Tanker shipping company Navios Maritime Acquisition repaid a USD 196.8 million term loan on October 18, 2019.
The company said that the outstanding balance of the Term Loan B was USD 196.8 million at June 30, 2019 and was repayable in June 2020.
Navios Acquisition funded the repayment with USD 153 million of financing through sale-and-leaseback transactions. The sale and leaseback transactions have average amortization profile of around 17 years on an age-adjusted basis, annual interest of LIBOR plus a margin ranging from 335 bps to 360 bps and maturity of 6 years.
An additional USD 31.8 million financing came from a commercial bank, with amortization profile of 10 years on an age-adjusted basis, annual interest of LIBOR plus 280 bps, and maturity of 1 year, while USD 12 million was added from cash on balance sheet.
“We are pleased with the repayment of the Term Loan B as we devoted a great deal of effort to achieving this result. Through a combination of sale-and-leaseback transactions, commercial bank debt and cash, we extended the maturities of our debt through 2027, reduced our cost of capital and strengthened our balance sheet,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, said.
Following the completion of the repayment of the Term Loan B, Navios Acquisition has no debt maturities until the third quarter of 2020.