NAVIOS MARITIME HOLDINGS INC.
UNAUDITED CONDENSED NOTES TO THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. dollars except share data)
As of June 30, 2019, the outstanding amount relating to Navios Holdings portion
under the Navios Revolving Loans I is $23,125 (December 31, 2018: $19,125), under the caption Loan receivable from affiliate companies. During 2019, Navios Holdings funded with $4,000 Navios Europe I under the Navios Revolving Loans I.
As of June 30, 2019, the amount undrawn under the Revolving Loans I was $2,000, of which Navios Holdings may be required to fund an amount ranging from $0 to $2,000.
On March 17, 2017, Navios Holdings transferred to Navios Partners its rights to the Navios Revolving Loans I and the Navios Term
Loans I (including the respective accrued receivable interest), with a total carrying value of $21,384 for a total consideration of $33,473, comprised of $4,050 in cash and 13,076,923 (before reverse stock split) newly issued common units of
Navios Partners with a fair value of $29,423 (based on Navios Partners trading price as of the closing of the transaction). The Company evaluated this transaction in accordance with ASC 860, classifying it as a secured borrowing
arrangement. At the date of this transaction, the Company recognized a long-term liability of $33,473, including a premium of $12,089 which will be amortized through Interest expense and finance cost, net over the term of the loans until
2023, and is included within Long-term payable to affiliate companies. Navios Holdings may be required from Navios Partners, under certain conditions, to repurchase the loans after the third anniversary of the date of the transaction
based on the then-outstanding balance of the loans. See also Note 13. As of June 30, 2019 and December 31, 2018, the long-term payable to Navios Partners amounted to $36,205 and $35,417, respectively, including the unamortized premium
of $7,392 and $8,359, respectively.
Balance due from Navios Europe II: Balance due from Navios Europe II as of June 30, 2019,
amounted to $15,057 (December 31, 2018: $5,312), which included the net current receivable amount of $11,917 (December 31, 2018: $470 net current payable), mainly consisting of management fees, drydocking, ballast water treatment system
and other expenses and accrued interest income earned under the Navios Revolving Loans II (as defined in Note 13) and other expenses and the net non-current amount receivable of $3,140 (December 31, 2018:
$5,782) related to the accrued interest income earned under the Navios Term Loans II (as defined in Note 13).
The Navios Revolving Loans
II and the Navios Term Loans II earn interest and an annual preferred return, respectively, at 1,800 basis points per annum, on a quarterly compounding basis and are repaid from free cash flow (as defined in the loan agreement) to the fullest extent
possible at the end of each quarter. There are no covenant requirements or stated maturity dates.
As of June 30, 2019, the
outstanding amount relating to Navios Holdings portion under the Navios Revolving Loans II was $16,938 (December 31, 2018: $16,938), under the caption Loan receivable from affiliate companies. As of June 30, 2019, the amount
undrawn from the Navios Revolving Loans II was $4,503, of which Navios Holdings may be required to fund an amount ranging from $0 to $4,503.
Secured credit facility with Navios Logistics: On April 25, 2019, Navios Holdings entered into a secured credit facility of
$50,000 with Navios Logistics to be used for general corporate purposes, including the repurchase of 2022 Notes. The credit facility is available in multiple drawings, has an arrangement fee of $500, a fixed interest rate of 12.75% for the first
year and a fixed interest rate of 14.75% for the second year, payable annually. The secured credit facility includes negative covenants substantially similar to the 2022 Notes and customary events of default. The credit facility matures in April
2021. As of September 12, 2019, $50,000 was drawn under this facility of which $18,726 was used to acquire the 2022 Notes from Navios Logistics and the remaining amount was used to repurchase 2022 Notes.
NOTE 9: PREFERRED AND COMMON STOCK
Vested,
Surrendered and Forfeited
During the three and six month period ended June 30, 2018, 0 and 333 restricted stock units issued to
the Companys employees in 2016, respectively, vested.
During the three and six month period ended June 30, 2019, 59 restricted
shares of common stock, were forfeited upon termination of employment.
During the three and six month period ended June 30, 2018,
150 and 300 restricted shares of common stock, respectively, were forfeited upon termination of employment.
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