Monaco-based container shipping company Navios Maritime Containers has agreed to purchase three containerships for a price of USD 117.25 million.
The company will acquire two 8,204 TEU containerships, the YM Utmost and the YM Unity, for USD 67 million from Navios Maritime Partners. The two vessels are chartered out at a net daily charter rate of USD 34,266 until August 2018 and October 2018, respectively.
The third unit, the 10,000 TEU containership, was purchased for USD 50.25 million from a third party. Navios Containers said that the vessel is time chartered out at a net daily charter rate of USD 26,663 until March 2019.
The trio is expected to join Navios Containers in the second quarter of 2018, increasing the company’s fleet to 25 vessels, totaling 119,538 TEU with an average age of 10.1 years.
Based on their existing charters and the current rate environment, the containerships are to generate around USD 18.7 million of aggregate EBITDA over the next twelve months.
Navios Containers said it would finance the fleet additions with cash on its balance sheet and approximately USD 61 million of new bank debt.
Additionally, the company unveiled that in March 2018 it executed a term sheet for an up to USD 119 million sale and leaseback agreement with a Chinese institution in order to refinance its credit facilities maturing in the fourth quarter of 2019.
The term sheet provides for 60 monthly payments of USD 1.4 million each. In the definitive agreements, Navios Containers will have an obligation to purchase the vessels at the end of fifth year for USD 59.5 million.
If completed, the refinancing is expected to release some USD 26.6 million of cash, before fees and expenses, and reduce the debt service cost for the remainder of 2018 by around USD 22.7 million, providing the company with an aggregate USD 49.3 million of incremental cash during 2018.
The transaction is expected to close within the second quarter of 2018.