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Friday, September 30, 2016

Navios Agrees to Acquire Four Newbuilds

June 24, 2009

Navios Maritime Holdings Inc. Announces Agreement to Acquire Four New Build Capesize Vessels with Secured Long-Term Employment Generating Approximately $43.33 million of EBITDA Annually
- Issuance of $165.22 million of Mandatorily Convertible Preferred Stock
- $52.82 Million Reduction in Cash Requirements for Three Existing New Build Capesize Vessels
- Conference Call and Webcast: Tuesday, June 23, 2009 at 08:00 am EDT

Navios Maritime Holdings Inc. (NMHDF) (NYSE:NM) a global, vertically integrated seaborne shipping and logistics company, announced that it has reached an agreement to acquire four Capesize vessels, three of which are from companies controlled by Commerzbank A.G. All vessels are currently under construction at the same South Korean Shipyard.

Navios Holdings also announced that it amended the terms of existing agreements for three new build Capesize vessels. Navios Holdings will fund a portion of the purchase price for all seven vessels by issuing $165.2m in mandatorily convertible preferred stock.

Angeliki Frangou, Chairman and CEO of Navios Holdings stated, "The new acquisitions demonstrate our ability to grow our fleet and cash flow by taking advantage of market dislocations. Today's agreement to acquire four vessels will generate approximately $43.33 million of EBITDA annually. These acquisitions also demonstrate the vitality of Navios' business as various industry participants have found our equity attractive."

"Using mandatorily convertible preferred stock to fund cash requirements strengthens our balance sheet, as we conserve more than $165.22 million of cash. Moreover, issuing such stock protects shareholders from undue dilution, as the mandatorily convertible preferred stock is convertible into common stock at a multiple of the current market price of the common stock."

The aggregate purchase price for the four new vessels will be approximately $324.5m payable with a combination of cash and mandatorily convertible preferred stock. The vessels will be employed under existing long-term charter-out contracts with an average length of 9.75 years and will generate approximately $43.3m in annual EBITDA (assuming operating expense of $5,000 per day and 360 revenue days per year).

(www.navios.com)



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