UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
SCHEDULE 13D
(Rule
13d-101)
INFORMATION
TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO
§ 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)
(Amendment
No. 1)1
DHT
Holdings, Inc.
(Name of
Issuer)
Common
Stock, $0.01 Par
Value
(Title of
Class of Securities)
Y2065G105
(CUSIP
Number)
Jerome J.
Lande
MMI
Investments, L.P.
1370
Avenue of the Americas
New York,
New York 10019
(212)
586-4333
(Name,
Address and Telephone Number of Person
Authorized
to Receive Notices and Communications)
March
2, 2010
(Date of
Event Which Requires Filing of This Statement)
If the
filing person has previously filed a statement on Schedule 13G to report the
acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box ¨.
Note: Schedules
filed in paper format shall include a signed original and five copies of the
schedule, including all exhibits. See § 240.13d-7 for
other parties to whom copies are to be sent.
_______________
1
The remainder of this cover page shall be filled out for a reporting person’s
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The
information required on the remainder of this cover page shall not be deemed to
be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934
(“Act”) or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP
NO. Y2065G105
|
1
|
NAME
OF REPORTING PERSON
MMI
Investments, L.P.
|
||
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
(a) x
(b) o
|
|
|
3
|
SEC
USE ONLY
|
||
|
4
|
SOURCE
OF FUNDS
WC
|
||
|
5
|
CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
|
¨
|
|
|
6
|
CITIZENSHIP
OR PLACE OF ORGANIZATION
Delaware
|
||
|
NUMBER
OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7
|
SOLE
VOTING POWER
4,325,000
|
|
|
8
|
SHARED
VOTING POWER
- 0
-
|
||
|
9
|
SOLE
DISPOSITIVE POWER
4,325,000
|
||
|
10
|
SHARED
DISPOSITIVE POWER
- 0
-
|
||
|
11
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,325,000
|
||
|
12
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
|
o
|
|
|
13
|
PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.9%
|
||
|
14
|
TYPE
OF REPORTING PERSON
PN
|
||
2
CUSIP
NO. Y2065G105
|
1
|
NAME
OF REPORTING PERSON
MCM
Capital Management, LLC
|
||
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
(a) x
(b) o
|
|
|
3
|
SEC
USE ONLY
|
||
|
4
|
SOURCE
OF FUNDS
AF
|
||
|
5
|
CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
|
¨
|
|
|
6
|
CITIZENSHIP
OR PLACE OF ORGANIZATION
Delaware
|
||
|
NUMBER
OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7
|
SOLE
VOTING POWER
4,325,000
|
|
|
8
|
SHARED
VOTING POWER
- 0
-
|
||
|
9
|
SOLE
DISPOSITIVE POWER
4,325,000
|
||
|
10
|
SHARED
DISPOSITIVE POWER
- 0
-
|
||
|
11
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,325,000
|
||
|
12
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
|
o
|
|
|
13
|
PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.9%
|
||
|
14
|
TYPE
OF REPORTING PERSON
OO
|
||
3
CUSIP
NO. Y2065G105
|
1
|
NAME
OF REPORTING PERSON
Clay
B. Lifflander
|
||
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
(a) x
(b) o
|
|
|
3
|
SEC
USE ONLY
|
||
|
4
|
SOURCE
OF FUNDS
|
||
|
5
|
CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
|
¨
|
|
|
6
|
CITIZENSHIP
OR PLACE OF ORGANIZATION
USA
|
||
|
NUMBER
OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7
|
SOLE
VOTING POWER
- 0 -1
|
|
|
8
|
SHARED
VOTING POWER
- 0 -
|
||
|
9
|
SOLE
DISPOSITIVE POWER
- 0 -1
|
||
|
10
|
SHARED
DISPOSITIVE POWER
- 0 -
|
||
|
11
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -1
|
||
|
12
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
|
o
|
|
|
13
|
PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%1
|
||
|
14
|
TYPE
OF REPORTING PERSON
IN
|
||
_______________
1See
Item 5.
