$664.3 million Note Retirement
• Extinguishment of $614.3 million Ship Mortgage Notes due January 15, 2022
• Redemption of $50.0 million of Senior Secured Notes due August 15, 2022
$550 million Debt Financing
• $287.0 million of Commercial Bank facilities and Sale-Leaseback Agreements
• $262.6 million PIK Loan facilities with NSM
Net Income
• $59.8 million in Q3 2021
• $84.9 million in 9M 2021
Revenue
• 33.5% increase to $168.4 million in Q3 2021
• 36.5% increase to $429.0 million in 9M 2021
Cash from operating activities
• $33.0 million in Q3 2021
• $31.7 million in 9M 2021
Adjusted EBITDA
• 94.0% increase to $116.1 million in Q3 2021
• 117.0% increase to $251.3 million in 9M 2021
Time Charter Equivalent
• $30,146 per day in Q3 2021 compared to $14,056 per day in Q3 2020
• $21,470 per day in 9M 2021 compared to $9,673 per day in 9M 2020
Navios Partners’ Merger
• NM owns 10.3% post merger with Navios Acquisition
Navios Maritime Holdings Inc. (“Navios Holdings” or the “Company”) (NYSE: NM), a global seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2021.
Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “I am pleased with the results for the third quarter of 2021. In the third quarter, Navios Holdings reported revenue of $168.4 million, EBITDA of $116.1 million and Net Income of $59.8 million. For the first nine months 2021, we reported revenue of $429.0 million, Adjusted EBITDA of $251.3 million and Adjusted Net income of $84.9 million.”
Angeliki Frangou, continued, “Navios announced plans for addressing about $770 million in upcoming note maturities. The announced refinancing addresses the imminent maturity of $614.3 million of Ship Mortgage Notes and provides liquidity and sufficient runway for Navios Holdings to satisfy $155.0 million of Senior Secured Notes maturing in August of 2022. Importantly, for about half of the new debt financing package, we achieved an 18-month period during which there would be no cash requirement for interest or amortization, and overall we extended and staggered the maturity date of our new debt facilities.”
HIGHLIGHTS – RECENT DEVELOPMENTS
$664.3 million Note Retirement
Navios Holdings expects to extinguish $614.3 million of its 7.375% First Priority Ship Mortgage Notes due January 15, 2022 (the “Ship Mortgage Notes”) and to redeem $50.0 million of its 11.25% Senior Secured Notes due August 15, 2022 (the “Senior Secured Notes”) through a combination of sources, including $550 million of debt financing described below and available cash. Navios Holdings has entered into the following agreements: (i) a term loan facility with Credit Agricole CIB (“CACIB”) and BNP Paribas (“BNPP”) of up to $105.0 million; (ii) a term loan facility with Hamburg Commercial Bank AG (“HCOB”) of up to $105.0 million; (iii) sale-leaseback agreements of $77.0 million in total and (iv) $262.6 million of PIK loan facilities from N Shipmanagement Acquisition Corp. and its subsidiaries (“NSM”), an entity affiliated with Navios Holdings’ Chairwoman and Chief Executive Officer, including additional liquidity of $150.0 million and providing for release of approximately $300.0 million of collateral. The PIK loan facilities from NSM provide for a 18-month period during which there will be no cash interest or amortization. These transactions are expected to close by the first half of January 2022.
Pro forma for the above transactions, Navios Holdings has decreased its leverage by 39.3% to $722 million from $1,189 million debt outstanding (including Ship Mortgage Notes repurchased which are being cancelled) as of December 31, 2020. In addition, Navios Holdings extended its maturities for the next four years in a staggered manner. The next maturity after the $105.0 million remaining Senior Secured Notes due in August 2022, will be in 2024.
Navios Partners’ Merger
On October 15, 2021, Navios Partners completed the merger (“NNA Merger”) with Navios Maritime Acquisition Corporation (“Navios Acquisition”). As a result thereof, Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding common unit of Navios Acquisition that was held by a unitholder other than Navios Partners, Navios Acquisition and their respective subsidiaries was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result, 3,388,226 common units of Navios Partners were issued to former public unitholders of Navios Acquisition.
After the completion of the NNA Merger, Navios Holdings has a 10.3% ownership interest in Navios Partners.
Fleet Statistics
Navios Holdings controls a fleet of 36 vessels totaling 3.9 million dwt, of which 25 are owned (including five bareboat-in vessels) and 11 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 12 Capesize, 19 Panamax, four Ultra-Handymax and one Handysize vessels, with an average age of 8.9 years.
Navios Holdings has currently chartered-out 100.0% of available days for the remaining three months of 2021. 88.4% of available days are chartered-out on fixed rate and 11.6% are chartered-out on index.
The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining three months of 2021 is $16,833 per day.
The above figures do not include the fleet of Navios Logistics.
Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.
Non-GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.
Full report: Navios Maritime Holdings Inc.