Navios Acquisition Agrees Sale and Leaseback for 10 Ships

TankerIllustration; Source: Pexels under CC0 Creative Commons license

Navios Acquisition has secured sale and leaseback contracts for 10 product tankers, the company confirmed in its second quarter 2019 financial report.

Namely, the Angeliki Frangou-led tanker owner said that a USD 15 million sale and leaseback arrangement was drawn in August 2019 to finance one product tanker. The refinancing deal has a maturity of five years, is repayable in monthly installments of USD 0.2 million, and bears effective interest at LIBOR plus 345 bps per annum.

Another six vessels were tied up in a USD 90.8 million sale and leaseback that will be repaid through a period of 6.4 years on average, in quarterly installments of up to USD 2.8 million each with a repurchase obligation of up to USD 25.9 million. The sale and lease back arrangement bears interest at LIBOR plus a margin ranging from 335 bps to 355 bps per annum, depending on the vessel financed, Navios Acquisition noted.

The final three product tankers were refinanced through a USD 47.2 million sale and leaseback, to be repaid through a period of 5.5 years on average in USD 1.3 million quarterly installments and with a repurchase obligation of up to USD 19.2 million. The arrangement bears interest at LIBOR plus a margin ranging from 350 bps to 360 bps per annum.

Furthermore, the company is currently in discussion for a USD 31.8 million bridge financing with a commercial bank that will finance one VLCC under short term maturity of less than a year.

“Upon completion of the above transactions, Navios Acquisition expects to reduce its debt by approximately USD 33.4 million or 3% of outstanding debt,” the company added.

During the three-month period ended June 30, 2019, Navios Acquisition reported a net loss of USD 16.5 million, compared to a net loss of USD 22 million seen in the same quarter a year earlier.

Revenue for the quarter was up to USD 58.6 million from USD 41.5 million recorded in the second quarter of 2018.

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