4
CUSIP
NO. Y2065G105
|
1
|
NAME
OF REPORTING PERSON
Robert
Cowen
|
||
|
2
|
CHECK
THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
(a) x
(b) o
|
|
|
3
|
SEC
USE ONLY
|
||
|
4
|
SOURCE
OF FUNDS
PF
|
||
|
5
|
CHECK
BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d)
OR 2(e)
|
¨
|
|
|
6
|
CITIZENSHIP
OR PLACE OF ORGANIZATION
USA
|
||
|
NUMBER
OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
7
|
SOLE
VOTING POWER
39,000
|
|
|
8
|
SHARED
VOTING POWER
- 0
-1
|
||
|
9
|
SOLE
DISPOSITIVE POWER
39,000
|
||
|
10
|
SHARED
DISPOSITIVE POWER
- 0
-1
|
||
|
11
|
AGGREGATE
AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
39,0001
|
||
|
12
|
CHECK
BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
|
o
|
|
|
13
|
PERCENT
OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less
than 1%1
|
||
|
14
|
TYPE
OF REPORTING PERSON
IN
|
||
_______________
1See Item
5.
5
CUSIP
NO. Y2065G105
The
following constitutes Amendment No. 1 to the original Schedule 13D filed by the
undersigned (“Amendment No. 1”). This Amendment No. 1 amends the
Schedule 13D as specifically set forth.
Item
1.
Security and
Issuer.
|
|
Item
1 is hereby amended and restated to read as
follows:
|
This
statement relates to the Common Stock, par value $0.01 per share (the “Shares”),
of DHT Holdings, Inc. (the “Issuer”), the successor to DHT Maritime,
Inc. The address of the principal executive offices of the Issuer is
26 New Street, St. Helier, Jersey, JE23RA, Channel Islands.
Item
3. Source and Amount of Funds
or Other Consideration.
The first
paragraph of Item 3 is hereby amended and restated to read as
follows:
The
aggregate purchase price of the 4,325,000 Shares owned by MMI Investments is
$17,035,570; the source of funds is MMI Investments’ working
capital.
Item
4. Purpose of
Transaction.
Item 4 is
hereby amended to add the following:
On March
2, 2010, MMI Investments sent a letter to Erik A. Lind, the Chairman of the
Board of the Issuer, expressing its frustration with the underperformance of the
Shares, the Issuer’s depressed valuation, poor acquisition track record, and the
Board of Directors’ (the “Board’s”) decision to eliminate the Issuer’s
dividend. In the letter, MMI Investments demanded the reinstatement
of the Issuer’s dividend at a $0.10 per share quarterly rate and the immediate
addition to the Board of Robert N. Cowen, a shipping industry veteran with over
30 years experience (including with the Issuer’s former corporate parent,
Overseas Shipholding Group, Inc.), in order to encourage strategic stability and
focus and improved the Issuer’s stock performance. A copy of the
press release issued March 3, 2010 by MMI Investments, which contains the full
text of the letter, is filed as Exhibit 99.1 hereto and is incorporated herein
by reference.
Item
5. Interest in Securities of
the Issuer.
Items
5(a), (b) and (c) are hereby amended and restated to read as
follows:
(a)-(b) The
aggregate percentage of Shares reported owned by each Reporting Person is based
upon 48,702,181 Shares outstanding as of March 1, 2010, which is the total
number of Shares outstanding as reported in the Issuer's Form 6-K filed with the
SEC on March 1, 2010.
As of the close of business on March 2,
2010, MMI Investments directly owned 4,325,000 Shares, constituting
approximately 8.9% of the Shares outstanding. MMI Investments has the
sole power to direct the vote and disposition of such Shares on the date of this
Statement. MCM does not directly own any Shares. However,
by virtue of being the general partner of MMI Investments, MCM may be deemed to
be the beneficial owner of the Shares owned by MMI Investments and to have sole
power over the voting and disposition of such Shares as a result of its having
the sole power to make voting and disposition decisions on behalf of MMI
Investments with respect to such Shares. Mr. Lifflander does not
directly own any Shares. However, as a member of a “group” for the
purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended,
Mr. Lifflander may be deemed to beneficially own the Shares owned by MMI
Investments. Mr. Lifflander disclaims beneficial ownership of such
Shares, except to the extent of his pecuniary interest
therein.
