Terms

Series

7.625% Series B Cumulative Redeemable Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.625%

Rate Type

Fixed

Annual Dividend

$1.91

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

August 6, 2018

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Indebtedness And Other Liabilities, Senior Stock; Pari Passu With: Parity Stock; Senior To: Common Stock, Series A Participating Preferred Stock, Junior Stock

Regulatory (Basel III) Call

No

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,000,000

Prospectus Summary

Costamare Inc., a Marshall Islands-based containership owner and operator, is offering 2,000,000 shares of its 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock at a liquidation preference of $25.00 per share, with an annual dividend of $1.90625 per share ($0.4765625 quarterly). The stock is callable at par on or after August 6, 2018. Crucially, dividends are cumulative — meaning any missed payments accrue and must be paid in full before the company may pay dividends on common or junior stock, providing meaningful downside protection to preferred holders. The Series B Preferred Stock sits above common stock and any junior equity in Costamare's capital structure, and ranks pari passu with any future parity preferred stock. However, it is expressly junior to all of Costamare's indebtedness and other liabilities — a meaningful consideration given the company carried approximately $1.74 billion in total debt as of mid-2013. There is no regulatory capital call provision, as Costamare is a shipping company rather than a financial institution. Investors bear the risk that substantial senior debt obligations must be satisfied before preferred claims in a liquidation scenario. At the $25.00 offering price, the Series B yields exactly 7.625% per annum, paid quarterly on January 15, April 15, July 15, and October 15 (commencing October 15, 2013). Because Costamare is a Marshall Islands corporation and not a U.S. domestic corporation, dividends are unlikely to qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the dividends-received deduction (DRD) for U.S. corporate holders. The dividend stopper prevents any payments on common or junior stock until all accumulated preferred dividends are current. Record dates fall between 5 and 60 days before each payment date.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative dividends on the Series B Preferred Stock and any parity stock have not been paid, the company may not declare or pay dividends on common stock or any other junior stock (except dividends paid in junior stock).

Other Preferreds from Costamare Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 51 (Average)