Contact Information: Contacts Public & Investor Relations Contact: Navios Maritime Partners L.P. Investor Relations Nicolas Bornozis Capital Link, Inc. Tel. (212) 661-7566 E-mail: naviospartners@capitallink.com
Navios Maritime Partners L.P. Announces Agreement to Purchase All Rights to the Panamax Vessel "Navios Sagittarius"; 12-Month Option for the Capesize TBN I -- Replacing Purchase Obligation
| Source: Navios Maritime Partners L.P.
PIRAEUS, GREECE--(Marketwire - June 9, 2009) - Navios Maritime Partners L.P. ("Navios
Partners") (NYSE : NMM ), an owner and operator of Capesize and Panamax
vessels, announced today that it has agreed to purchase from Navios
Maritime Holdings Inc. ("Navios Holdings") (NYSE : NM ) the rights to the
Navios Sagittarius, a 2006 Japanese-built Panamax vessel with a capacity of
75,756 dwt. The $34.6 million acquisition will be funded from cash
available on the balance sheet. The vessel is expected to be delivered in
the second quarter of 2009.
Angeliki Frangou, Chairman and CEO or Navios Partners, commented, "The
acquisition of Navios Sagittarius expands our fleet to ten drybulk vessels
with a combined carrying capacity of 0.85 million dwt, average age of 6.3
years and remaining average charter-out period of 4.6 years. This
acquisition demonstrates that, despite challenging times, we can grow our
fleet and cash flow. We are also pleased by the commercially sensible
resolution of the TBN I obligation Navios Partners had with Navios
Holdings."
Navios Sagittarius
Navios Sagittarius is chartered out at $26,125 (net) per day until November
2018 and is expected to generate annual EBITDA of approximately $5.8
million. This charter contract has also been insured by an AA+ rated
European Union governmental agency. The Navios Sagittarius is a
chartered-in vessel, and Navios Partners has an option to purchase the
vessel, beginning December 2009, at an initial price of approximately $25.9
million at current exchange rates.
TNB I: 12-Month Option Agreement
Navios Holdings has relieved Navios Partners from its obligation to
purchase the Capesize vessel TBN I for $130.0 million and, upon delivery of
the TBN I to Navios Holdings, will grant Navios Partners a 12-month option
to purchase the vessel for $125.0 million. In return, Navios Holdings will
receive 1.0 million of subordinated units; these units will not be eligible
to receive distributions until the third anniversary of their issuance, at
which point they will automatically convert into common units and receive
distributions in accordance with all other common units. In addition,
Navios Holdings will be released from the Omnibus Agreement restrictions
for two years in connection with acquiring vessels from third parties (but
not from the required offer to sell to Navios Partners qualifying vessels
in Navios Holdings' existing fleet).
Cash Flow: Long Term and Insured
Navios Partners has entered into long-term time charters-out for its ten
vessels with a remaining average term of 4.6 years, compared to 4.1 years
prior to the acquisition. This provides a stable base of revenue and
distributable cash flow. Navios Partners' charter-out contracts have been
fully insured by an AA+ rated European Union governmental agency. Navios
Partners has currently contracted 100.0% of its available days on a
charter-out basis for 2009 and 2010, respectively, which is equivalent to
$90.3 million and $96.1 million in revenue, respectively.
About Navios Maritime Partners L.P.
Navios Partners (NYSE : NMM ), a publicly traded master limited partnership
formed by Navios Maritime Holdings Inc. (NYSE : NM ), is an owner and
operator of Capesize and Panamax 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
and Navios Partners' growth strategy and measures to implement such
strategy; including intended distributions, expected vessel acquisitions
and entering into further time charters. Words such as "expects,"
"intends," "plans," "believes," "anticipates," "hopes," "estimates," and
variations of such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments regarding
expected revenue and time charters. Although the 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 known and unknown risks and are
based upon a number of assumptions and estimates which 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 changes in the demand for dry bulk vessels, 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 the Navios Partners' filings with the Securities and Exchange
Commission. 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.