Navios Maritime Partners L.P. Agrees to Acquire 14-Vessel Container Fleet from Rickmers Maritime
April 20 2017 - 3:01PM
Navios Maritime Partners L.P. (“Navios Partners”) (NYSE:NMM)
an international owner and operator of drybulk and container
vessels, announced today that it has agreed to acquire the entire
container fleet (the “Fleet”) of Rickmers Maritime (the “Trust”)
for about $113.0 million.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “We are pleased to announce the
agreement for the acquisition of 14 container vessels from Rickmers
Maritime. We anticipate acquiring five 4,250 TEU vessels on
May 15, 2017. These vessels are employed on charters that
have staggered expirations in 2018 and early 2019 at a net daily
charter rate of $26,850.”
Ms. Frangou continued, “Our operating platform
was attractive to the Trust and its lending banks because of our
disciplined technical and commercial management and favorable
operating costs. This acquisition demonstrates our ability to
source proprietary deals, and we are continuing to seek exposure to
the container sector.”
The acquisition is being financed through a $20
million equity investment by Navios Partners and a secured loan
facility under discussion. The vessels are expected to be delivered
starting May 15, 2017. The acquisition is subject to a number
of conditions, and no assurance can be provided that the
acquisition will close in all or part.
Navios Partners will acquire these vessels
though a wholly owned subsidiary, Navios Partners Containers Inc.,
which will be an “unrestricted subsidiary” as defined in the Credit
Agreement, dated March 14, 2017, for our Term Loan B
facility. In addition, a third party has an option to acquire
up to 25% of the equity in Navios Partners Containers Inc., based
on allocated cost.
The Fleet consists of 14 container vessels, 11
of which are 4,250 TEU vessels and three of which are 3,450 TEU
vessels. The average age of the Fleet is 9.5 years. Five of the
4,250 TEU vessels are employed on charters that have staggered
expirations in 2018 and early 2019 at a net daily charter rate of
$26,850.
Fleet Exhibit
Name |
TEU |
|
Yard |
|
Built |
|
Initial Fleet
Acquisition |
|
|
|
|
|
|
MOL Dominance |
4,250 |
|
Dalian, China |
|
2008 |
|
MOL Dedication |
4,250 |
|
Dalian, China |
|
2008 |
|
MOL Delight |
4,250 |
|
Dalian, China |
|
2008 |
|
MOL Destiny |
4,250 |
|
Dalian, China |
|
2009 |
|
MOL Devotion |
4,250 |
|
Dalian, China |
|
2009 |
|
Subsequent
Fleet |
|
|
|
|
|
|
Vicki Rickmers |
4,250 |
|
Dalian, China |
|
2007 |
|
Maja Rickmers |
4,250 |
|
Dalian, China |
|
2007 |
|
CMA CGM Azure |
4,250 |
|
Dalian, China |
|
2007 |
|
Laranna Rickmers |
4,250 |
|
Dalian, China |
|
2007 |
|
Sabine Rickmers |
4,250 |
|
Dalian, China |
|
2007 |
|
Erwin Rickmers |
4,250 |
|
Dalian, China |
|
2007 |
|
Henry Rickmers |
3,450 |
|
Hyundai, SK |
|
2006 |
|
Richard Rickmers |
3,450 |
|
Hyundai, SK |
|
2006 |
|
Moni Rickmers |
3,450 |
|
Hyundai, SK |
|
2007 |
|
Total |
57,100 |
|
|
|
|
|
|
|
|
|
|
|
|
About Navios Maritime Partners
L.P.
Navios Partners (NYSE:NMM) is a publicly traded
master limited partnership which owns and operates container and
dry bulk vessels. For more information, please visit our website at
www.navios-mlp.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 including the closing of
the acquisition of the Fleet, Navios Partners’ 2017 cash flow
generation, future contracted revenues, future distributions and
its ability to have a dividend going forward, opportunities to
reinvest cash accretively in a fleet renewal program or otherwise,
the benefits of the acquisition of the Fleet, potential capital
gains, our 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. 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 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 known and unknown risks and are based upon a
number of assumptions and estimates which 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 the quality of the Fleet and the market for the
Fleet vessels, the ability to integrate the Fleet, but are not
limited to, 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 cargo shipping sector in general and the
demand for our Panamax, Capesize, Ultra- Handymax and Container
vessels in particular, fluctuations in charter rates for dry cargo
carriers and container 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 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, 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.
Contact
Public & Investor Relations Contact:
Navios Maritime Partners L.P.
+1.212.906.8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1.212.661.7566
naviospartners@capitallink.com
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