Navios Maritime Holdings Inc. Announces New $649 Million Global Loan Facility with HSH Nordbank
22 Diciembre 2005 - 7:00AM
PR Newswire (US)
New Facility Reduces Average Interest Rate and Amortization of
Loan; Extends Average Term; Provides Favorable Loan Covenants
PIRAEUS, Greece, Dec. 22 /PRNewswire-FirstCall/ -- Navios Maritime
Holdings Inc ("Navios") (NASDAQ:BULKNASDAQ:BULKUNASDAQ:BULKW), a
leading, vertically integrated global shipping company specializing
in the dry-bulk shipping industry, today announced that it has
entered into a new Global Loan Facility (the "New Facility") with
HSH Nordbank for $649 million. The New Facility provides financing
for six vessels being acquired through the exercise of purchase
options as well as the acquisition of four other vessels as
announced today and discussed below. The New Facility also
refinances the existing loan facility with HSH Nordbank. Ms
Angeliki Frangou, the Chairman and CEO of Navios commented, "The
New Facility with HSH Nordbank allows us flexibility to pursue our
long-term growth strategy. The reduced amortization and lower
average interest rate will free up financial resources to permit
Navios to take advantage of accretive opportunities." The New
Facility has several significant benefits to Navios, including: *
Reduced interest cost: The average spread over LIBOR for the New
Facility has been reduced to 1.92% from 2.15%, and the interest
spread for the vessel financing tranches is 1.50%. * Reduced
amortization: An aggregate of $96.2 million of principal payments
under the New Facility would be deferred during the period 2006
through 2010 as compared to the old facility. Of this deferral,
approximately 80% would originally have been due in 2006 and 2007.
* Increased term:. The New Facility has an average term of 8.6
years as compared to the old facility which had an average term of
5.6 years. * Extended repayment profile: The annual amortization
for the portion of the New Facility secured by the vessels is based
on a repayment profile of 15.2 years. This compares favorably
against the old facility under which 83% of the amount outstanding
was repaid over the first five years of the loan. Ms Frangou
continued, "The New Facility provides Navios with a strong capital
base and enhances the flexibility of Navios's balance sheet. The
New Facility underscores the strength of Navios's commercial
alliance with HSH Nordbank." Purchase of Vessels Navios today also
announced that it had purchased four Panamax dry-bulk carriers from
Maritime Enterprises Management S.A., a company affiliated with the
Frangou family. Three of these vessels are being delivered to the
Navios Fleet before the end of 2005 while the fourth vessel will be
delivered in January 2006. The specification for each vessel, and
the charter rate for such vessel's time charter employment, are as
follows: Vessel DWT Class Yard Year Charter Estimated Built Rate
Redelivery Date Alegria 74,466 Panamax Tsuneishi, 2004 $25,000
October 2006 Japan Libra II 70,135 Panamax Daewoo, 1995 $25,500
March 2006 Korea Gemini S 68,636 Panamax Sasebo, 1994 $20,000
August 2006 Japan Felicity 73,867 Panamax Sumitomo, 1997 $9,625
June 2007 Japan The purchase price for these four vessels was
$125.5 million. The purchase price was funded as follows: * $13.0
million was funded from cash on Navios's balance sheet * $80.3
million was funded through a drawdown on the new Global Loan
Facility * $32.2 million was funded by the issuance of
approximately 5.5 million shares of Navios valued at $5.85 per
share, subject to a one-year lock up value Mr. Michael McClure,
Navios's Chief Financial Officer stated, "This transaction provided
us with a number of critical benefits. First, it assisted in
obtaining the global loan facility on favorable terms by providing
a larger physical asset base against which the bank could lend. In
addition, as some of the purchase price was paid in the form of
Navios shares, the acquisition provided additional equity on the
balance sheet. Perhaps most importantly, the acquisition is
expected to be accretive to Navios's financial performance as
measured by both cash flow and net income." Ms. Angeliki Frangou
stated, "The acquisition will allow Navios to employ familiar
vessels of a type and age that are consistent with Navios's fleet
profile. Maritime's willingness to accept Navios stock as part of
the purchase price for the vessels reflects its faith in the dry
bulk industry generally and Navios specifically. Maritime's belief
is particularly demonstrated by its acceptance of unregistered
shares, subject to a one-year lock-up, at an approximately 19.9 %
premium to Navios's closing price on December 21, 2005." In light
of the nature of the transaction, the Company's disinterested
directors approved the acquisition and received independent
valuations of the vessels from several ship brokers and a fairness
opinion from an investment banking firm. Fleet Update As previously
announced, Navios has also exercised purchase options for six of
the vessels it has been operating under long term time charters. Of
these six vessels, Navios has already taken delivery of one, a
second is being delivered this week and the remaining four will be
delivered during the first four months of 2006. Following the
acquisition of the four panamaxes and delivery of the six vessels
through the option exercises, Navios's fleet will consist of 33
vessels, of which 16 will be owned and the remaining 17 will be on
long term charters at rates substantially below the current spot
rate. Of the 17 vessels on long term charters, nine are currently
in operation, eight will be delivered within the next three years
and nine have purchase options. Based on these acquisitions, the
Company anticipates that its fixed employment coverage for 2006
will be approximately 62%. The expected time charter equivalent
rate of the vessels with fixed employment will average
approximately $18,000 net per day. About Navios Maritime Holdings
Inc. Navios Maritime Holdings, Inc. is one of the leading global
brands in seaborne dry bulk shipping and is a trusted partner for
industrial end users, shipowners, financial business partners,
agents and brokers. Navios is committed to providing best-in-class
service to both customers and business partners. Navios maintains
offices in Piraeus, Greece; South Norwalk, Connecticut; and
Montevideo, Uruguay. Navios's stock is listed on the NASDAQ where
it trades under the symbols "BULK," "BULKU," and "BULKW." Risks and
uncertainties are described in reports filed by Navios Maritime
Holdings Inc. with the United States Securities and Exchange
Commission. Safe Harbor This press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 about Navios Maritime
Holdings Inc. (Navios). Forward looking statements are statements
that are not historical facts. Such forward-looking statements,
based upon the current beliefs and expectations of Navios's
management, are subject to risks and uncertainties, which could
cause actual results to differ from the forward looking statements.
The information set forth herein should be read in light of such
risks. Navios does not assume any obligation to update the
information contained in this press release. Public & Investor
Relations Contact: Navios Maritime Holdings Inc. Investor Relations
212-279-8820 DATASOURCE: Navios Maritime Holdings Inc. CONTACT:
Investor Relations of Navios Maritime Holdings Inc.,
+1-212-279-8820,
Copyright
Navios Maritime (NASDAQ:BULKU)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Navios Maritime (NASDAQ:BULKU)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024