Navios Containers Eyes USD 103 Mn Refinancing

Monaco-based shipping company Navios Maritime Containers is in advanced discussions for refinancing its credit facilities maturing in the fourth quarter of 2019.

Under one of the alternatives for such refinancing of the credit facilities, which amount to a total of USD 102.7 million outstanding on December 31, 2017, the daily debt service cost in 2018 for its containerships would be reduced by 58%.

Navios Containers said that no assurances can be provided that it will successfully refinance these credit facilities.

The development was revealed as part of the company’s financial report in which it said that its net income for the fourth quarter of 2017 was USD 1.7 million, while its net income stood at USD 2.6 million at year end.

The company’s revenue for the three months ended December 31, 2017 was at USD 21.3 million. For the period from April 28, 2017, the company’s date of inception, to the end of the year, Navios Containers said that its revenue reached USD 39.2 million.

After it grew its fleet by 50 percent in the fourth quarter of 2017, the container shipping company said it sees more acquisition opportunities. During the three months, the company went on a shopping spree, buying seven containerships for USD 128 million. The additions grew its fleet from 14 to 21 vessels at year end.

“Our run rate continues to rise, and we expect a 32 percent increase of available days in Q1 2018 over Q4 2017. We are also continuing to see attractive acquisition opportunities as the market consolidates,” Angeliki Frangou, Chairman and Chief Executive Officer, said.

Other developments in the quarter included an additional tranche which Navios Containers agreed in December 2017 to its existing July 2017 USD 21 million credit facility with a commercial bank for an incremental amount of USD 50 million in order to finance the acquisition of four 2008-built containerships.

This tranche bears interest at LIBOR plus 385 bps per annum. The entire USD 71 million facility now matures in the fourth quarter of 2019 and is repayable in eight quarterly payments of USD 6.5 million each, plus a balloon payment on the last repayment date.

As of December 31, 2017, the outstanding principal amount under this new tranche of the facility was USD 50 million and the total amount outstanding under this facility was USD 70.2 million.

 

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