Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Q3 2023 Earnings Call Transcript

Mads Petersen: Yes. And Poe, if I can just add, everything we do in this space is short term at the moment. We still see best value in the shorter executions on any time challenge business we do. So it’s not something that will last into several more quarters. So…

Poe Fratt: And then you talked about financing, Gianni. Can you just — am I correct in looking at the Trident, it has about $4.6 million of obligation on your purchase option, so you’re going to have sort of — what’s the — so what’s the net proceeds going to be on that?

Gianni Signore: We’re expecting $5 million, about $5 million of cash derived out of that transaction. And you’re right. So we have the purchase option on — it’s called the purchase option, but we view it as a financing. So it’s really the — we’ll call it the balloon payment that’s due on the lease and we’re in the process of closing that out actually now, and we’ll be ready to sell her within the end of November, early December should be sold, and that will generate about $5 million.

Poe Fratt: And then you have, what, a little over $20 million due in the second quarter and the May time frame. You also have the friendship lease that looks like matures in the third quarter, September-ish. Would that also be a refinancing? Or is that potentially a sale candidate?

Gianni Signore: We have the prudence that’s also — we bought — remember, we bought her with no debt attached. So we have heard debt-free and then in that May facility, we have the bulk endurance that’s going to be coming due. So I think the way we look at it now is it’d probably be likely the endurance and the prudence would be our candidates and do some sort of package for those 2 vessels and keep the others debt-free. Just so we can be a bit to your point and what Mark said earlier, we want to be opportunistic with our vessels and if it’s a sale candidate in the market is there, then we want to be in that position. So yes. So I think you’re absolutely right, Poe. And how you’re thinking about that and how we’re thinking that as that approaches maturity.

Operator: That does conclude today’s question and answer session. I will turn the call back over to Mark Filanowski for any additional or closing remarks.

Mark Filanowski: Thank you for joining us today. Have a great day and a happy holiday at — for Thanksgiving.

Operator: This does conclude today’s program. Thank you for your participation. You may disconnect at any time.