Refinancing completed with positive impact on interest costs. A term loan of $17 million on the Epsilon from an existing lender and cash of $7.5 million refinanced existing debt. The new loan is priced at Libor plus 335 basis points and quarterly amortization is $0.3 million with a balloon payment of ~$11 million in five years. Borrowing costs should drop by more than 200 basis points and no secured debt matures over the next two years.Well-timed equity offering materially improved public market float. A private equity offering generated net proceeds of $23.1 million last month. Combined with preferred stock conversions, the public market float expanded to more than 50%.On the prowl with buying power in the $30 million range with current pro forma cash in the $19 million range. While there is no specific plan detailed yet, we believe that acquisitions are likely and bids were recently submitted on MRs up for sale. Assuming leverage in the 50% range, we estimate current buying power in the $30 million range.Current refined product tanker market appears soft, but intermediate term outlook is more favorable. While current rates remain in the $14k/day range, there is no change in our view that intermediate-term fundamentals remain attractive due to a shift in refining capacity in the eastern hemisphere and a limited order book (at the lowest level since 2000). Global refined product demand growth and the shift in refining capacity in the eastern hemisphere should have positive impact on refined product tanker demand. Once the global economy moves beyond the uncertainty triggered by the spread of the Coronavirus, refined product demand should outpace supply over the next year(s) and the MR2 order book is lowest since 2000.Maintain Market Perform rating due to balanced risk/reward profile. We have a positive view on refined product tanker intermediate term fundamentals, based on a limited order book and potential demand recovery, but the near-term outlook appears challenging. While the stock has fallen back recently and is down 19% in March, we believe that the risk/reward profile is balanced.Read More >>