Business Context and Reporting Period
This Form 6-K filing by Tsakos Energy Navigation Limited covers the month of September 2013. The report details the pricing and closing of a public offering of Series C Cumulative Redeemable Perpetual Preferred Shares.
Key Financial Metrics
- Offering Size: $50 million aggregate public offering.
- Shares Issued: 2,000,000 Series C Preferred Shares at $25.00 per share.
- Dividend Rate: 8.875%.
- Net Proceeds: Approximately $47.9 million after underwriting discounts and offering expenses.
- Underwriters: UBS Securities LLC and Morgan Stanley & Co. LLC (joint bookrunners); Jefferies LLC (lead manager); Incapital LLC and DNB Markets, Inc. (co-managers).
- Over-Allotment Option: Underwriters granted the right to purchase up to 300,000 additional shares within 30 days.
Material Changes
The primary material change reported is the increase in consolidated capitalization and cash resources resulting from the closing of the Series C Preferred Share offering on September 30, 2013. The filing references Exhibit 99.1 for the company's capitalization as of June 30, 2013, adjusted for this transaction.
Outlook, Risks, and Management Commentary
The filing does not provide specific forward-looking guidance, management commentary on operational outlook, or a discussion of risks beyond the standard incorporation by reference of the Underwriting Agreement and the prospectus supplement. The transaction was executed under an effective shelf registration statement (No. 333-184042).
Investor Verification Checklist
- Verify the final exercise of the 300,000 share over-allotment option by reviewing subsequent filings.
- Review Exhibit 99.1 for the detailed breakdown of adjusted capitalization and liquidity as of June 30, 2013.
- Examine the Underwriting Agreement (Exhibit 1.1) for specific covenants and redemption terms of the Series C Preferred Shares.
- Confirm the use of the $47.9 million net proceeds in the company's next quarterly or annual report.