Navios Maritime Containers Inc. (“Navios Containers” or the “Company”) (NOTC:NMCI), a growth vehicle dedicated to the container sector, announced today that it has agreed to acquire five containerships for a total purchase price of $246.0 million. The Company expects to take delivery of all five vessels in the third quarter of 2018. Based on existing charters and the current rate environment, the five containerships are expected to generate approximately $35.3 million of aggregate EBITDA over the next twelve months(1).
Navios Containers also acquired options for an additional four containerships for a purchase price of $36.0 million per vessel.
All of the acquisitions are subject to certain conditions, and there can be no assurances that these acquisitions will occur in whole or in part. In addition, we may be unable to secure debt financing for these acquisitions on terms satisfactory to us, or at all.
Vessels Being Acquired
| Vessels | Size (TEU) |
Year Built |
Current Net Charter Rate ($/day) |
Charter Expiration |
Expected NTM EBITDA(1) |
||
| Hyundai Hongkong | 6,800 | 2006 | $24,095 | Dec 2019 | $7.6 | ||
| $30,119 | Dec 2023 | ||||||
| TBN 1 | 10,000 | 2011 | $26,663 | May 2019 | $6.9 | ||
| TBN 2 | 10,000 | 2011 | $26,663 | Jun 2019 | $6.8 | ||
| TBN 3 | 10,000 | 2011 | $26,663 | April 2019 | $7.0 | ||
| TBN 4 | 10,000 | 2011 | $26,663 | April 2019 | $7.0 | ||
| Total – 5 Vessels | 46,800 | $35.3 | |||||
Optional Vessels
| Vessels | Size (TEU) |
Year Built |
Current Net Charter Rate ($/day) |
Charter Expiration |
Expected NTM EBITDA(1) |
|
| Hyundai Singapore | 6,800 | 2006 | $24,095 | Dec 2019 | $7.6 | |
| $30,119 | Dec 2023 | |||||
| Hyundai Busan | 6,800 | 2006 | $24,095 | Dec 2019 | $7.6 | |
| $30,119 | Dec 2023 | |||||
| Hyundai Shanghai | 6,800 | 2006 | $24,095 | Dec 2019 | $7.6 | |
| $30,119 | Dec 2023 | |||||
| Hyundai Tokyo | 6,800 | 2006 | $24,095 | Dec 2019 | $7.6 | |
| $30,119 | Dec 2023 | |||||
| Total – 4 Options | 27,200 | $30.4 | ||||
Containerships from Navios Maritime Partners L.P.
Navios Containers agreed to acquire one 6,800 TEU containership, the Hyundai Hongkong, for $36.0 million from Navios Maritime Partners L.P. (“Navios Partners”). The vessel is chartered out at a weighted average net daily charter rate of $28,523 until December 2023. Navios Containers is expected to finance the acquisition with additional borrowings of approximately $15.0 million under a new loan from a commercial bank (on terms consistent with existing credit facilities).
Navios Containers will have options to acquire four additional 6,800 TEU containerships from Navios Partners for $36.0 million per containership. Each of the four vessels are sister ships to the Hyundai Hongkong and have identical time charter employment in place.
Special Committee
The acquisition of the Hyundai Hongkong and the options to acquire the additional four 6,800 TEU vessels were unanimously approved by the Special Committee of the independent members of the Board of Directors of Navios Containers.
Containerships from a Third Party
Navios Containers agreed to acquire four 10,000 TEU containerships for $210.0 million from a third party. The vessels are employed on time charters with a net daily rate of $26,663 that expire between April and June 2019. Navios Containers is expected to finance these acquisitions with approximately $125.0 million of new bank debt (on terms consistent with its existing credit facilities).
(1) The Next Twelve Months (“NTM”) EBITDA calculations assume (a) revenue based on contracted weighted average time charter rates through the charter expiration dates (as indicated in the table above) and per open day; $30,500 for the 10,000 TEU containerships (Clarksons’ 6 to 12 month time charter rate for 9,000 TEU vessels as of May 2018) and (b) operating expenses in line with the management agreement and normal operations.
Fleet Update
Following this acquisition, Navios Containers will control 30 vessels, totaling 166,338 TEU with an average age of 9.8 years.
About Navios Maritime Containers Inc.
Navios Maritime Containers Inc. is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit our website at www.navios-containers.com.
Forward-Looking Statements
This press release contains forward-looking statements concerning future events, including future contracted revenues and rates, EBITDA, future financial performance of the fleet, future vessel acquisitions, timing of vessel deliveries, entering into further time charters, our ability to fund the intended vessel acquisitions and our ability to acquire and finance the option vessels. Words such as “may”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, and variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Containers at the time these statements were made. Although Navios Containers believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Containers. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to future vessel acquisitions, the quality and the market for the Company’s fleet, the uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the container shipping sector in general, fluctuations in charter rates for container carrier vessels, the aging of our vessels and resultant increases in operating costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Containers operates, and risks associated with global operations. Navios Containers expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Containers’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Containers makes no prediction or statement about the performance of its common shares.
Public & Investor Relations Contact:
Navios Maritime Containers Inc.
+1.212.906.8648
Investors@navios-containers.com
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