Navios Maritime Partners L.P., an international owner and operator of dry cargo vessels, and Navios Maritime Acquisition Corp., an international owner and operator of tanker vessels, has announced a definitive transaction agreement providing for a combination of Navios Partners and Navios Acquisition in a transaction in which shareholders of Navios Acquisition will receive 0.1275 of a common unit of Navios Partners for each outstanding common share of Navios Acquisition. All of Navios Acquisition’s outstanding 8.125% First Priority Ship Mortgage Notes, due on 15 November 2021, will be redeemed in accordance with their terms with the proceeds of a cash contribution from Navios Partners and newly arranged secured term loan financings.
Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “We are announcing a transformative transaction. The combined entity will be the largest US publicly-listed shipping company in terms of vessel count, with 15 vessel types diversified across three segments, servicing more than 10 end markets. About one-third of our fleet will be in each of the dry bulk, containership, and tanker segment. We believe that this combination will result in a stronger, more resilient entity, mitigating sector specific cyclicality. This should enable us to capitalise on opportunities throughout the industry and provide even returns to our stakeholders across cycles.
This combination of two companies with similar core values and beliefs, as it relates to our service offerings, will allow us to continue to deliver the high-quality service that our customers expect. We have a proven model to execute seamless combinations, as evidenced by our prior successful roll-up transactions, and we anticipate a smooth execution for this combination as well.”
The current value of the combined company’s vessels is estimated at US$4.2 billion based upon the average of publicly available broker reports; the combined company will also have an enterprise value of approximately US$2.25 billion. With a US$1.6 billion pipeline of contracted revenue coupled with approximately 47 634 available days in 2022, the combined fleet is well-positioned to take advantage of the healthy dry cargo markets as well as any future upturn in the tanker market.
The merger is expected to close in 4Q21.
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/31082021/navios-maritime-partners-and-navios-maritime-acquisition-corporation-announce-merger/