Navios Maritime Holdings Inc. Announces Delivery of One New Capesize Vessel and Acquisition of Capesize Vessel under Constructio
03 February 2010 - 12:55AM
PR Newswire (US)
PIRAEUS, Greece, Feb. 2 /PRNewswire-FirstCall/ -- Navios Maritime
Holdings Inc. ("Navios Holdings") (NYSE:NM), a global, vertically
integrated seaborne shipping and logistics company, announced today
the delivery of a new build Capesize vessel and the agreement to
acquire another new build Capesize vessel. Navios Antares Delivery
The Navios Antares, a 169,059 dwt Capesize vessel, was delivered to
Navios Holdings' owned fleet on January 20, 2010 from a South
Korean Shipyard. Agreement to Acquire New Capesize Vessel Navios
Holdings agreed to acquire a new build Capesize vessel of 180,000
dwt, under construction with a South Korean Shipyard. The vessel is
scheduled for delivery in the second quarter of 2011 and is secured
by a 12-year charter to a quality counter party for $27,431 (net)
daily rate. It is anticipated that this charter will generate
annual EBITDA of $8.1 million and cumulative EBITDA of $92.6
million. The acquisition price for the vessel is nominally $55.5
million, payable as follows: -- $52.5 million in cash; and -- $3.0
million payable in the form of Convertible Preferred Stock. The
terms of the convertible preferred stock are set forth below. Term
of Convertible Preferred Stock In general, the preferred
shareholders will receive an annual dividend equal to 2% of the
$3.0 million value prescribed per preferred share ($0.06 million in
total) until such time as the preferred shares convert into common
stock. The convertible preferred stock will mandatorily convert
into common stock as follows: 30% of the shares shall convert in 5
years from the date of issuance and the 70% balance shall convert
in ten years from the date of issuance at a price per share of
common stock of not less than $10.00. The holder shall have the
right to convert the preferred shares into common prior to the
scheduled maturity date at a price of $14.00 per share.
Consequently, the total common shares to be issued ranges from 0.21
million to 0.30 million. Time Charter Coverage As of February 2nd
2010, Navios Holdings had contracted 89.4%, 65.7%, and 57.0% of its
available days on a charter-out basis for 2010, 2011 and 2012,
respectively. Navios Holdings has extended its long-term fleet
employment by entering into agreements to charter-out vessels for
periods ranging from one to 12 years. 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. For more information please visit our website:
http://www.navios.com/. Navios Holdings may, from time to time, be
required to offer certain owned Capesize and Panamax vessels to
Navios Maritime Partners L.P. ("Navios Partners") (NYSE:NMM) for
purchase at fair market value according to the terms of the Omnibus
Agreement. For more information please visit its website:
http://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 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 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. +1.212.279.8820 DATASOURCE: Navios Maritime Holdings
Inc. CONTACT: Public & Investor Relations, Navios Maritime
Holdings Inc., +1-212-279-8820, Web Site: http://www.navios.com/
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