Navios Maritime Holdings Inc. Announces Purchase and Delivery of New Build Ultra Handymax Vessel
24 September 2009 - 10:30PM
PR Newswire (US)
PIRAEUS, Greece, Sept. 24 /PRNewswire-FirstCall/ -- Navios Maritime
Holdings Inc. ("Navios Holdings") (NYSE:NM) a global, vertically
integrated seaborne shipping and logistics company, announced today
that it has purchased the Navios Celestial, a 2009 built Ultra
Handymax vessel, of 58,084 dwt, from a Japanese Shipyard. The
vessel's nominal purchase price of $36.2 million was funded with
$31.2 million of cash, and $5.0 million in mandatorily convertible
preferred stock. As a result, the vessel's effective purchase price
was $33.5 million, using the $10.00 mandatory conversion price of
the preferred stock. The terms of the mandatory convertible
preferred stock are set forth below. Angeliki Frangou, Chairman and
CEO of Navios Holdings stated, "We are pleased with this new
acquisition, as it reflects acceptance by a new shipyard of our
equity and our continued ability to purchase modern vessels through
novel financing techniques. Initially we will employ this vessel in
the spot market. At an appropriate time we will seek to employ the
vessel under period charter." Fleet Profile Navios Holdings
currently controls a fleet of 60 vessels totaling 6.4 million dwt,
of which 33 are owned and 27 are chartered-in under long-term
charters. Navios Holdings operates 39 vessels (eight Capesize, 13
Panamax, 17 Ultra Handymax and one Handysize product tanker)
totaling 3.3 million dwt. The average age of the operating fleet is
4.7 years. Navios Holdings also has 21 newbuildings to be
delivered. These vessels are expected to be delivered at various
dates through 2013. Terms of Mandatorily Convertible Preferred
Stock In general, the holders of the mandatorily convertible
preferred stock will receive an annual dividend equal to 2%, or
$0.1 million, payable quarterly, until such time as the preferred
stock converts into common stock. The preferred stock will
mandatorily convert into common stock as follows: (1) following the
third anniversary of such preferred stock's issuance, if the common
stock closing price is at least $20.00 per share for 10 consecutive
business days, then the outstanding preferred stock automatically
converts at a conversion price of $14.00 per share of common stock;
and (2) any outstanding mandatorily convertible preferred stock
will mandatorily convert into common stock five years from the date
of such issuance at a $10.00 price per share of common stock. The
holder shall have the right to convert the outstanding shares of
such preferred stock into common stock prior to the scheduled
maturity date at a price of $14.00 per share of common stock. The
number of shares of common stock that may be issued upon conversion
ranges from 0.36 million, if all preferred shares are converted at
$14.00 per share of common stock, to 0.50 million, if all preferred
shares are converted at $10.00 per share of common stock. About
Navios Maritime Holdings Inc. Navios Maritime Holdings Inc. is a
global, vertically integrated seaborne shipping and logistics
company focused on the transport and transshipment of drybulk
commodities including iron ore, coal and grain. Navios Holdings
may, from time to time, be required to offer certain owned Capesize
and Panamax vessels to Navios Maritime Partners L.P. for purchase
at fair market value according to the terms of the Omnibus
Agreement. For more information please visit its website:
http://www.navios.com/. Forward-Looking Statements - Safe Harbor
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 Holdings' growth strategy and
measures to implement such strategy; including 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 revenues and time
charters. Although Navios Holdings 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 Holdings. 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 drybulk vessels, competitive factors in
the market in which Navios Holdings operates; risks associated with
operations outside the United States; and other factors listed from
time to time in Navios Holdings' filings with the Securities and
Exchange Commission. Navios Holdings 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 Holdings' expectations with respect
thereto or any change in events, conditions or circumstances on
which any statement is based. Public & Investor Relations
Contact: Navios Maritime Holdings Inc. Investor Relations
+1.212.279.8820 DATASOURCE: Navios Maritime Holdings Inc. CONTACT:
Investor Relations, Navios Maritime Holdings Inc., +1-212-279-8820,
Web Site: http://www.navios.com/
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