6
CUSIP
NO. Y2065G105
As of the close of business on March 2,
2010, Mr. Cowen directly owned through joint brokerage accounts with his spouse
39,000 Shares, constituting less than one percent of the Shares
outstanding. Mr. Cowen, as a member of a “group” for the
purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended,
may be deemed to beneficially own the 4,325,000 Shares owned by MMI
Investments. Mr. Cowen disclaims beneficial ownership of the Shares
owned by MMI Investments and Mr. Cowen’s spouse disclaims beneficial ownership
of the Shares owned by Mr. Cowen.
Except as described above, as of the
date hereof, to the Reporting Persons’ knowledge, none of the persons listed on
Schedule I owns any Shares or has any right to acquire, directly or indirectly,
any beneficial ownership of Shares.
(c) Schedule
A annexed hereto lists all transactions in the Shares by the Reporting Persons
since the filing of the original Schedule 13D. All of such
transactions were effected in the open market, unless otherwise
specified.
|
Item
7.
|
Material to be Filed
as Exhibits.
|
|
|
99.1
|
Press
Release issued March 3, 2010.
|
7
CUSIP
NO. Y2065G105
SIGNATURES
After
reasonable inquiry and to the best of his knowledge and belief, each of the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: March
3, 2010
|
MMI
INVESTMENTS, L.P.
|
||
|
By:
|
MCM
Capital Management, LLC
General
Partner
|
|
|
By:
|
/s/ Jerome J. Lande | |
|
Jerome
J. Lande
|
||
|
Executive
Vice President
|
||
|
MCM
CAPITAL MANAGEMENT, LLC
|
||
|
By:
|
/s/ Jerome J. Lande | |
|
Jerome
J. Lande
|
||
|
Executive
Vice President
|
||
| /s/ Clay B. Lifflander | |
|
Clay
B. Lifflander
|
| /s/ Robert Cowen | |
|
Robert
Cowen
|
8
CUSIP
NO. Y2065G105
SCHEDULE
A
Transactions in the Shares
During the Past 60 Days
|
Shares
of Common Stock
Purchased / (Sold)
|
Price
Per
Share($)
|
Date
of
Purchase /
Sale
|
MMI
Investments, L.P.
|
100,000
|
3.53
|
2/05/10
|
|
|
1,200
|
3.55
|
2/10/10
|
|
|
13,300
|
3.73
|
2/18/10
|
|
|
35,500
|
3.72
|
2/19/10
|
|
|
50,000
|
3.68
|
3/01/10
|
|
|
175,000
|
3.89
|
3/02/10
|
9
Exhibit 99.1
NEWS
RELEASE
Media
Contact:
Jeff
Siegel
(516)
569-4271
MMI
INVESTMENTS, L.P. DEMANDS DHT HOLDINGS, INC. REINSTATE ITS DIVIDEND AND
STRENGTHEN ITS BOARD
NEW YORK, NY, March 3, 2010 -
- - MMI Investments, L.P., the largest stockholder of DHT Holdings, Inc.
(NYSE:DHT), announced today that it has sent a letter to Erik A. Lind, Chairman
of the Board of DHT, demanding a reinstatement of the company’s dividend and the
addition of Robert N. Cowen, a shipping industry veteran with over 30 years of
experience including with DHT’s former parent company, Overseas Shipholding
Group, Inc., to the DHT Board of Directors.
Clay
Lifflander, President of MMI, stated: “In the six months through February since
DHT eliminated its dividend, a move that was never necessary in our view, the
stock price dropped more than -30% at the same time as the average total return
of its peers, all of whom currently pay dividends, was +19.5%. We
believe DHT’s stockholders deserve better returns on their investment and
improved performance from management and the Board. We therefore
strongly urge the reinstatement of a dividend of $0.10 per share quarterly and
the appointment of Bob Cowen to DHT’s Board of Directors.”
