Navios Maritime Partners L.P. announces dry bulk fleet acquisition
Published by Jessica Casey,
Editor
Dry Bulk,
Navios Maritime Partners L.P., an international owner and operator of dry cargo and tanker vessels, agreed to acquire a 36-vessel dry bulk fleet for a gross purchase price of US$835 million, including the assumption of US$441.6 million of bank liabilities, bareboat obligations and finance leasing obligations, subject to debt and working capital adjustments (the transaction), from Navios Maritime Holdings Inc.
The 36-vessel dry bulk fleet consists of 26 owned vessels and 10 chartered-in vessels (all with purchase options) with a total capacity of 3.9 million DWT and an average age of 9.6 years. Assuming Clarksons’ 1-YR TC rate (as of 22 July 2022) and certain operating cost assumptions, the acquired vessels are expected to generate approximately US$164 million of estimated EBITDA and US$81.5 million of estimated free cash in 2023.
This acquisition builds upon Navios Partners’ strength in diversification and provides Navios Partners with:
- A young, known, en-bloc fleet of 36 vessels at an opportune time in the dry bulk market.
- Increased scale: post transaction, the dry bulk and total fleet will increase by 67% and 24%, respectively. NMM will have the third largest dry bulk fleet, and the second largest fleet, of US publicly traded companies (based on number of vessels).
- Rebalanced segment exposure.
- A migration path to a younger, more carbon efficient fleet supported by opportunistically selling older, less carbon efficient vessels.
- Compelling financial returns (based upon the aforementioned 2023 financial estimates).
- US$835 million gross purchase price.
- US$393.4 million estimated equity.
- EBITDA multiple: 5.1x (purchase price/estimated EBITDA).
- Unlevered yield: 20% (estimated EBITDA/gross purchase price).
- Free cash return on equity: 21% (estimated free cash/estimated equity).
Following the completion of the transaction, Navios Partners will own and operate a fleet comprised of 90 dry bulk vessels, 49 containerships and 49 tanker vessels, including 22 newbuilding vessels to be delivered through 1Q25.
Read the article online at: https://www.drybulkmagazine.com/shipping/29072022/navios-maritime-partners-lp-announces-dry-bulk-fleet-acquisition/
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