Company: CMDB
Filing Date: 2025-04-07
Form Type: 20FR12B/A
Source: 0001140361-25-012461
Chunk: 266

Company: Costamare Bulkers Holdings Ltd
Filing Date: 2025-04-07
Form: 20FR12B/A
Chunk 266
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 interest rates could adversely impact future earnings. From time to time, we take positions in interest rate derivative contracts to manage interest costs and risk associated with changing interest rates with respect to our floating-rate debt. Generally, our approach is to economically hedge our floating-rate debt based on our outlook for interest rates and other factors. Our interest expense is affected by changes in the general level of interest rates, primarily SOFR based rates. As an indication of the extent of our sensitivity to interest rate changes, an increase of 100 basis points in the reference rates would have decreased our net income and cash flows during the fiscal year ended December 31, 2024 by approximately $1.7 million based upon our debt level during such period. As of December 31, 2024, we had outstanding bank loan indebtedness of $339.3 million. The following table sets forth the sensitivity of our outstanding long-term debt, including the effect on our statement of operations of our derivative contracts (if any) to a 100 basis points increase in the aforementioned reference rates during the next five years on the same basis. Net Difference in Earnings and Cash Flows (in millions of U.S. dollars):

| Year |     | Amount |
| 2025 |     |    3.2 |
| 2026 |     |    2.9 |
| 2027 |     |    2.6 |
| 2028 |     |    2.3 |
| 2029 |     |    1.1 |

Derivative Financial Instruments Interest Rates According to our long-term strategic plan to maintain stability in our interest rate exposure, we may decide to minimize our exposure to floating interest rates by entering into interest rate swap/cap agreements. To this effect, we may enter into interest rate swap/cap transactions with varying start and maturity dates, in order to proactively and efficiently manage our floating rate exposure. Furthermore, we may enter into cross currency swap agreements and foreign currency exchange agreements to manage our exposure to fluctuations of foreign currencies risks. ASC 815, “Derivatives and Hedging”, established accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. All derivatives will be recognized in the predecessor combined carve-out financial statements at their fair value. On the inception date of the derivative contract, and an ongoing basis, and after putting in place the formal documentation required by ASC 815 in order to designate these derivatives as hedging instruments, we designate the derivative as a