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Navios Maritime Partners L.P. Agrees to Acquire Eleven Vessels and Liquidate Navios Europe I

MONACO, Nov. 25, 2019 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. (“Navios Partners”, “Company”) (NMM), an international owner and operator of dry cargo vessels, announced today the following transactions:

Liquidation of Navios Europe Inc. (“Navios Europe I”)

As of September 30, 2019, Navios Partners had a receivable of $48.2 million from Navios Europe I. On November 22, 2019, an agreement was reached to liquidate Navios Europe I. The agreement is subject to definitive documentation which is expected to be completed by the end of 2019.

It is expected that Navios Partners will acquire the five containerships owned by Navios Europe I with a net equity value approximately equal to the receivable.

Vessels Type Built TEU Charter Rate,
net ($)
Expected
Expiration Date
Esperanza N Sub-Panamax 2008 2,007 8,075 03/2020
Protostar N Sub-Panamax 2007 2,741 9,085 12/2019
Harmony N Sub-Panamax 2006 2,824 9,875 04/2020
Castor N Panamax 2007 3,091 11,702 06/2020
Solar N Panamax 2006 3,398 11,400 06/2020
Total: 5 vessels     14,061    

Acquisition of four vessels

Navios Partners entered into a share purchase agreement for the acquisition of the following four drybulk vessels from an entity affiliated with its Chairman and CEO for $37.0 million in a transaction approved by the Conflicts Committee of the Board of Directors of Navios Partners.

Vessel Built Yard DWT Purchase price ($)
TBN 1 2009 Hudong Zhonghua Shipbuilding Co.Ltd.-
China
75,162 10,700,000
TBN 2 2009 Tsuneishi Group (Zhoushan) Shipbuilding Inc.- China 58,735 10,000,000
TBN 3 2004 Sanoyas Hishino Meisho Corp. –
Japan
75,798 8,500,000
TBN 4 2005 Hudong Zhonghua Shipbuilding Co.Ltd.-
China
74,759 7,800,000

The vessels are expected to be delivered in Navios Partners’ owned fleet by December 2019.

The vessels are financed with a $37.0 million loan from a financial institution with an amortization profile of ten years, annual interest of LIBOR plus 475 bps, and maturity in 2022. The loan facility has no capital repayment until September 2020 and may be prepaid at any time without penalty. 

Agreements for two Bareboat Charter-in Vessels

Navios Partners agreed to bareboat charter-in two newbuilding Kamsarmax vessels, one subject to completion of documentation.  Each vessel has approximately 81,000 dwt and is being bareboat chartered-in for ten years. Navios Partners has the option to acquire the vessels after the end of the fourth year for the remaining period of the bareboat charter.  Assuming exercise of the option at the end of the ten-year period, the implied fixed interest rate is 4.5%.

The vessels are expected to be delivered in each of the second and the third quarter of 2021.

About Navios Maritime Partners L.P.

Navios Maritime Partners L.P. (NMM) is a publicly traded master limited partnership which owns and operates dry cargo 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 Navios Partners’ expected 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, potential capital gains, its 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.

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 risks and are based upon a number of assumptions and estimates that 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, but are not limited to, risks relating 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 Containerships 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, 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.

Contacts

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