Terms

Series

Series D 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

May 1, 2020

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Indebtedness And Other Liabilities, Any Senior Stock; Pari Passu With: Series B Preferred Stock (7.625%), Series C Preferred Stock (8.50%), Any Other Parity Stock; Senior To: Common Stock, Series A Participating Preferred Stock, Any Other 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-incorporated container shipping company listed on the NYSE, is offering its Series D Cumulative Redeemable Perpetual Preferred Stock at a liquidation preference of $25.00 per share with a fixed dividend rate (exact rate not yet set in this preliminary prospectus). Dividends are cumulative, meaning any unpaid dividends accrue and must be paid in full before any distributions can be made on common or junior equity. The shares are perpetual with no mandatory redemption, but Costamare may call them at $25.00 per share on or after May 2020. The Series D Preferred Stock sits above common stock and any Series A Participating Preferred Stock in the capital structure, and ranks pari passu with the existing 7.625% Series B and 8.50% Series C preferred shares. It is subordinate to all of Costamare's debt and other liabilities. Because Costamare is an operating company (not a holding company with a regulated bank subsidiary), there is no structural subordination or regulatory capital call risk — the preferred ranks directly against the consolidated balance sheet. As of Q1 2015, total long-term debt was approximately $1.47 billion versus total equity of $808 million. The dividend rate and resulting effective yield at par will be set at pricing; dividends are paid quarterly on January 15, April 15, July 15, and October 15, with the first payment due July 15, 2015. The record date falls between 5 and 60 days before each payment date. Because Costamare is a foreign private issuer domiciled in the Marshall Islands, dividends are unlikely to qualify for the preferential 15%/20% qualified dividend income (QDI) tax rate available to U.S. individual investors, nor for the corporate dividends-received deduction (DRD). Dividend payments on junior stock are blocked whenever cumulative preferred dividends are in arrears, providing a meaningful structural protection for Series D holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If cumulative dividends on the Series D Preferred Stock and any parity preferred are not fully paid, no dividends may be paid on common stock or other junior stock, protecting preferred holders from being subordinated to equity distributions.

Other Preferreds from Costamare Inc

Div Score Breakdown

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