Dredging awards of $112.8 million announced. Awards include capital projects of $86.3 million, coastal protection of $15.6 million and maintenance of $10.9 million. The two capital projects are Mobile Harbor Phase 3 for $53.9 million and Golden Triangle Marsh Creation Project for $32.4 million. The coastal protection work is beach renourishment on Captiva Island for $15.6 million. The maintenance work is the Vicinity of McKellar Lake Harbor Project for $7.6 million and in Jacksonville Harbor for $3.3 million.A loss by a slight margin in Louisiana. Bids were opened by the Coastal Protection & Restoration Authority (CPRA) on Wednesday for the Lake Borgne Marsh Creation Project (PO-0180) in Louisiana. Mike Hooks was the apparent low bidder at $60.7 million, with GLDD closely behind at $63.7 million. Among the seven bids, the highest bid was $102.0 million, and the low bid was below the designer’s estimate of $86.0 million. While a setback, the dredging market outlook remains robust and other awards are on the horizon. In our view, GLDD will continue to win work while maintaining bidding discipline.Improved credit profile helps refinance debt at lower cost. Debt of $325 million that matures in May 2022 will be called at par shortly following the successful pricing of new debt of $325 million due in 2029 at an interest rate of 5.25%. The interest drop of 275 basis points reduces annual interest by $4.5 million in 2021 and $8.9 million in 2022. Terming out debt for eight years on attractive terms and generating positive free cash flow should enable the asset base to be enhanced and expanded from a position of strength.Maintain Outperform rating and price target of $17.05/share due to recent awards, the fleet renewal program and disciplined capital allocation. With positive operating results, significant awards and the successful debt refinancing, the risk/reward profile remains favorable. The stock has fallen back by 11% in May after 1Q2021 operating results were released and is up only 6% this year. We are caught a bit surprised by the recent weakness and believe that current EV multiple of 7.2x 2021E EBITDA is attractive. Potential catalysts include FID on the rock dumper barge and infrastructure legislation. Read More >>