Diana Containerships Changes Dividend Policy, Increases Distributions
Diana Containerships Inc. (Nasdaq: DCIX) today announced that the Company anticipates that it will be able to pay quarterly cash dividends in excess of the amounts contemplated by its dividend policy determined at the time of the Company's initial public offering in June 2011, while continuing to maintain sufficient liquidity to meet current and expected working capital obligations. Accordingly, the Company's board of directors has determined to amend the Company's dividend policy, effective immediately. Pursuant to the revised policy, the Company intends to declare a variable quarterly dividend each February, May, August and November equal to a substantial portion of its available cash from operations during the previous quarter, after the payment of cash expenses and reserves for scheduled drydockings, intermediate and special surveys and other purposes as the Company's board of directors may from time to time determine are required, taking into account contingent liabilities, the terms of any credit facility, the Company's growth strategy and other cash needs and the requirements of Marshall Islands law.
The Company expects to pay a dividend with respect to the second quarter of 2012 in the amount of $0.30 per share to all holders of the Company's common shares outstanding as of a record date to be determined by the Company's board of directors, assuming (i) the continued performance of the Company's current time charters and no unexpected off-hire periods; (ii) that the Company does not incur any unanticipated extraordinary cash expenses such as vessel repairs, mandated upgrades or modifications or other liabilities not covered by cash reserves established by the board of directors; and (iii) no material changes in vessel operating or financing expenses.
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