MRMP Crosses 5% Threshold; Files 13D; Sends Letter to Navios Maritime Partners L.P.
July 22 2021 - 12:26PM
Business Wire
MRMP-Managers LLC ("MRMP"), announced today that it has
transmitted a letter to Navios Maritime Partners L.P. (the
"Company") (NYSE: NMM) sharing urgent and serious concerns
regarding the current management and direction of the Company.
Ned Sherwood of MRMP commented, “Our group has had over thirty
years of success investing in various companies that are operated
by experienced multi-generation families. Angeliki Frangou is a
member of a shipping family that spans generations. We are
confident in her ability to manage NMM’s fleet of approximately 95
dry bulk and containerships. However, we have been confused by some
of her recent financial decisions – decisions which seem imprudent
and illogical – that run counter to sound business principles.
While we are only holders of LP interests in NMM, we have
serious concerns regarding Angeliki’s decisions that seem designed
to benefit other entities in the Navios group. We believe these
decisions run counter to her duty as Chairman & CEO of NMM.
Therefore, we suggest in our letter that Angeliki and the GP
implement the following policies that will benefit the unit holders
of NMM and assure that we are not treated as second class holders.
Set forth below is a summary of the points raised in our
letter:
- NMM cease all ATM LP equity issuance at values less than 85% of
a reasonable estimate of fleet value. In fact, NMM should begin LP
share buybacks in order to take advantage of the current discounted
price.
- If NMM continues to trade at approximately 50% or less of
market value, the GP should endeavor to sell ships from their fleet
to realize proceeds closer to the 100% of market value and pay down
debt, buyback LP interests or distribute proceeds to LP
holders.
- In our opinion, the current debt level at NMM is reasonable (if
not below the norm) versus comparable companies, therefore, NMM’s
GP and management should set a distribution percentage of no less
than 75% of estimated annual free cash flow. MLP’s are supposed to
distribute the bulk of their free cash flow to LP holders, and
Angeliki Frangou’s erratic policies and reluctance to distribute
cash lead to uncertainty and discounted equity valuations.
- Given the curious behavior and policies of Angeliki Frangou as
GP, we believe an independent investigation should be undertaken to
determine whether the GP’s actions are in any way due to conflicts
of interest with other related entities. The investigation also
should review ship management contracts and compare rates against
other ship management entities.
We hope that Angeliki Frangou takes our suggestions seriously
and follows them, as we are certain that most shareholders would
welcome fair and equitable treatment that benefits NMM only and not
its affiliates.”
As required by applicable Securities and Exchange Commission
rules, Ned Sherwood, MRMP and others filed a Schedule 13D report,
disclosing their aggregate 5.8% ownership stake in the LP interests
of NMM.
Cautionary Statement Regarding Forward-Looking
Statements
This press release and MRMP’s letter to NMM (attached as an
exhibit to the Schedule 13D filed today) contain forward-looking
statements. All statements that are not clearly historical in
nature or that necessarily depend on future events are
forward-looking, and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended
to identify forward-looking statements. These statements are based
on the current expectations of MRMP and its affiliates and
currently available information. They are not guarantees of future
performance, involve certain risks and uncertainties that are
difficult to predict, and are based upon assumptions as to future
events that may not prove to be accurate. Accordingly, readers
should not place undue reliance on forward looking information.
MRMP and its affiliates do not assume any obligation to update any
forward-looking statements contained in this press release, except
as required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210722005782/en/
Ned L. Sherwood (772) 257-6658 nsherwood@zsfundlp.com
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Navios Maritime Partners (NYSE:NMM)
Historical Stock Chart
From Apr 2023 to Apr 2024