Worldship financing secured. A commitment on a five year term loan for ~$16.9 million has been secured with closing expected in November. Annual amortization is ~$2.2 million with a balloon of $6.1 million at maturity. Pricing of Libor plus 305 basis points is attractive and might drop if emission reduction targets are hit.Stock price weakness might trigger buy backs. Pro forma 4Q2021 cash estimate is $58 million and Dukeship will be unencumbered so financial flexibility is good. While the Dukeship acquisition might have pushed out buy backs since retiring convert debt is the near-term priority, buy backs below the conversion price of $1.20/share would also be attractive.No change in 2021-2 EBITDA estimates. Our 2021 EBITDA estimate of $87.3 million is based on TCE rates of $24.5k/day. For 4Q2021, cover is 50% at ~$32.0k/day and EBITDA of $40.3 million is based on TCE rates of $35.0k/day. Our 2022 EBITDA estimate of $102.2 million is based on TCE rates of $24.5k/day, with visibility limited into next year with only three Capes fixed at a TCE rate north of $30.0k/day (forward cover of <20%). We have factored in typical seasonality, with TCE rates of $21.0k/day in 1Q2022, $24.5k/day in 2Q2022, $30.0k/day in 3Q2022 and $22.5k/day in 4Q2022.Staying positive on Cape market, but expecting continued volatility. After moving sharply higher into the $80k/day range, Cape TCE rates have quickly retrenched into the $40.0k/day range. Added volatility is expected, but our outlook remains positive based on infrastructure projects and global stimulus programs plus port congestion and coal shortages. Also, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply.Maintain Outperform rating and price target of $1.85/share. As highlighted last month's virtual NDR, a larger Cape fleet and improved financial position create a more stable operating platform. While limited buy backs and dividends over the near term might disappoint some investors, refinancing convert debt remains a higher priority at the current stock price. While up 96% this year, the stock is down 27% in October and the risk/reward profile is very favorable. The fleet expansion and a bias toward time charters with indexed rates should help capture upside rate optionality and reduce financial leverage. Read More >>