Navios Maritime Partners L.P. Announces Acquisition of Two Newbuilding LNG Dual Fuel 7,700 TEU Containerships and Entry into Charter Agreements
June 22 2022 - 7:30AM
Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an
international owner and operator of dry cargo and tanker vessels,
announced today that it agreed to purchase two liquified natural
gas (LNG) dual fuel 7,700 TEU containerships, for an aggregate
purchase price of $241.2 million.
The vessels have the ability to operate on
either LNG or conventional marine fuels. They are expected to be
delivered into the fleet in the fourth quarter of 2024. The closing
of the transaction is subject to completion of customary
documentation. Navios Partners has been granted a two-month option
for two additional LNG dual fuel 7,700 TEU containerships at the
same terms, delivering in the second quarter of 2025.
Vessel charters
The two containerships, have been chartered-out
for 12 years, at an average net rate of $42,288 per day. The
charter agreement provides for de-escalating payments as
follows:
• Year 1-3 |
: USD 57,213 net per day |
• Year 4-6 |
: USD 52,238 net per day |
• Year 7-8 |
: USD 37,313 net per day |
• Year 9-10 |
: USD 27,363 net per day |
• Year 11-12 |
: USD 24,875 net per day |
The charterer has an option to extend the
charter for an additional two years at a net rate of $24,875 per
day.
In connection with this transaction, the
charterer agreed to amend existing charters on two 6,800 TEU
containerships currently expiring in the fourth quarter of 2023.
Under the amended terms, the charter period will be extended for
seven months at $43,944 net per day. However, if Navios Partners
exercises its existing option to extend the charter term for five
years (at a net rate of $21,083 per day) the charter period will
also be extended for eight- and one-half months at $30,119 net per
day.
About Navios Maritime Partners
L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is an
international owner and operator of dry cargo and tanker vessels.
For more information, please visit the Company’s website:
www.navios-mlp.com.
Forward-Looking Statements
This press release contains and will contain
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 TCE rates and Navios Partners’ expected cash flow
generation, future contracted revenues, future distributions and
its ability to make distributions going forward, Navios Partners’
ability to realize the projected advantages of the NNA Merger,
opportunities to reinvest cash accretively in a fleet renewal
program or otherwise, potential capital gains, its 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 and Navios Partners’ ability to refinance its debt on
attractive terms, or at all. 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.
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 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 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, risks relating
to: global and regional economic and political conditions including
the impact of the COVID-19 pandemic and efforts
throughout the world to contain its spread, including effects on
global economic activity, demand for seaborne transportation of the
products we ship, the ability and willingness of charterers to
fulfill their obligations to us and prevailing charter rates, the
economic condition of the markets in which we operate, shipyards
performing scrubber installations, construction of newbuilding
vessels, drydocking and repairs, changing vessel crews and
availability of financing; potential disruption of shipping routes
due to accidents, diseases, pandemics, political events, piracy or
acts by terrorists; 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 and liquid cargo shipping
sectors in general and the demand for our dry bulk, containerships
and tanker vessels in particular, fluctuations in charter rates for
dry bulk vessels, containerships and tanker 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, 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.
Contacts
Navios Maritime Partners L.P. +1 (212) 906 8645
Investors@navios-mlp.com
Nicolas BornozisCapital Link, Inc.+1 (212) 661
7566naviospartners@capitallink.com
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