The full
text of MMI’s letter follows:
March 2,
2010
Erik A.
Lind
Chairman
of the Board
DHT
Holdings, Inc.
26 New
Street
St.
Helier, Jersey JE23RA
Channel
Islands
Dear Mr.
Lind:
As the largest stockholder of DHT
Holdings, Inc. (“DHT” or the “Company”), MMI Investments, L.P. (“MMI”) is
greatly frustrated with the poor performance of DHT stock, which is near its
all-time low, and DHT’s valuation, which is at a severe discount to its peer
group (see attachment: “DHT Peer Valuation”). We believe this
underperformance is directly related to repeated poor decisions by management
and the Board, such as the elimination of the Company’s dividend, and that
stockholder value will continue to erode unless immediate action is
taken. The board should act immediately to reinstate the dividend at
a $0.10 per share quarterly rate and appoint as a member of the Board, Robert N.
Cowen, a shipping industry veteran with over 30 years experience (including with
DHT’s former corporate parent, Overseas Shipholding Group, Inc. (“OSG”)), as
detailed below:
|
|
1)
|
Reinstate
the Dividend
|
DHT’s
dividend strategy has been consistently erratic, shifting between paying out all
available cash flow to paying a regular $0.25 quarterly dividend “to provide
shareholders with a stable and visible distribution”1, to the dividend’s complete elimination in
September – six months after the stock market bottomed and began its historic
rise. This last decision was particularly toxic to stockholders,
causing shares to plummet by more than 21% on the day of its announcement, due
in part, we believe, to its inexplicability in the face of the nearly $40
million in free cash flow virtually guaranteed to the Company by its long-term
charter agreements with OSG.
DHT’s
zero dividend policy is not only inconsistent with its own intrinsic
fundamentals, it is also dramatically out-of-step with its
peers. DHT’s free cash flow yield2 at 23% is more than quadruple the mean of its
comparable companies, who average a 5.3% dividend yield and who all currently
pay dividends, including those who previously eliminated their dividend during
the crisis. MMI recommends a quarterly dividend of $0.10 per share,
which would leave significant free cash flow for debt repayment or other
deployment in 2010 and 2011, even with the scheduled amortization of debt in
2011 (see attachment: “DHT Dividend Analysis”). A $0.10 per share
quarterly dividend would also make DHT’s dividend yield a robust 11.4%, at a
premium to its peers – a virtual necessity for stock price appreciation, which
would drive the yield closer to parity.
|
|
2)
|
Strengthen
the Board
|
The
Board’s non-dividend capital allocation decisions have also frequently seemed
rash, and been dilutive to stockholder value. DHT’s only acquisitions
since inception, the two Suezmax tanker purchases announced in 2007, were
acquired at the top of the market for a total expenditure of $183
million. Today they are worth roughly half that amount in our
opinion. In light of this poor acquisition track record, we believe
the stated reason for eliminating the dividend, i.e. augmentation of the
Company’s cash balance for potential acquisitions, only served to further
unnerve stockholders.
We also
believe this Board’s decision to complete an equity offering in March 2009 was
similarly troubling and ill-timed. The offering came near the bottom
of the stock market crisis, was priced less than a dollar above DHT’s all-time
low stock price and at a dividend yield of 23% (which would subsequently become
unsustainable because of the offering itself). Notably the
unsustainable $0.25 per share quarterly dividend was eliminated only after it
had been paid once to the new stockholders. As if to add insult to
injury, at the time of the dividend elimination the offering proceeds were
concurrently used to prepay debt in excess of the Company’s required covenant
(ironically to the level at which DHT would be permitted to issue further
dividends), and without receiving any concessions from its lender.
