Navios Acquisition reports results for H1 2019
Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, reported its financial results today for the second quarter and six months ended June 30, 2019.
On July 24, 2019, the Board of Directors declared a quarterly cash dividend in respect of the second quarter of 2019 of $0.30 per share of common stock, which will be paid on October 9, 2019, to stockholders of record as of September 25, 2019. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.
In June 2019, Navios Acquisition prepaid its existing bank financing of $21.5 million that was used to finance one product tanker. In August 2019, Navios Acquisition agreed to enter into certain financing arrangements with the purpose to refinance its Term Loan B facility of $196.8 million outstanding as of June 30, 2019, maturing in June 2020:
$15.0 million sale and lease back arrangement that was drawn in August 2019 to finance one product tanker and has a maturity of five years. The sale and lease back arrangement is repayable over the five years in consecutive monthly installments of $0.2 million each and bears effective interest at LIBOR plus 345 bps per annum. The net proceeds of the sale and lease back arrangement were used to partially prepay the Term Loan B.
up to $90.8 million sale and lease back arrangement that will finance six product tankers and will be repaid through a period of 6.4 years on average, in consecutive quarterly installments of up to $2.8 million each, with a repurchase obligation of up to $25.9 million in total. The sale and lease back arrangement bears interest at LIBOR plus a margin ranging from 335 bps to 355 bps per annum, depending on the vessel financed.
up to $47.2 million sale and lease back arrangement that will finance three product tankers and will be repaid through a period of 5.5 years on average, in consecutive quarterly installments of up to $1.3 million each, with a repurchase obligation of up to $19.2 million in total. The sale and lease back arrangement bears interest at LIBOR plus a margin ranging from 350 bps to 360 bps per annum, depending on the vessel financed.
up to $31.8 million bridge financing currently under discussion with a commercial bank that will finance one VLCC under short term maturity of less than a year.
Upon completion of the above transactions, Navios Acquisition expects to reduce its debt by approximately $33.4 million or 3% of outstanding debt.
In August 2019, Navios Acquisition entered into an agreement to sell the Nave Electron, a 2002-built VLCC vessel of 305,178 dwt to an unaffiliated third party for a sale price of $25.3 million. The vessel is expected to be delivered to its new owners in September 2019.
As of August 20, 2019, Navios Acquisition’s fleet consisted of a total of 41 vessels, of which 13 are VLCCs (excluding the Nave Electron which has been agreed to be sold and including three bareboat chartered-in VLCCs expected to be delivered in the third and fourth quarters of 2020 and the third quarter of 2021, respectively), 26 are product tankers, two are chemical tankers.
Currently, Navios Acquisition has contracted 83.1% of its available days on a charter-out basis for the second half of 2019, which are expected to generate revenues of approximately $73.6 million. The average contractual net daily charter-out rate for the 57.7% of available days that are contracted on base rate and/or base rate with profit sharing arrangements is expected to be $17,994.
Navios Acquisition is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals.