Tsakos eyes $33.85 million at-the-market sale of preferreds and stock

By Devika Patel

Knoxville, Tenn., Oct. 18 – Tsakos Energy Navigation Ltd. plans an at-the-market sales agreement with Stifel Nicolaus & Co. Inc. and DNB Markets Inc. for up to $33,849,539 of common stock and three series of preferred stock, according to a 424B5 filed with the Securities and Exchange Commission.

The company registered to sell up to $40 million of the securities on Jan. 31 and sold 1,165,717 common shares and 24,803 series D preferreds for about $6 million of net proceeds.

The preferred issues included in the agreement are the 8% series B cumulative redeemable perpetual preferreds (NYSE: TNPPrB), the 8.875% series C cumulative redeemable preferreds (NYSE: TNPPrC) and the 8.75% series D cumulative redeemable preferreds (NYSE: TNPPrD).

The dividend on the 8% and 8.875% preferreds may be increased if the company fails to comply with certain covenants, if the company defaults on certain credit facilities, if four quarterly dividend payments are in arrears or if the securities are not redeemed by their respective redemption dates.

The series B preferreds are redeemable July 30, 2018, and the Cs are redeemable on Oct. 30, 2018.

The series D preferreds are redeemable on April 29, 2020.

Tsakos is an Athens, Greece-based provider of international seaborne petroleum product and crude oil transportation services.

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