Navios Maritime Midstream Partners L.P. Announces Fleet Renewal and Distribution
March 26 2018 - 8:50AM
Navios Maritime Midstream Partners L.P. (“Navios Midstream”)
(NYSE:NAP), an owner and operator of tanker vessels, reported the
following developments regarding its fleet renewal and distribution
policy.
Fleet Renewal and Backstop
Navios Midstream agreed to acquire the Nave
Galactic a 2009-built VLCC from Navios Maritime Acquisition
Corporation ("Navios Acquisition") (NYSE:NNA) for $44.5 million.
Navios Midstream also agreed to sell the Shinyo Kannika to an
unrelated party for $17.0 million.
Navios Acquisition’s charter rate
backstop has been extended to the Nave Galactic. This charter
rate backstop was previously for the Shinyo Kannika, and under the
backstop Navios Acquisition will pay Navios Midstream any shortfall
between (a) $38,025 per day and (b) the average charter rate for
each calendar year through February 2019.
The acquisition of the Nave Galactic, a
nine-year old vessel, and the sale of the Shinyo Kannika, a 17-year
old vessel, will reduce the average age of the fleet by 10%.
Navios Midstream will continue to refresh its fleet, thereby
seeking to revitalize its cash flow generating ability.
The Nave Galactic will substitute for the Shinyo
Kannika under the Term Loan B.
Board Approval
The acquisition of the Nave Galactic transaction
has been unanimously approved by the Conflicts Committee of the
Board of Directors (“Board”) of Navios Midstream.
Dividend Policy
The Board has reset the annual distribution
policy to $0.50 per unit, after an extensive review of current and
prospective market conditions, fleet profile and financial
position, among other factors. The Board reset the
distribution to enable Navios Midstream to redirect internally
generated cash flow toward renewing the fleet while maintaining a
healthy balance sheet during difficult market conditions. The
Board believes that the announced distribution is in the best
interests of all of its stakeholders, including its unitholders.
The new distribution will be effective for the first quarter of
2018, to unitholders of record on May 9, 2018 and will be payable
on May 11, 2018.
Since going public in the fourth quarter of
2014, Navios Midstream returned capital to unitholders, without
reduction. Any unitholder who purchased common units on the
IPO date would have received a total of $5.25 per unit in
distributions to date.
About Navios Maritime Midstream Partners
L.P.
Navios Maritime Midstream Partners L.P. is a
publicly traded master limited partnership which owns and operates
crude oil tankers under long-term employment contracts. For more
information, please visit our website at
www.navios-midstream.com.
Forward-Looking Statements
This 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 and expectations,
including with respect to Navios Midstream’s future dividends and
Navios Midstream's 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 Midstream at the time these statements were made. Although
Navios Midstream 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 that are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Midstream. 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, the creditworthiness of
our charterers and the ability of our contract counterparties to
fulfill their obligations to us, tanker industry trends, including
charter rates and vessel values and factors affecting vessel supply
and demand, the aging of our vessels and resultant increases in
operation and drydocking costs, the loss of any customer or charter
or vessel, our ability to repay outstanding indebtedness, to obtain
additional financing and to obtain replacement charters for our
vessels, in each case, at commercially acceptable rates or at all,
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, potential liability from litigation and our vessel
operations, including discharge of pollutants, general domestic and
international political conditions, competitive factors in the
market in which Navios Midstream operates; risks associated with
operations outside the United States; and other factors listed
from time to time in Navios Midstream’s filings with the U.S.
Securities and Exchange Commission including its Form 20-Fs and
Form 6-Ks. Navios Midstream 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 Midstream’s expectations with respect thereto or any
change in events, conditions or circumstances on which any
statement is based. Navios Midstream makes no prediction or
statement about the performance of its common units.
Investor Relations Contact
Navios Maritime Midstream Partners L.P. +1 (212) 906 8647
Investors@navios-midstream.com
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