Navios Maritime Partners L.P. (Navios Partners) (NYSE: NMM), an international owner and operator of dry cargo vessels, announced today the following transactions:

Navios Maritime Partners L.P. Agrees to Acquire Eleven Vessels and Liquidate Navios Europe I
Caption: Containership Protostar N - Image courtesy of Ya Ray Yang

Liquidation of Navios Europe Inc. (Navios Europe I)

As of September 30, 2019, Navios Partners had a receivable of $48.2 million from Navios Europe I. On November 22, 2019, an agreement was reached to liquidate Navios Europe I. The agreement is subject to definitive documentation which is expected to be completed by the end of 2019.

It is expected that Navios Partners will acquire the five containerships owned by Navios Europe I with a net equity value approximately equal to the receivable.

Vessels Type Built TEU Charter Rate,
net ($)
Expiration Date
Esperanza N Sub-Panamax 2008 2,007 8,075 03/2020
Protostar N Sub-Panamax 2007 2,741 9,085 12/2019
Harmony N Sub-Panamax 2006 2,824 9,875 04/2020
Castor N Panamax 2007 3,091 11,702 06/2020
Solar N Panamax 2006 3,398 11,400 06/2020
Total: 5 vessels     14,061    

Acquisition of four vessels

Navios Partners entered into a share purchase agreement for the acquisition of the following four drybulk vessels from an entity affiliated with its Chairman and CEO for $37.0 million in a transaction approved by the Conflicts Committee of the Board of Directors of Navios Partners.

Vessel Built Yard DWT Purchase price ($)
TBN1 2009 Hudong Zhonghua Shipbuilding Co.Ltd.-China 75,162 10,700,000
TBN2 2009 Tsuneishi Group (Zhoushan) Shipbuilding Inc.- China 58,73 10,000,000
TBN3 2004 Sanoyas Hishino Meisho Corp. – Japan 75,798 8,500,000
TBN4 2005 Hudong Zhonghua Shipbuilding Co.Ltd.- China 74,759 7,800,000

The vessels are expected to be delivered in Navios Partners’ owned fleet by December 2019.

The vessels are financed with a $37.0 million loan from a financial institution with an amortization profile of ten years, annual interest of LIBOR plus 475 bps, and maturity in 2022. The loan facility has no capital repayment until September 2020 and may be prepaid at any time without penalty. 

Agreements for two Bareboat Charter-in Vessels

Navios Partners agreed to bareboat charter-in two newbuilding Kamsarmax vessels, one subject to completion of documentation.  Each vessel has approximately 81,000 dwt and is being bareboat chartered-in for ten years. Navios Partners has the option to acquire the vessels after the end of the fourth year for the remaining period of the bareboat charter.  Assuming exercise of the option at the end of the ten-year period, the implied fixed interest rate is 4.5%.

The vessels are expected to be delivered in each of the second and the third quarter of 2021.

Source: Navios