Deutsche Bank likes the merger between Star Bulk Carriers (SBLK) and Eagle Bulk Shipping (EGLE). The deal brings greater operational leverage to a potentially better market while there is no change to financial leverage on a pro-forma basis, the analyst tells investors in a research note. The firm says the increased market cap and enhanced trading liquidity could attract new investors “that were frozen out of these types of names before.” Further, there will be no change to Star Bulk’s “solid” dividend strategy of paying out excess cash above a certain minimum liquidity requirement based on $2.1M per ship in the fleet, adds Deutsche Bank.
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