Terms

Series

Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

9.25%

Rate Type

Fixed To Floating

Annual Dividend

$2.31

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 28, 2027

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Indebtedness And Other Liabilities, Senior Securities (Any Class Expressly Made Senior); Pari Passu With: Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares, Other Parity Securities; Senior To: Common Shares, Junior Securities (Any Class Expressly Made Junior)

Regulatory (Basel III) Call

No

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

Tsakos Energy Navigation Limited's Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Shares offer a $25.00 liquidation preference per share with a fixed dividend rate of 9.25% per annum ($2.3125/share annually) through May 28, 2027, after which the rate converts to three-month LIBOR plus 688.1 basis points. The shares are perpetual with no mandatory redemption date. Dividends are cumulative, meaning any missed payments accumulate and must be paid in full before dividends can be paid on common shares or junior securities — providing investors meaningful protection against dividend interruption. The Series E Preferred Shares sit above common stock and any expressly junior securities in the capital stack, and rank pari passu with the existing Series B, C, and D preferred shares (aggregate liquidation preference of approximately $185.6 million as of March 2017). However, they rank junior to all of TEN's debt and other liabilities. As a holding company issuer with substantial vessel-secured debt obligations, preferred holders are effectively subordinated to a significant debt load (~$1.75 billion in long-term debt as of year-end 2016). There is no regulatory capital call provision, as TEN is a shipping company rather than a regulated financial institution. At the $25.00 offering price, the Series E Preferred Shares yield 9.25% ($0.578125 per quarter) during the fixed-rate period, with payments on February 28, May 28, August 28, and November 28 each year. Because TEN is a non-U.S. (Bermuda-incorporated) shipping company, dividends are unlikely to qualify for the preferential QDI rate or the corporate dividends-received deduction available to U.S. holders of domestically-issued preferred stock — investors should consult tax advisors. The dividend stopper prevents any dividends on common or junior shares unless Series E and parity preferred dividends are current, though the board retains discretion on declaration.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative dividends on the Series E Preferred Shares and any parity preferred are not paid, no dividends may be paid on common shares or other junior securities.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 50 (Average)