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Navios Maritime Partners L.P. announces dry bulk fleet acquisition

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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.

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Dry bulk shipping market