Navios Maritime Acquisition Corporation announces entry into new secured loan facility

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MONACO, April 13, 2021 (GLOBE NEWSWIRE) – Navios Maritime Acquisition Corporation (“Navios Acquisition” or “the Borrower”) (NYSE: NNA), a tanker owner and operator, has announced that Navios Acquisition has entered into a secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp. (“Lender”), an entity affiliated with the President and CEO of Navios Acquisition, for a loan of up to $ 100.0 million to be used for general corporate purposes (the “Loan” ).

The loan has a two-year term, expected amortization, and bears interest at the rate of 11% per annum, payable quarterly. The Borrower may elect to defer all scheduled amortization and interest payments, in which case the applicable interest rate is 12.5% ​​per annum.

The loan offers the lender an option, exercisable from August 2021, to acquire interests in the partnership of Navios Maritime Midstream Partners LP (“Midstream”), the borrower’s unrestricted subsidiary, by exchanging any part of the amounts Midstream equity loan arrears. The exchange rate will be determined based on the gross value of Midstream’s assets less the amount of Midstream’s indebtedness.

The loan guarantee consists of:

(I)

priority pledging of the partnership interests of Midstream, which owns 25 tankers (ten LR1 tankers, 14 MR2 tankers and one MR1 tanker);

(ii)

a priority pledge of the participations in two entities which hold the rights to the bareboat charter contracts for two of the Borrower’s VLCC vessels; and

(iii)

a first priority pledge of the total principal amount of $ 67.4 million of Navios Acquisition’s first priority ship mortgage notes due 2021.

Navios Acquisition drew $ 18.0 million on the loan.

Special committee

The board of directors of Navios Acquisition has formed a special committee of independent and disinterested directors to assess the loan. The Special Committee, with the assistance of its independent financial and legal advisers, exclusively negotiated the terms of the loan.

About Navios Acquisition

Navios Acquisition (NYSE: NNA) is a tanker owner and operator focused on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information on Navios Acquisition, please visit our website: www.navios-acquisition.com.

Forward-looking statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding events and expectations future, including with regard to the acquisition of Navios. future dividends, expected cash flow generation and growth strategy of Navios Acquisition and the measures to implement this strategy, including the expected vessel acquisitions and the conclusion of new employment contracts. Words such as “may”, “expects”, “intend”, “plans”, “believes”, “foresees”, “hopes”, “estimates” and variations of these words and expressions Similar are intended to identify statements. These statements include comments on expected income and employment contracts. These forward-looking statements are based on the information available and the expectations and assumptions considered reasonable by Navios Acquisition at the time these statements were made. Although Navios Acquisition believes that the expectations reflected in these forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct. These statements involve risks and are based on a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Acquisition. Actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks related to: global and regional economic and political conditions, including the impact of the COVID-19 pandemic and efforts in the entire world to contain its spread, including the effects on the global economy activity, the demand for ocean transportation of the products we ship, the ability and willingness of charterers to meet their obligations to us and the rates of charter in effect, shipyards performing washing facilities, drydocking and repairs, changing of vessel crews and availability of funding; the potential disruption of shipping routes due to accidents, disease, pandemics, political events, piracy or terrorist acts, including the impact of the COVID-19 pandemic and ongoing efforts in the world to contain it; the creditworthiness of our charterers and the ability of our contractual counterparties to meet their obligations to us; trends in the tanker industry, including charter rates and vessel values ​​and factors affecting supply and demand for vessels; the aging of our vessels and the resulting increase in operating and dry-out costs; the loss of any customer, charter or vessel; our ability to repay outstanding debts, obtain additional financing and secure replacement charters for our vessels, in each case, at commercially acceptable rates or not at all; increases in costs and expenses, including, but not limited to, crew salaries, insurance, provisions, port expenses, lubricating oil, bunkers, repairs, maintenance and general and administrative expenses; the expected cost and our ability to comply with government regulations and standards of self-regulatory maritime organizations, as well as standard regulations imposed by our charterers and applicable to our business; potential liability for litigation and operations of our vessels, including the discharge of pollutants; general national and international political conditions; competitive factors in the market in which Navios Acquisition operates; operations outside the United States; and other factors listed from time to time in documents filed by Navios Acquisition with the SEC, including its annual and interim reports filed on Forms 20-F and 6-K. Navios Acquisition expressly disclaims any obligation or commitment to publicly release any update or revision to any forward-looking statement contained herein to reflect any change in Navios Acquisition’s expectations in this regard or any change in events, conditions or circumstances on which a statement is based on. Navios Acquisition makes no predictions or representations about the performance of its common shares.

Public relations and investors contact:

Navios maritime acquisition company

+1.212.906.8644

[email protected]


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