OceanPal Inc. (NASDAQ: SVRN) completed the repurchase of 18,996 shares of its 7.0 % Series D cumulative convertible perpetual preferred stock, paying $1,400 per share plus accrued dividends of $16.33 per share. The tender offer closed at 5:00 p.m. Eastern time on January 8 2026 and was administered through Computershare Trust Company, N.A. The transaction generated approximately $26.9 million in gross proceeds, providing a significant liquidity infusion for the company.
The repurchase comes at a time when OceanPal’s financials have been under pressure. In the fourth quarter of 2024 the company posted a net loss of $8.2 million, a sharp decline from a $58,000 net income in the same quarter of 2023. Despite the loss, the company has maintained a healthy cash balance that has enabled it to fund both the preferred stock buy‑back and a separate $10 million common share repurchase program announced earlier in the year. The cash outflow is therefore a deliberate move to strengthen the balance sheet rather than a sign of liquidity distress.
Strategically, the tender offer reduces OceanPal’s preferred equity obligations and frees up capital that can be deployed toward its expanding technology portfolio. The company has recently raised $120 million in a private investment in public equity (PIPE) to launch SovereignAI, a subsidiary focused on artificial‑intelligence infrastructure and the NEAR Protocol blockchain. By repurchasing preferred shares, OceanPal is positioning itself to allocate more resources to this high‑growth venture while maintaining a solid capital base for its core shipping operations.
The tender offer’s terms—$1,400 per share plus $16.33 in accrued dividends—reflect a premium over the $1,000 liquidation preference of the Series D shares. The purchase price was paid in cash, and the transaction was completed through Computershare Trust Company, N.A., which handled the settlement and transfer of the shares. The offer’s expiration at 5:00 p.m. Eastern on January 8 ensured that all tendered shares were accepted before the deadline, allowing OceanPal to finalize the transaction on January 13.
OceanPal’s fleet consists of dry bulk carriers and product tankers. In 2024 the company sold two Capesize vessels, reducing its fleet size and improving operational efficiency. The company also completed a one‑for‑twenty‑five reverse stock split effective August 25 2025 to enhance the marketability of its shares. These operational moves, combined with the preferred stock buy‑back, signal a concerted effort to streamline the company’s balance sheet and focus on high‑return initiatives.
Investors have historically responded positively to OceanPal’s capital return initiatives. Similar repurchase announcements, such as the December 3 2025 tender offer for Series D preferred stock, have been viewed as a sign of financial stability and a commitment to shareholder value. The recent repurchase continues this trend, reinforcing confidence in the company’s ability to manage its capital structure while pursuing growth opportunities.
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