Terms

Series

Series C Cumulative Redeemable Perpetual Preferred Stock

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

January 1, 2019

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: Series B Preferred Stock, 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

Prospectus Summary

Costamare Inc., a Marshall Islands-based containership owner and operator, is offering shares of its Series C Cumulative Redeemable Perpetual Preferred Stock at a liquidation preference of $25.00 per share and par value of $0.0001. The coupon rate was not disclosed in this preliminary prospectus but will be fixed and not subject to adjustment. The stock is callable at $25.00 per share on or after January 2019. Critically, dividends are cumulative — meaning any missed quarterly payments on January 15, April 15, July 15, and October 15 accrue and must be paid in full before any distributions can be made to common stockholders. The Series C Preferred Stock ranks senior to Costamare's common stock and Series A Participating Preferred Stock (if issued), pari passu with the existing Series B Preferred Stock, and junior to all of Costamare's debt obligations and other liabilities. There is no regulatory capital call provision, as Costamare is not a bank or regulated financial institution. As a holding company issuer, holders are structurally subordinated to all creditors at both the parent and subsidiary operating levels. There is no mandatory redemption; the company may optionally redeem with 30–60 days' written notice. The effective yield at par will depend on the final coupon rate, which was blank at the time of filing. Dividends are paid quarterly. Because Costamare is incorporated in the Marshall Islands and not a U.S. domestic corporation, dividends are unlikely to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual U.S. holders or the dividends-received deduction (DRD) for corporate holders — investors should consult their tax advisors. A dividend stopper prevents any dividend on common or other junior securities until all accumulated Series C dividends are fully current, providing meaningful dividend protection relative to common equity.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If accumulated dividends on the Series C Preferred Stock (and any parity stock) have not been fully paid, the company cannot declare or pay dividends on its common stock or any other junior securities.

Other Preferreds from Costamare Inc

Div Score Breakdown

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