Navios Europe Inc. announced today they have acquired ten vessels from debtors of HSH Nordbank AG including five product tankers and five Panamax and sub-Panamax container vessels. The deal was closed for a total consideration of $127.8 million in cash and the assumption of $173.4 million Subordinated HSH Participating Loan.
Navios says the acquired ships have an average age of 6.0 years and a current fair market value of approximately $218 million. Five vessels have already been delivered to Navios Europe’s fleet with the remaining vessels expected to be delivered by the end of 2013.
Angeliki Frangou, Chairman and Chief Executive Officer, commented on the acquisition:
“This innovative financing structure provides relief to distressed assets from bankruptcy and places them into Navios’s stable ownership, thereby leveraging our economies of scale and superior technical and commercial management. Navios and HSH are committed to their excellent working relationship and look forward to doing similar deals in near future.”
Navios notes the cash payment is funded by $120.4 million senior bank debt and $10 million investment from Navios Maritime Holdings Inc, Navios Maritime Acquisition Corporation and Navios Maritime Partners L.P. The senior bank debt is secured by a first priority mortgage on the vessels and does not include any holding company guarantees from the Navios public entities.
Navios Holdings, Navios Acquisition and Navios Partners will provide additional working capital to Navios Europe on a priority basis. The Navios Working Capital Loans will accrue interest at 12.7%.
Navios adds that more vessels may be acquired from HSH in the future at similar terms.