Call with management today at 8:30am EST to discuss debt refinancing and capital allocation strategy. The call number is 844-282-4411 and code is 3666878.Global refinancing closed sooner than expected. The Eagle Bulk Shipco 8.25% bonds due in November 2022 and all other debt will be refinanced with a new five-year term loan of $300 million and a revolver of $100 million. The interest rate spread of 210-280 basis points depending on leverage and sustainability measures and annual interest savings approximate $8 million. The new debt is secured by 49 vessels, with four vessels remaining unencumbered, and current revolver availability is $50 million. We have fine tuned our 2021-22 estimates to incorporate financing cost write-offs and will adjust accordingly as additional info is available.New variable dividend starting this quarter. Due to higher cash flow and declining financial leverage, a dividend policy will be instituted. Quarterly dividend will equal a minimum of 30% of quarterly 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.Stock buyback adds to capital allocation tool kit. After issuing equity to partially finance several acquisitions over the past year, the focus is shifting to stock buy backs and a $50 million buy back program has been established.Maintain Outperform rating and price target of $84/share. EGLE's execution on the fleet renewal program has expanded the fleet to the highest level. EGLE is well positioned to benefit from firm dry bulk market fundamentals and higher TCE rates due to expanded operating leverage. We view the recent lackluster stock price performance, up 7% in 3Q2021 and down slightly in October, as unwarranted given improving operating results, and believe that the outlook remains solid. Read More >>