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Wednesday, August 10, 2022

Navios Maritime Holdings Sells Its 36 Dry Bulk Vessels to Navios Maritime Partners

Maritime Activity Reports, Inc.

July 28, 2022

Navios Maritime Holdings Inc. on Wednesday announced it has reached a deal to sell its 36-vessel dry bulk fleet to Navios Maritime Partners L.P. approximately $835 million.

Navios Holdings, which holds a 10.3% interest in the US publicly listed shipping company Navios Partners, with the sale officially exited direct fleet ownership. Going forward, the company said kit plans to focus on growing Navios South American Logistics Inc. business.

"We believe Navios Logistics is a leading infrastructure and logistics company in the Hidrovia region of South America having a a unique infrastructure comprising of port terminal facilities, barge and cabotage fleet; favorably located assets; Nueva Palmira terminal a critical infrastructure asset; a long-term “take-or-pay” contract with Vale; a favorable market backdrop to support growth and compelling growth opportunities.

Navios Holdings will assume $441.6 million of bank liabilities, bareboat obligations and finance leasing obligations, subject to debt and working capital adjustments (the “Transaction”), from Navios Maritime Holdings Inc. (“Navios Holdings”) (NYSE:NM).]The 36-vessel drybulk fleet consists of 26 owned vessels and 10 chartered-in vessels (all with purchase options) with a total capacity of 3.9 million dwt and an average age of 9.6 years. Assuming Clarksons’ 1-YR TC rate (as of July 22, 2022) and certain operating cost assumptions(1), the acquired vessels are expected to generate approximately $164.0 million of estimated EBITDA and $81.5 million of estimated free cash in 2023.

Following the completion of the Transaction, Navios Partners will own and operate a fleet comprised of 90 dry bulk vessels, 49 containerships and 49 tanker vessels, including 22 newbuilding vessels to be delivered through the first quarter of 2025.

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