Monday, February 6, 2023
spot_img
HomeFinance & EconomyNavios Maritime Holdings Announces $550 Million of Debt Financing

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Navios Maritime Holdings Announces $550 Million of Debt Financing

Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, announced that it entered into agreements providing Navios Holdings with a total of $550 million of debt financing.

The proceeds of this financing together with available cash will be used to repay at maturity all of Navios Holdings’ outstanding 7.375% First Priority Ship Mortgage Notes (“Ship Mortgage Notes”) due January 15, 2022 and redeem $50.0 million of Navios Holdings’ outstanding 11.25% Senior Secured Notes (the “Senior Secured Notes”) due on August 15, 2022 (after which $105.0 million will remain outstanding).

Details are as follows:

1) $287.0 Million – Commercial bank facilities and sale-leaseback agreements
Navios Holdings entered into two commercial bank facilities and four sale leaseback agreements in an aggregate principal amount of $287.0 million. These facilities and agreements are expected to close by the first half of January 2022, substantially simultaneously with the repayment of the Ship Mortgage Notes. They reflect the following terms:

Credit facility 1: (i) two-year term, (ii) 5.8-year amortization profile, and (iii) annual interest of LIBOR plus a margin ranging between 3.25% – 4.5% based on certain conditions.
Credit facility 2: (i) three-year term, (ii) 4.9-year amortization profile, and (iii) annual interest of LIBOR plus a margin ranging between 2.85% – 3.75% based on certain conditions.
Sale and leaseback agreements: (i) seven-year term on average, (ii) 9.4-year amortization profile, and (iii) effective interest rate of approximately 5.3%.
The credit facilities and sale and leaseback agreements will be secured by 18 drybulk vessels (17 of which are now collateral for the Ship Mortgage Notes) plus an additional collateral of seven drybulk vessels that are subject to bareboat charters and sale and leaseback agreements.

2) $262.6 Million – PIK loan facilities
Navios Holdings entered into two PIK loan facilities with an entity affiliated with its Chairwoman and Chief Executive Officer (“Lender”). These facilities provide Navios Holdings with loans in an aggregate principal amount of $262.6 million (the “Loans”).

These Loans provide for advances of $150.0 million of additional liquidity the release by the Lender of approximately $300.0 million of collateral (including approximately $158.9 million of Ship Mortgage Notes), allowing Navios Holdings to grant additional collateral as security for the commercial credit facilities and sale and leaseback agreements an initial 18-month period during which there will be no cash interest or amortization; interest payments during this initial period will be made in the form of a junior debt instrument (“Unsecured Convertible Debentures”) as described below.

Material Loan Features

The material terms of the Loans are:

Annual interest rate:

PIK – in the form of Unsecured Convertible Debentures – 18% until the Senior Secured Notes are repaid in full; 16.5% thereafter
Or cash – 13.5% after the initial 18-month period;
Amortization: $10.0 million quarterly, commencing Q3 of 2023;
Term: four years; 18-month non-call;
Fee: $24.0 million upfront to the Lender (“Fee”) paid in the form of Unsecured Convertible Debentures;
Collateral:
First lien collateral coverage of ~ 20%
First priority partnership interest pledge on 2,112,708 Navios Maritime Partners LP (“NMM”) common units;
Second lien collateral
12,765 shares of Navios South American Logistics Inc.
1,070,491 NMM common units
Membership interests of Navios GP L.L.C.

Unsecured Convertible Debentures:

The Fee and all PIK interest on the Loans will be paid in the form of unsecured convertible debentures. The unsecured convertible debentures (1) have a five-year term, (2) carry PIK interest, at an annual rate of 4% and (3) are convertible, in whole or in part, at any time at the election of the Lender into shares of common stock of the Company at the conversion price formula fixed on December 13, 2021. The holder of the Unsecured Convertible Debentures will be entitled to vote on an “as converted” basis along with the holders of common stock of the Company.

Source: Navios Maritime Holdings

Related Posts

Video

Finance & Economy
Shipping News
Ports

LNG boosts CPLP 2022 results

Capital Product Partners L.P. released its financial results for the fourth quarter ended December 31, 2022. Highlights  Three-month periods ended December 31, 20222021Increase/(Decrease)Revenues$79.9 million$63.6 million26%Expenses$42.1 million$35.7...

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...