Navios Maritime Acquisition Corp.

Press Release

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September 10, 2010 at 8:32 AM EDT

Navios Maritime Acquisition Corporation Announces Closing of Seven VLCC Tankers Acquisition


Fleet Highlights:
- $74.9 million of annualized Base EBITDA
- $651.4 million of aggregate Base EBITDA
- Profit Sharing on five charter agreements
- Seven VLCC tankers - approximately 2.1 million dwt
- 8.8 years average charter-out term

PIRAEUS, Greece, Sept 10, 2010 /PRNewswire via COMTEX/ --

Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE: NNA) announced today that it consummated its previously announced acquisition of a seven VLCC tanker fleet from a private seller for an aggregate purchase price of $587.0 million.

The seven VLCC tankers have an average age of 8.6 years and a remaining charter-out term of 8.8 years with an average charter rate of $40,440 net per day. Five of the seven charters also have a profit sharing, providing potential upside.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, stated, "In a short period of time, we have established a strong foothold in the wet sector through the acquisition of a diversified fleet of 20 tanker vessels. We expect the VLCC fleet to be significantly accretive to our shareholders as the fleet generates secured EBITDA and has the potential for additional upside through a profit sharing mechanism."

Ms. Frangou continued, "Our efforts in Asia are being spearheaded by Fred Cheng, who has over 36 years experience in the shipping industry, focused primarily on the Asia-Pacific shipping markets. We expect that we will be able to cultivate new commercial relationships through these efforts as well as enhance our existing relationships."

The VLCC fleet, set forth below, is expected to deliver annualized base EBITDA (1) of $74.9 million and aggregate base EBITDA (2) of $651.4 million.

                              Built/
                            Delivery      Net Charter
       Vessel       DWT        Date          Rate
                                          ($ per day)
    Shinyo
     Splendor     306,474        1993        38,019
    Shinyo
     Navigator    300,549        1996        42,705
    C. Dream      298,570        2000    29,625 (3)
    Shinyo Ocean  281,395        2001        38,400
    Shinyo
     Kannika      281,474        2001        38,025
    Shinyo
     Saowalak     298,000        2010        48,153
    Shinyo
     Kieran       298,000      6/2011        48,153

                   Expiration
       Vessel         Date           Profit Share
    Shinyo Splendor 5/18/2014            None
    Shinyo
     Navigator     12/18/2016            None
    C. Dream        3/15/2019      50% above $30,000
                                   40% above $40,000
    Shinyo Ocean    1/10/2017      50% above $43,500
    Shinyo Kannika  2/17/2017      50% above $44,000
    Shinyo Saowalak 6/15/2025      35% above $54,388
                                   40% above $59,388
                                   50% above $69,388
    Shinyo Kieran   6/15/2026      35% above $54,388
                                   40% above $59,388
                                   50% above $69,388

(1) Assumes 355 Revenue days and Opex of $10,000 per day. Excludes profit sharing.

(2) Secured EBITDA over the life of the charter contract. Assumes 355 Revenue days and Opex of $10,000 per day escalating at 3% annually. Excludes profit sharing.

(3) Vessel sub-chartered at $34,843/day over the next two years.

Consideration

The $587.0 million consideration was financed as follows:

(a) $411.0 million of bank debt, incurred at closing;

(b) $113.8 million of cash, at closing ($133.8 million cash payment net of $20.0 million working capital adjustments);

(c) $11.0 million by issuing 1,894,918 Navios Acquisition common shares, at closing; and

(d) $51.2 million due to shipyard until 2011 for the newbuild scheduled for delivery in June 2011 (of which $36.3 million will be drawn down from existing debt facilities entered into in connection with this transaction).

