-- first, 100% to all shares of Class A common stock, pro rata, until
they receive $0.50 per share;
-- second, 100% to all shares of Class A common stock, pro rata, until
they have received any unpaid arrearages in the $0.50 per share base
dividend for prior quarters;
-- third, 100% to all subordinated shares, pro rata, until they have
received $0.50 per share; and
-- after that, 100% to all Class A common and subordinated shares, pro
rata, as if they were a single class.
The subordination period commenced upon the issuance of the Class B common
shares, which occurred on March 16, 2006. Each of the subordinated shares
will convert into a Class A common share after the end of the subordination
period, which extends at least up to the first day after the quarter ending
December 31, 2008 provided each of the following tests are met:
(1) we have paid quarterly dividends in an amount at least equal to $0.50
per share on both our Class A and Class B common shares for the immediately
preceding four-quarter period;
(2) the operating surplus generated during the four-quarter period
referred to above at least equaled the base dividend on all of the
outstanding Class A and Class B common shares on a fully diluted basis
during that period; and
(3) there are no arrearages in payment of the quarterly dividend on the
Class A common stock.
The Company's ability to pay any dividends is subject to a number of
factors beyond its control, including its satisfaction of certain financial
covenants contained in its credit agreements. The Company cannot guarantee
that it will continue to pay dividends to its shareholders.
George Kassiotis, President and Chief Executive Officer of Omega
Navigation, commented: "We are very pleased to reiterate our dividend
policy. We have now paid the same $0.50 per share dividend for every
quarter since we have become public. Furthermore, public shareholders
dividends are further supported and protected by our subordination policy.
At the same time by keeping cash reserves and being a partial payout
company we are also enhancing our ability to proceed with our growth
strategy."
About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of global
marine transportation services through the ownership and operation of eight
double hull product tankers. The current fleet includes eight double hull
product tankers with a carrying capacity of 512,358 dwt. These eight
product tankers are chartered out under three-year period time charters.
Furthermore, the company recently announced the signing of shipbuilding
contracts to construct and acquire five newbuilding double hull Handymax
product tankers each with a capacity of 37,000 dwt scheduled for delivery
between March 2010 and early in 2011. With the addition of these five
vessels, the Omega fleet will expand to 13 product tankers with a total
deadweight capacity of 697,358 tons.
The Company was incorporated in the Marshall Islands in February 2005. Its
principal executive offices are located in Piraeus, Greece and it also
maintains an office in the United States.
Omega Navigation's Class A common shares are traded on the NASDAQ National
Market under the symbol "ONAV" and are also listed on the Singapore
Exchange Securities Trading Limited under the symbol "ONAV 50."
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of
historical facts.
The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "except," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "will," "may," "should," "expect" pending
and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, the Company's management's examination of
historical operating trends, data contained in the Company's records and
other data available from third parties. Although the Company believes that
these assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Company's control,
the Company cannot assure you that the Company will achieve or accomplish
these expectations, beliefs or projections.
In addition to these important factors other important factors that, in the
Company's view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand for product tanker
and dry bulk shipping capacity, changes in the Company's operating
expenses, including bunker prices, drydocking and insurance costs, the
market for the Company's vessels, availability of financing and
refinancing, changes in governmental rules and regulations or actions taken
by regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political
events, vessels breakdowns and instances of off-hires and other factors.
Please see the Company's filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks and
uncertainties.
Contact Information: Contacts: Company Contact: Gregory A. McGrath Chief Financial Officer Omega Navigation Enterprises, Inc. PO Box 272 Convent Station, NJ 07961 Tel. (551) 580-0532 E-mail: gmcgrath@omeganavigation.com www.omeganavigation.com Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: nbornozis@capitallink.com www.capitallink.com