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. (Navios Holdings), Navios Maritime Acquisition Corporation (Navios Acquisition) and Navios Maritime Partners L.P. (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.
HSH has agreed to provide Navios Group the opportunity to acquire more vessels at terms no less favorable than this transaction.
Navios Europe, December 18, 2013