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IPOreport -- Costamare (CMRE) shipping

|Includes: ALEX, Costamare Inc. (CMRE), DRYS, EGLE, GSL, NMM, SSW
IPO calendar for Nov 1wk

Costamare (NYSE:CMRE), $213mm IPO with a market cap of $965mm
scheduled for Thursday, Nov 4

CMRE Valuation Summary


. Number of ships is down to 41, from 53 in 2008
. Six month revenue is down, net income is down
. Intends to pay a 6.25% annual dividend
. Three customers account for 73% of revenue
. Use of proceeds is unclear

Container ships

. Intends to pay stockholders quarterly dividends of $0.25 per share, or $1.00 per share per year
. 6.25% annual rate

. CMRE’s containership fleet is currently under time charters with eight different charterers.
. Three companies represented 73.9% of revenue in the first half of 2010.
. For the three years ended December 31, 2009, the three largest customers by revenue were A.P. Moller-Maersk, MSC and COSCO; together these three customers represented 77.3%, 71.1% and 73.7% of revenue in 2007, 2008 and 2009.

Costamare Inc. was incorporated on April 21, 2008 for the purpose of completing a reorganization of 53 ship-owning companies then owned by the chief executive officer and other members of the Konstantakopoulos family under a single corporate holding company.

PAID OUT $400MM in distributions
To buy 53 ships.  The number of ships has dropped to 41 as of October 15, 2010
. Since 2008 in relation to the reorganization process paid out distributions to existing stockholders of $400.0 million ($269.0 million of which was paid in 2008 and $131.0 million in 2009).
. No distributions were paid in the first half of 2010.
. The dividends and distributions paid during 2008, 2009 and the first half of 2010, were funded in part by borrowings and in part by cash from operation

. General corporate purposes and potential future vessel acquisitions
. May use a portion of the net proceeds, together with debt financing, to fund contracted containership acquisitions

CMRE Valuation Summary