SOURCE: Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc.

December 18, 2013 09:29 ET

Navios Europe Inc. Closes Transaction With HSH Nordbank AG

PIRAEUS, GREECE--(Marketwired - Dec 18, 2013) -

  • Innovative Financing Structure
  • Ten vessels with FMV of approximately $218 million
  • Strategic Partnership with HSH for further acquisitions

Navios Europe Inc. ("Navios Europe") today announced the closing of the transaction for the acquisition of ten vessels from debtors of HSH Nordbank AG ("HSH").

The ten vessels are five tankers and five container vessels with an average age of 6.0 years and a current fair market value of approximately $218 million. Five vessels have already been delivered to Navios Europe's fleet with the remaining vessels expected to be delivered by the end of 2013. 

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "This innovative financing structure provides relief to distressed assets from bankruptcy and places them into Navios's stable ownership, thereby leveraging our economies of scale and superior technical and commercial management. Navios and HSH are committed to their excellent working relationship and look forward to doing similar deals in near future." 

Fleet Purchase Price
The purchase price consists of $127.8 million in cash and the assumption of $173.4 million Subordinated HSH Participating Loan ("HSH Sub Loan"). The cash payment is funded by $120.4 million senior bank debt and $10 million investment from Navios Maritime Holdings Inc. (NYSE: NM) ("Navios Holdings"), Navios Maritime Acquisition Corporation (NYSE: NNA) ("Navios Acquisition") and Navios Maritime Partners L.P. (NYSE: NMM) ("Navios Partners"). The senior bank debt is secured by a first priority mortgage on the vessels and does not include any holding company guarantees from the Navios public entities.

Navios Holdings, Navios Acquisition and Navios Partners will provide additional working capital ("Navios Working Capital Loans") to Navios Europe on a priority basis. The Navios Working Capital Loans will accrue interest at 12.7%.

The material terms of the transaction were generally in accordance with the letter of intent signed with HSH in April 2013.

Strategic Partnership
HSH has agreed to provide Navios Group the opportunity to acquire more vessels at terms no less favorable than this transaction.

Fleet Exhibit

  Tankers      
  Vessel   Vessel Type   Built   DWT
  Star N   MR1   2009   37,872
  Hector N   MR1   2008   38,402
  Perseus N   MR1   2009   36,264
  Aurora N   LR1   2008   63,495
  Lumen N   LR1   2008   63,599
       
  Containers      
  Vessel   Vessel Type   Built   TEU
  Fesco Almathea   Panamax   2007   3,091
  Protostar N   Sub Panamax   2007   2,741
  Esperanza N   Sub Panamax   2008   2,007
  Harmony N   Sub Panamax   2006   2,824
  Solar N   Panamax   2006   3,398
       

About Navios Europe
Navios Europe is an owner and operator of container and tanker vessels. Navios Europe is owned 47.5% by Navios Maritime Holdings Inc. (NYSE: NM) ("Navios Holdings"), 47.5% by Navios Maritime Acquisition Corporation (NYSE: NNA) ("Navios Acquisition") and 5% by Navios Maritime Partners L.P. (NYSE: NMM) ("Navios Partners") 

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