The $411.0 million of bank debt consists of six credit facilities with a consortium of banks and has a weighted average margin of 2.94%. The cash portion of the consideration paid at closing was financed with (i) $32.2 million cash from the balance sheet of the acquired vessel owning subsidiaries, (ii) $40.0 million short term financing from Navios Maritime Holdings Inc. ("Navios Holdings") and (iii) existing cash resources of Navios Acquisition. The $40.0 million short term financing with Navios Holdings has a margin of LIBOR plus 300 bps and a term of 18 months, maturing on April 1, 2012.

Time Charter Coverage

Navios Acquisition owns 20 vessels with options to acquire two additional vessels and has contracted 89.1% and 80.2% of its available days on a charter-out basis for 2010 and 2011, respectively.

Navios Acquisition Consolidated Fleet

                                        Built/
                                       Delivery
       Vessel        Type      DWT       Date
                  Vessels in the water
    Colin Jacob   LR 1        74,671       2007
    Ariadne
     Jacob        LR 1        74,671       2007
    Shinyo
     Splendor     VLCC       306,474       1993
    Shinyo
     Navigator    VLCC       300,549       1996
    C. Dream      VLCC       298,570       2000
    Shinyo Ocean  VLCC       281,395       2001
    Shinyo
     Kannika      VLCC       281,474       2001
    Shinyo
     Saowalak     VLCC       298,000       2010


                  Vessels to be delivered
    Nave Cosmos   Chemical
                   Tanker     25,000   Q4 2010
    TBN           Chemical
                   Tanker     25,000   Q4 2010
    Shinyo
     Kieran       VLCC       298,000    6/2011
    TBN           LR 1        75,000   Q4 2011
    TBN           LR 1        75,000   Q4 2011
    TBN           MR 2        50,000   Q1 2012
    TBN           MR 2        50,000   Q2 2012
    TBN           MR 2        50,000   Q3 2012
    TBN           MR 2        50,000   Q3 2012
    TBN           MR 2        50,000   Q4 2012
    TBN           MR 2        50,000   Q4 2012
    TBN           MR 2        50,000   Q4 2012


                   Net Charter   Expiration
       Vessel          Rate         Date       Profit Share
                   ($ per day)
                          Vessels in the water

    Colin Jacob        17,000   June 2013     50% above $17,000
    Ariadne Jacob      17,000   July 2013     50% above $17,000
    Shinyo Splendor    38,019   5/18/2014           None
    Shinyo Navigator   42,705  12/18/2016           None
    C. Dream        29,625 (1)  3/15/2019    50% above $30,000
                                             40% above $40,000
    Shinyo Ocean       38,400  1/10/2017     50% above $43,500
    Shinyo Kannika     38,025  2/17/2017     50% above $44,000
    Shinyo Saowalak    48,153  6/15/2025     35% above $54,388
                                             40% above $59,388
                                             50% above $69,388

                      Vessels to be delivered
    Nave Cosmos
    TBN
    Shinyo Kieran      48,153  6/15/2026     35% above $54,388
                                             40% above $59,388
                                             50% above $69,388
    TBN
    TBN
    TBN
    TBN
    TBN
    TBN
    TBN
    TBN
    TBN


1. Vessel sub-chartered at $34,843/day over the next two years.

Representation

S. Goldman Advisors LLC acted as Navios Acquisition's sole financial advisor and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. and V&P Law Firm acted as legal counsel.

About Navios Maritime Acquisition Corporation

Navios Acquisition is an owner and operator of tanker vessels focusing in the transportation of petroleum products (clean and dirty) and bulk liquid chemicals.

For more information about Navios Acquisition, please visit our website: http://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) concerning future events and Navios Acquisition's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. Although the Navios Acquisition believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon 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 such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for tanker vessels, competitive factors in the market in which Navios Acquisition operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Acquisition's filings with the Securities and Exchange Commission. Navios Acquisition expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Acquisition's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Investor Relations Contact:
Navios Maritime Acquisition Corporation
+1.212.279.8820
info@navios-acquisition.com

SOURCE Navios Maritime Acquisition Corporation