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Navios Maritime Holdings Announces Sale Of Its 36-Vessel Drybulk Fleet For $784.2M

Navios Maritime Holdings Inc. ("Navios Holdings" or the "Company") (NYSE:NM), announced today a definitive agreement providing for the sale of its 36-vessel drybulk fleet for an aggregate

Benzinga · 07/27/2022 16:13

Navios Maritime Holdings Inc. ("Navios Holdings" or the "Company") (NYSE:NM), announced today a definitive agreement providing for the sale of its 36-vessel drybulk fleet for an aggregate consideration of approximately $835.0 million consisting of cash and the assumption of bank debt and finance leases related to the vessels and subject to working capital adjustment at closing, to Navios Maritime Partners L.P. ("Navios Partners") (NYSE:NMM).
 

The aggregate transaction consideration is expected to reduce Navios Holdings' liabilities by approximately $784.2 million, comprising of:

Amount (in US$ millions) Description of liability
$441.6 Debt and finance leases(1)
$262.6 Vessel loans(2)
$80.0 11.25% Senior Secured Notes(3)
$784.2

(1)  Assumed by Navios Partners, includes bank debt and finance lease liabilities as well as obligations from bareboat arrangements on a finance lease basis as of June 30, 2022, to be adjusted at the closing of the transaction

(2)  Mandatory repayment of loans associated with the sale of the vessels due to N Shipmanagement Acquisition Corp. and its subsidiaries, an entity affiliated with the Chairwoman and Chief Executive Officer of Navios Holdings

(3)  To be repaid at maturity on August 15, 2022

Any remaining proceeds will be used to cover transaction costs and for general corporate purposes.

Navios Holdings through this transaction believes it:

  • Took advantage of a strong sale and purchase market in dry bulk
  • Strengthened its balance sheet by repaying debt
  • Eliminated all short-term debt maturities
  • Created a solid liquidity position
    • Will record an estimated net book gain of approximately $100 million in the third quarter of 2022