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Costamare to Invest Jointly Up to $500M in Equity for Container Vessels

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Costamare Inc. (NYSE: CMRE) announced today that it has entered into a joint venture Framework Deed with York Capital Management Global Advisors LLC (“York”), a New York-based investment advisor firm, to invest jointly up to approximately $500 million in equity for the acquisition of container vessels.

Under the Agreement:

* Costamare Inc. will hold up to a 49% interest in the joint venture. It will have the option to increase its percentage participation from a minimum of 25% to a maximum of 49% within a pre-determined time period after each acquisition commitment has been agreed upon. * Decisions regarding vessel acquisitions will be taken jointly. * The joint venture is expected to be each party's exclusive vehicle for the acquisition of vessels in the container industry during the two-year investment period and it will have a right of first refusal on any container vessel acquisitions proposed by either party. * The term of the joint venture is six years unless earlier terminated by the parties upon the occurrence of certain extraordinary events or disagreements. Upon any termination of the joint venture, Costamare Inc. will have the right to require a split of the vessel fleet between the parties. * Costamare Shipping Company S.A. (“Costamare Shipping”), an affiliate of Costamare Inc. controlled by one of its principal shareholders, will provide shipmanagement services, with the right to subcontract to V.Ships Greece Ltd. and/or Shanghai Costamare Shipmanagement Co. Ltd. Costamare Shipping currently provides shipmanagement services to Costamare Inc. on an exclusive basis.

The board of directors of Costamare Inc. has unanimously approved the Framework Deed and necessary waivers under the existing management agreement between Costamare Shipping and Costamare Inc.

The summary of the Framework Deed set out above is qualified in its entirety by reference to the full text of the Framework Deed, which will be filed with the SEC.

Posted-In: News


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