Pelagic Credit (PLGC) Pareto Securities’ 33rd Annual Energy Conference presentation summary

Business overview

• Yield-oriented maritime credit platform offering leasing and secured financing solutions for shipowners, with a sector-agnostic approach and strong downside protections.

• Listed on Euronext Growth Oslo in March 2026, raising $75m, and headquartered in Limassol, Cyprus.

• Portfolio consists of nine vessels across four transactions, each with approximately five-year contracts, generating stable and predictable cash flows.

• High cash flow visibility supports a quarterly dividend policy, with the first dividend of $0.04/share declared in August 2026.

• Sponsored by Pelagic Partners and backed by institutional investors, including Hartmann Group and major financial institutions.

Financial performance and portfolio

• $61m capital committed to date, with a lease-adjusted revenue backlog of $101m and a project-level dividend yield of 14%.

• Closed deals include multipurpose vessels, a support vessel, chemical tanker newbuildings, and handysize bulk carriers, all with strong contractual security and long-term charters.

• Portfolio IRR ranges from 14% base case to 17-18% with early purchase option exercises.

• Further $76m in actionable deployment backlog from the execution pipeline, with potential lease-adjusted revenue backlog of $307.6m.

• Conservative leverage and attachment points limit downside risk, with exposure below all-time median vessel values throughout transaction terms.

Investment strategy and underwriting

• Focus on reliable asset-backed financing, providing leasing and secured credit for newbuild and second-hand vessels, especially for clients underserved by traditional banks.

• Diversified exposure across shipping and offshore segments, selected based on relative value through the cycle.

• Typical transaction structure involves sale-and-leaseback with robust legal structures, cash management, and enforceability.

• Structuring flexibility includes payment deferral options, PIK interest, and profit sharing.

• Underwriting approach emphasizes conservative leverage, strong collateral, and downside protection.