This past performance suggests that
additional expertise and oversight at the Board level would benefit DHT and its
stockholders. Therefore MMI strongly urges the immediate addition of
Robert N. Cowen to the DHT board. Bob Cowen has over 30 years of
experience in the oil tanker and dry bulk shipping business, having been Chief
Operating Officer of DHT’s former parent company, OSG, and Chairman and Chief
Executive Officer of OceanFreight Inc., a dry bulk shipping company for which he
led its successful IPO and fleet start-up. The future opportunities afforded by
the current industry weakness and the challenges presented by DHT’s escalating
costs, both corporate and operating, require seasoned operational leadership
which could augment the Board’s largely finance-related
backgrounds. We believe Bob Cowen’s experience, intelligence and
business acumen are well-suited to DHT’s challenges and opportunities, and that
he would be a great asset to the Board.
2
Calculated as DHT consensus 2010 free cash flow divided by market capitalization
of $171 million on 2/26/10. All references herein to stock price,
performance, valuations and yields refer to DHT’s closing price of $3.52 on
2/26/10.
We recommend expansion of the Board in
part because of management’s comments on the February 16th,
fourth quarter of 2009 earnings call, which suggest to us that they may not
share stockholders’ frustration with the performance of DHT’s
shares. Notably, Chief Executive Officer Ole Jacob Diesen’s remark
that “…If we were to buy back shares, the share price has to be even lower”
indicates an astounding belief that the stock is presently
over-valued. We believe this is completely inconsistent with the
facts. As we demonstrate in the attached “DHT Peer Valuation”, DHT’s
stock price is presently at a 75% or greater discount to its value at its peers’
average multiples of 2010 and 2011 EBITDA, i.e. an implied stock price of
approximately $6.16-$6.41 (versus $3.52 on 2/26/10) were it valued like its
peers. On a net asset value basis (using management’s last estimate
of DHT’s fleet value, $400 million) DHT is trading for less than its fleet value
on an unchartered basis,
despite the roughly $100 million at least in free cash flow to be collected by
DHT through 2012 when the charters begin to roll off. This is in
spite of the premium-worthy stability of DHT’s free cash flow generation from
the long-term charters, and assumes virtually no additional hire in the next two
years from improvement in rates. However, if market conditions
continue to improve such that DHT does earn additional hire or fleet values
rise, we believe the preceding valuation estimates will prove to be far too
conservative.
In the
six months since DHT eliminated its dividend its stock has dropped -30.7%
whereas the average total return of its peers is +19.5%. We believe
investors, many of whom chose DHT for its fundamental stability, have suffered
more than enough capital loss and income disruption in service of a strategy so
opaque and ill-communicated as to suggest there is no real strategy at
all. We urge the immediate appointment of Mr. Cowen to the Board and
reinstatement of the dividend to encourage strategic stability and focus and
improved stock performance. Please inform us of your intentions
regarding these two proposals by March 12, 2010. Mr. Cowen has
indicated to me that he is available to discuss these issues with you, as are
we. Please contact me at (212) 586-4333 with any
questions.
