GRAND CAYMAN, Cayman Islands, June 30, 2021 (GLOBE NEWSWIRE) – Navios Maritime Holdings Inc. (âNavios Holdingsâ or âthe Borrowerâ) (NYSE: NM), a global shipping and logistics company, announced today the following events:
Senior secured term loan facility
Navios Holdings has entered into a senior secured term loan facility with an entity (âLenderâ) affiliated with its President and CEO, providing for a loan of $ 115.0 million (the âLoanâ) to –
- an advance of $ 75.3 million for the repayment of certain Navios Holdings 11.25% Senior Secured Notes (âSecured Notesâ) and General Corporate Purposes (âTranche Bâ); and
- refinance $ 39.7 million of existing debt of Navios Holdings to the lender (âTranche Aâ).
Tranche B of the loan will mature on February 28, 2023. Tranche A of the loan will mature on November 30, 2024. Both tranches include scheduled amortization payments and bear interest at the rate of 10.5% per annum, payable quarterly. The Borrower may elect to defer a 90 day scheduled amortization payment and interest payments, in which case the applicable interest rate will be 12.0% per annum, compounded quarterly.
The loan will be guaranteed by:
- First rank mortgage and related guarantee (assignment of income and insurance, etc.) on the vessel “Rainbow N”.
- First priority pledge on securities account holding $ 33.7 million in aggregate principal of Navios Holdings 7.375% first priority ship mortgage notes due 1/15/2022 (âNM Ship Mortgage Notesâ) and 40,587 ordinary shares of Navios Maritime Partners LP (NYSE: NMM).
- Second priority pledge on Navios South American Logistics Inc. (âNavios Logisticsâ) shares held by the Borrower.
- Pledge of second priority shares in two companies with sale-leaseback agreements.
- Pledge of second priority shares in five companies which hold the rights to certain bareboat contracts.
- Pledge of second priority shares on 4,865,147 common shares of Navios Maritime Acquisition Corp. (NYSE: NNA).
- Pledge of second-rank interests on 2,522,306 NMM common shares.
- Second priority pledge on the securities account holding $ 118.1 million in total principal of NM Ship mortgage notes.
- Pledge of second priority limited liability interests in Navios GP LLC
- Unsecured corporate guarantee from all subsidiaries of the Borrower (excluding Navios Logistics and its subsidiaries).
The board of directors of Navios Holdings 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 advisors, exclusively negotiated the terms of the loan.
Eighth additional contract
The previously disclosed eighth additional contract was entered into by Navios Holdings on June 29, 2021. Among others, the eighth additional contract:
- following the repayment of $ 100.0 million in principal of the guaranteed notes, eliminates the obligation of Navios Holdings to make a spring maturity offer for the guaranteed notes in September 2021;
- provides that future dividends paid in respect of the shareholders’ equity of Navios Logistics pledged as collateral for the Guaranteed Notes can only be used to redeem or redeem the Guaranteed Notes;
- authorizes the lender to take a second lien on the pledged equity collateral (the pledged equity collateral secures the notes secured on the basis of a first lien); and
- declares that the Company may cancel sums due to Navios Logistics under this loan agreement dated April 25, 2019 (as amended).
About Navios Holdings
Navios Maritime Holdings Inc. (NYSE: NM) is a global shipping and logistics company focused on the transportation and transshipment of dry bulk commodities including iron ore, coal and grains. For more information on Navios Holdings, please visit our website: www.navios.com.
Forward-looking statements – Safe Harbor
This press release and our call for results contain and will contain 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 future events, including our ability to refinance our short-term debt maturities, expected cash flow generation, future contractual income, potential capital gains, our ability to take advantage of market dislocation and any recovery in the market, and the growth strategy of Navios Holdings and the measures to implement these strategies; including expected vessel acquisitions and completion of other on-time charters. Words such as “may”, “expects”, “intends”, “plans”, “believes”, “foresees”, “hopes”, “estimates”, and variations of these words and Similar phrases are meant for statements. These statements include comments regarding expected income and on time charters. These forward-looking statements are based on the information available and the expectations and assumptions believed to be reasonable by Navios Holdings at the time these statements were made. Although Navios Holdings 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 known and unknown 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 Holdings. 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 whole world to contain its spread, including the effects on economic activity; the demand for sea transport of the products we ship; the ability and willingness of charterers to fulfill their obligations to us; charter rates in effect; shipyards carrying out washing installations, dry docks and repairs; change of vessel crews and availability of funding; 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 around the world integer to contain it; uncertainty related to world trade, including the prices of commodities transported by sea and persistent problems related to the volume and tonne-miles transported by sea; our continued ability to enter into long-term time charters; our ability to maximize the use of our vessels; the expected demand in the dry goods transport sector in general and the demand for our Panamax, Capesize, Ultra Handymax and Handysize vessels in particular; the aging of our fleet and the resulting increase in operating costs; the loss of any customer, charter or vessel; the financial situation of our clients; changes in the availability and costs of funding due to banking market conditions, capital markets and other factors; 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; 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 applicable to our business, general national and international political conditions; competitive factors in the market in which Navios Holdings operates; the value of our publicly traded subsidiaries; risks associated with operations outside the United States; and other factors listed from time to time in documents filed by Navios Holdings with the Securities and Exchange Commission, including its Forms 20-F and 6-K. Navios Holdings 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 Holdings’ expectations in this regard or any change in events, conditions or circumstances on which a statement is based on. Navios Holdings makes no predictions or representations about the performance of its common shares or debt securities.
Navios Maritime Holdings Inc.