Navios Maritime Partners L.P. Announces the Acquisition of Certain Financial Assets for $27.0 million from Navios Maritime Ho...
February 22 2017 - 8:30AM
Navios Maritime Partners L.P. (“Navios Partners” or the “Company”)
(NYSE:NMM) announced today that it has agreed to acquire from
Navios Maritime Holdings Inc. (“Navios Holdings”) (NYSE:NM) a 47.5%
participation interest that Navios Holdings indirectly owns in
certain loan facilities previously made to Navios Europe Inc. (the
“Transaction”).
The purchase price is $27.0 million, payable in the
form of (1) $4.05 million in cash and (2) approximately 13.1
million common units of NMM. The loans being purchased have
an aggregate balance of $21.4 million as of February 2017, earn
interest at 12.7% annually and mature no later than December 2023
with an estimated nominal value of $51.3 million. Navios
Partners may require Navios Holdings, under certain conditions, to
repurchase the loans after the third anniversary of the date of the
sale based on the then outstanding balance of the loans.
The Conflicts Committee of Navios Partners,
comprised of independent directors, negotiated and approved the
terms of the Transaction with the assistance of the Conflicts
Committee's outside financial and legal advisors. In
approving the Transaction, the Conflicts Committee determined that
the Transaction was fair to Navios Partners and in the best
interest of Navios Partners and its unitholders.
Duff & Phelps, LLC served as financial advisor,
and Gibson, Dunn & Crutcher, LLP, served as legal counsel, to
the Conflicts Committee.
About Navios Maritime Partners
L.P.
Navios Partners (NYSE:NMM) is a publicly traded
master limited partnership which owns and operates container and
dry bulk vessels. For more information, please visit our website
at
www.navios-mlp.com.
Forward-Looking StatementsThis
press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended) concerning
future events including Navios Partners’ 2017 cash flow generation,
future contracted revenues, future distributions and its ability to
have a dividend going forward, opportunities to reinvest cash
accretively in a fleet renewal program or otherwise, potential
capital gains, our ability to take advantage of dislocation in the
market and Navios Partners’ growth strategy and measures to
implement such strategy; including expected vessel acquisitions and
entering into further time charters. Words such as “may”,
“expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”,
“estimates”, and variations of such words and similar expressions
are intended to identify forward-looking statements. Such
statements include comments regarding expected revenue and time
charters.
These forward-looking statements are based on the
information available to, and the expectations and assumptions
deemed reasonable by Navios Partners at the time these statements
were made. Although Navios Partners believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates which are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of Navios Partners. Actual
results may differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to,
uncertainty relating to global trade, including prices of seaborne
commodities and continuing issues related to seaborne volume and
ton miles, our continued ability to enter into long-term time
charters, our ability to maximize the use of our vessels, expected
demand in the dry cargo shipping sector in general and the demand
for our Panamax, Capesize, UltraHandymax and Container vessels in
particular, fluctuations in charter rates for dry cargo carriers
and container vessels, the aging of our fleet and resultant
increases in operations costs, the loss of any customer or charter
or vessel, the financial condition of our customers, changes in the
availability and costs of funding due to conditions in the bank
market, capital markets and other factors, increases in costs and
expenses, including but not limited to: crew wages, insurance,
provisions, port expenses, lube oil, bunkers, repairs, maintenance
and general and administrative expenses, the expected cost of, and
our ability to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business,
general domestic and international political conditions,
competitive factors in the market in which Navios Partners
operates; risks associated with operations outside the United
States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Navios Partners’ expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based. Navios Partners
makes no prediction or statement about the performance of its
common units.
Public & Investor Relations Contact:
Navios Maritime Partners L.P.
+1.212.906.8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1.212.661.7566
naviospartners@capitallink.com
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