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The Company's charter coverage(3) for the following periods, based on the Company's best estimates as of November 9, 2012, was:
2012 (remaining) 89%2012 (full year) 98%2013 59%2014 27%
Capital expenditure requirements and liquidity
As of November 9, 2012, the remaining capital expenditure requirements to shipyards or sellers, net of commissions, for the delivery of the seven newbuilds amounted to $199.5 million, of which $22.9 million is scheduled to be paid in 2012, $67.6 million is scheduled to be paid in 2013, $57.8 million is scheduled to be paid in 2014, and $51.2 million is scheduled to be paid in 2015.
As of November 9, 2012, the Company had $125.4 million in cash and short-term time deposits, $5.9 million in long-term restricted cash, and estimated aggregate borrowing capacity of $49.2 million, consisting of $9.2 million available under existing revolving credit facilities and $40.0 million undrawn availability against our $50.0 million floating rate note.
Additionally, the Company utilizes cash flows from operations generated by its contracted period time charters, and has the ability to borrow additional amounts secured by one existing debt-free vessel and seven newbuild vessels upon their delivery to us.
Dividend Declaration
The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.05 per share payable on or about November 30, 2012 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on November 26, 2012.
The Company had 76,661,451 shares of common stock issued and outstanding as of November 9, 2012.
The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company's existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or might not be paid in the future.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "Due to prolonged challenging chartering market environment, large industry orderbook through 2013 and unstable global financial conditions, our Board has decided to reduce our quarterly dividend. We have paid a dividend consistently since our initial public offering in 2008, and we remain committed to returning cash to our stockholders. We continue to actively manage our orderbook through selective reductions in newbuild acquisition costs, prolonging existing newbuild deliveries and opportunistically acquiring newbuilds and second hand vessels at attractive prices. We maintain our low financial costs by continuing to make proactive prepayments to our banks in order to ensure compliance with our financial covenants. We have a lean and efficient cost structure in relation to operating expenses, management fees and general and administrative expenses. We believe it is important to preserve liquidity in this environment as we aim to further strengthen our balance sheet and deleverage our company while maintaining the ability to make additional acquisitions in the depressed asset market, timely, for the next upward shipping cycle."
