floor of $0.10/share. First dividend will be based on 3Q2021 results and paid in November. We estimate variable dividends of $22.6 million, or $1.73/share, will be paid in 4Q2021 and $75.7 million, or $5.75/share, will be paid in full year 2022.Capital structure improving and stock buyback adds to capital allocation tool kit. After issuing equity to help finance acquisitions, the focus is shifting and a $50 million buy back program was established. While the global refinancing lowered liquidity into the $150 million range (revolver availability of $50 million and pro forma cash of $100 million) and variable dividends also lowers cash, the improved capital structure allows for buy backs too.Limited changes to 2021-2 EBITDA estimates. Our 2021 EBITDA is $295.7 million based on TCE rates of $23.7k/day. Forward cover was ~75% of 3Q2021 days booked at TCE rates of $28.3k/day, but TCE rates have moved up into the $35k/day range. FYI, forward cover and EBITDA estimates include estimated hedging losses. Our 3Q2021 EBITDA estimate of $95.9 million is based on TCE rates of $29.4k/day and our 4Q2021 EBITDA of $105.6 million is based on TCE rates of $28.0k/day. 2022 EBITDA estimate of $307.6 million is based on TCE rates of $23.9k/day.Maintain Outperform rating and price target of $84/share. Execution on the fleet renewal program has expanded the fleet to the highest level and positions EGLE to benefit from firm dry bulk market fundamentals and higher TCE rates. The successful global refinancing and shift to a variable dividend are additional positives. We view the recent lackluster stock price performance, up only 7% in 3Q2021 and up slightly in October, as unwarranted given improving operating results, and believe that the outlook remains solid. Read More >>