Sincerely,
/s/ Clay
Lifflander
Clay
Lifflander
Attachments
Cc: Ole
Jacob Diesen
Robert N. Cowen
Members of the Board of Directors
Robert N. Cowen
Members of the Board of Directors
|
DHT
Peer Valuation
|
|||||||||||||||||||||||||||||||||
|
($
in millions)
|
Enterprise
Value /
|
CY10Eb
|
6-Month
|
||||||||||||||||||||||||||||||
|
Price
|
Market
|
CY09Ea
|
CY10Ea
|
CY11Ea
|
FCF
|
Total
Stock
|
Dividend
|
||||||||||||||||||||||||||
|
Company
|
Ticker
|
2/26/10
|
Value
|
EBITDA
|
EBITDA
|
EBITDA
|
Yield
|
Return
|
Yieldc
|
||||||||||||||||||||||||
|
General
Maritime
|
GMR
|
$ | 7.23 | $ | 401 | 9.7 | x | 9.2 | x | 9.5 | x | 18.8 | % | -1.7 | % | 6.9 | % | ||||||||||||||||
|
Frontline
Limited
|
FRO
|
26.95 | 2,098 | 9.7 | x | 8.8 | x | 8.9 | x | -3.1 | % | 29.0 | % | 3.7 | % | ||||||||||||||||||
|
Overseas
Shipholding
|
OSG
|
44.49 | 1,351 | 13.4 | x | 7.9 | x | 6.5 | x | -16.1 | % | 30.8 | % | 3.9 | % | ||||||||||||||||||
|
Teekay
Corporation
|
TK
|
25.14 | 1,842 | 11.3 | x | 9.1 | x | 8.8 | x | 5.5 | % | 49.4 | % | 5.0 | % | ||||||||||||||||||
|
Tsakos
Energy
|
TNP
|
14.91 | 562 | 9.2 | x | 10.0 | x | 9.4 | x | -2.3 | % | -3.5 | % | 4.0 | % | ||||||||||||||||||
|
Nordic
American
|
NAT
|
29.06 | 1,363 | 21.1 | x | 9.8 | x | 8.4 | x | -6.2 | % | -0.4 | % | 3.4 | % | ||||||||||||||||||
|
Ship
Finance
|
SFL
|
15.90 | 1,229 | 11.2 | x | 12.2 | x | 13.5 | x | 19.3 | % | 32.6 | % | 7.5 | % | ||||||||||||||||||
|
Knightsbridge
Tankers
|
VLCCF
|
15.41 | 264 | 9.9 | x | 5.9 | x | 5.9 | x | 23.1 | % | 20.3 | % | 7.8 | % | ||||||||||||||||||
|
Average
|
11.9 | x | 9.1 | x | 8.9 | x | 4.9 | % | 19.5 | % | 5.3 | % | |||||||||||||||||||||
|
DHT
Holdings
|
DHT
|
$ | 3.52 | $ | 171 | 5.8 | x | 6.8 | x | 6.5 | x | 23.0 | % | -30.7 | % | 0.0 | % | ||||||||||||||||
|
Implied
DHT Price based on Peer Metric
|
$ | 12.18 | $ | 6.16 | $ | 6.41 | $ | 16.60 | $ | 6.07 | |||||||||||||||||||||||
|
%
Appreciation from Current Price
|
245.9 | % | 75.0 | % | 82.2 | % | 371.5 | % | 72.5 | % | |||||||||||||||||||||||
(a)
Market Value, Enterprise Value, and EBITDA estimates are from Cantor
Fitzgerald's "The Ship's Log" research report dated March 1,
2010.
(b) FCF
estimates are from various Wall Street research analysts.
(c)
Bloomberg indicated gross yield.
|
DHT
Dividend Analysis
|
||||
|
($
in millions)
|
||||
|
Long-Term
Debt
|
$ | 293.0 | ||
|
Derivative
Financial Instruments
|
18.4 | |||
|
Total
Financing
|
311.5 | |||
|
Assumed
Ship Value a
|
400.0 | |||
|
Leverage
Ratio
|
1.28 | x | ||
|
12/31/09
Cash
|
72.7 | |||
|
Required
Pay-Down for 1.35x covenant
|
(15.2 | ) | ||
|
Pro
Forma Cash
|
57.5 | |||
|
Consensus
2010 FCF b
|
39.3 | |||
|
MMI
Proposed Dividend ($0.10 per quarter)
|
19.5 | |||
|
Required
Debt Amortization
|
0.0 | |||
|
2010
Excess Cash Flow
|
19.8 | |||
|
Ending
2010 Cash
|
77.3 | |||
|
Consensus
2011 FCF b
|
48.2 | |||
|
MMI
Proposed Dividend ($0.10 per quarter)
|
19.5 | |||
|
Required
Debt Amortization
|
16.0 | |||
|
2011
Excess Cash Flow
|
12.7 | |||
|
Ending
2011 Cash
|
90.1 | |||
(a) Per
management's comments on the 3Q09 earnings call on November 24,
2009.
(b) Based
on the average of Jefferies, Cantor Fitzgerald, Dahlman Rose and JPMorgan
estimates.
###