Navios Maritime Partners L.P. announces a merger with Navios Maritime Acquisition Corporation
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, 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, according to the company's release.
All of Navios Acquisition’s outstanding 8.125% First Priority Ship Mortgage Notes, due on November 15, 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.
Benefits of Combination The Transaction is expected to:
• Create the #1 largest 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 10 end markets.
• Scale operations with trades across all sizes with about one-third of its vessels operating in each of the three segments.
• Achieve diversification to mitigate idiosyncratic segment volatility as operational segments are driven by unique fundamentals.
• Optimize strategy allowing management to take advantage of opportunities within each sector, such as by calibrating charter term based upon segment opportunity.
• Realize annual cost reductions.
• Maintain significant financial flexibility with a combined modest leverage ratio of approximately 35%, based upon the average of publicly available broker reports as of August 20, 2021, and a large collateral value base for refinancing debt maturities.
• Enhance credit profile by increasing cash retention to support growth and continued deleveraging.
• Grow equity market capitalization and depth in share trading to offer an attractive fundamental investment opportunity to investors seeking exposure to global economy.
• Maintain and ultimately grow returns to unitholders of the combined company.
• Provide Navios Acquisition’s shareholders the opportunity to continue to participate in the combined company and avail themselves of market upside
The current value of the combined company’s vessels is estimated at $4.2 billion based upon the average of publicly available broker reports; the combined company will also have an enterprise value of approximately $2.25 billion. With a $1.6 billion pipeline of contracted revenue coupled with about 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.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. is a publicly traded master limited partnership which owns and operates dry cargo vessels.
About Navios Maritime Acquisition Corporation
Navios Acquisition is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals.
