Navios Maritime Containers, a newly formed Marshall Islands company, announced that it has agreed with investors to sell approximately 15 million of its shares for an aggregate of approximately $75 million of gross proceeds at a subscription price of $5.00 per share. Navios Containers intends to use the proceeds to acquire the 14-vessel container fleet that Navios Maritime Partners L.P.previously agreed to purchase from Rickmers Maritime as well as for further vessel acquisitions, working capital and general corporate purposes. Navios Partners will invest $30 million and receive 40% of the equity, and Navios Maritime Holdings (NM) will invest $5 million and receive 6.67% of the equity of Navios Containers. Each of Navios Partners and Navios Holdings will also receive warrants, with a five-year term, for 6.8% and 1.7% of the equity, respectively.
Navios Maritime announced that it executed, for itself and/or for its affiliates, an exclusivity agreement and term sheet to purchase directly or indirectly, 100% of FSL Asset Management Pte. and not less than a total of 50.1% of First Ship Lease Trust from an existing shareholder and FSL Trust. FSL Trust is listed on the Mainboard of the Singapore Exchange Securities Trading Limited. FSL Trust is a Singapore-based business trust which owns a diversified fleet of 22 modern and high-quality oceangoing vessels (the "Fleet"). The Fleet includes 12 product tankers, three chemical tankers, two crude oil tankers and five container vessels. The FSL Trust Fleet is a natural fit for the 170+ vessel diversified fleet controlled by Navios, which includes dry bulk and container vessels as well as crude and product tankers. The acquisition is subject to a number of conditions, including the satisfactory restructuring of the existing mortgage debt and other loan facilities of FSL Trust, waiver by the Securities Industry Council of any obligation for Navios to make a mandatory take-over offer for all the units in FSL Trust and approval of FSL Trust's independent unitholders of the Whitewash Waiver. No assurance can be provided that these conditions will be satisfied and that any acquisition will be concluded. The Parties have agreed to negotiate exclusively with each other and will seek to execute definitive agreements by September 30.
Navios Maritime Partners (NMM) announced that it has agreed to acquire from Navios Maritime Holdings (NM) a 47.5% participation interest that Navios Holdings indirectly owns in certain loan facilities previously made to Navios Europe. The purchase price is $27M, payable in the form of $4.05M in cash and approximately 13.1M common units of NMM. The loans being purchased have an aggregate balance of $21.4M as of February 2017, earn interest at 12.7% annually and mature no later than December 2023 with an estimated nominal value of $51.3M. Navios Partners may require Navios Holdings, under certain conditions, to repurchase the loans after the third anniversary of the date of the sale based on the then outstanding balance of the loans.
Navios Maritime (NM) and its subsidiary, Navios South American Logistics, announced that on December 21, 2016, a London arbitration tribunal ruled the 20-year contract between Corporacion Navios S.A. and Vale International S.A. (VALE) for the iron ore port under construction to be in full force and effect. After receiving written notice from Vale repudiating the Contract, Navios initiated arbitration proceedings in London pursuant to the dispute resolution provisions of the Contract. On December 21, 2016 the arbitration tribunal issued its decision that the Contract remains in full force and effect. The arbitration tribunal also determined that Navios may elect to terminate the Contract if Vale were to further repudiate or renounce the Contract and then would be entitled to damages calculated by reference to guaranteed volumes and agreed tariffs for the remaining period of the Contract.