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Navios Maritime Acquisition Stock Skyrockets On Merger With Navios Maritime Partners

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  • Navios Maritime Partners L.P. (NYSE: NMM) and Navios Maritime Acquisition Corp (NYSE: NNA) have agreed to merge; under the agreement, shareholders of Navios Acquisition will receive 0.1275 of a common unit of Navios Partners for each share.

  • Based on Navios Partners' August 24 closing price, the merger consideration reflects a per-share value of $3.40, representing a premium of 65% to Navios Acquisition August 24 closing price.

  • Navios Acquisition will merge with a subsidiary of Navios Partners and become a wholly-owned subsidiary of Navios Partners.

  • The transaction will create a U.S. publicly-listed shipping company, with over 140 vessels aggregating approximately 15 million deadweight tons operating in three segments through 15 different vessel types and serving more than ten end markets.

  • The current value of the combined company's vessels is estimated at $4.2 billion, and the combined company will also have an enterprise value of ~$2.25 billion.

  • The combined fleet is well-positioned to take advantage of the healthy dry cargo markets and any future upturn in the tanker market. It has a $1.6 billion pipeline of contracted revenue coupled with about 47,634 available days in 2022.

  • The combined company will be led by the existing board of directors of Navios Partners, comprised of seven directors, a majority of whom are independent.

  • Navios Partners provided Navios Acquisition with a $45.0 million interim working capital facility in connection with the transaction.

  • The merger is expected to close in 4Q21.

  • Price Action: NMM shares are trading lower by 6.58% at $23.98, and NNA higher by 38% at $2.90 during the premarket session on Friday.

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