Navios Maritime Containers Inc. (the “Company” or “Navios Containers”) (NOTC:NMCI), a growth vehicle dedicated to the container sector, announced today that it agreed to acquire three containerships for a total purchase price of $117.25 million.
|Year Built||Current Net Charter Rate
|Charter Expiration||Expected NTM EBITDA(1)|
|YM Utmost||8,204||2006||$34,266||Aug 2018||$5.5|
|YM Unity||8,204||2006||$34,266||Oct 2018||$6.4|
|Navios Unison||10,000||2010||$26,663||Mar 2019||$6.8|
Navios Containers agreed to acquire two 8,204 TEU containerships, the YM Utmost and the YM Unity, for $67.0 million from Navios Maritime Partners L.P. (“Navios Partners”). The two vessels are chartered out at a net daily charter rate of $34,266 until August 2018 and October 2018, respectively.
The acquisition of the YM Utmost and the YM Unity was unanimously approved by the Special Committee of the independent members of the Board of Directors of Navios Containers.
Navios Containers agreed to acquire one 10,000 TEU containership for $50.25 million from a third party. The vessel is time chartered out at a net daily charter rate of $26,663 until March 2019.
The Company expects to take delivery of all three vessels in the second quarter of 2018.
Based on their existing charters and the current rate environment, the containerships are expected to generate approximately $18.7 million of aggregate EBITDA over the next twelve months.(1)
Navios Containers is expected to finance the acquisitions with cash on its balance sheet and approximately $61.0 million of new bank debt.
(1) The Next Twelve Months (“NTM”) EBITDA calculations assume (a) revenue based on contracted time charter rates through the charter expiration dates (as indicated in the table above) and per open day; $20,000 and $27,000 for the 8,204 TEU and 10,000 TEU containerships, respectively and (b) operating expenses in line with the management agreement and normal operations.
Following this acquisition, Navios Containers will own 25 vessels, totaling 119,538 TEU with an average age of 10.1 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.
This press release contains forward-looking statements concerning future events; future vessel acquisitions and entering into further time charters. 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 Navios Containers’ 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 Navios Containers’ fleet 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.
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Navios Maritime Containers Inc.