Navios Maritime Partners L.P., an international owner and operator of dry cargo vessels, managed to repay a major loan amounting to USD 418.5 million by combining three types of refinancing.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “We are pleased with the refinancing of the Term Loan B as we devoted a great deal of effort to achieving this result. Through a combination of cash, commercial bank debt and sale and leaseback transactions, we materially reduced our cost of capital and strengthened our balance sheet.”
The outstanding balance of the Term Loan B at December 31, 2018 was $418.5 million and was repayable in September 2020.
Navios Partners funded the refinancing as follows:
1) $301.3 million financing from commercial banks, with average (a) amortization profile of 7.1 years (17.2 years on an age-adjusted basis), (b) annual interest of LIBOR plus 290 bps, and (c) maturity of 4.6 years;
2) $49.5 million financing through sale and leaseback transactions. The sale and leaseback transactions have average (a) duration of 9.4 years and (b) implied interest rate of 6.3%. There are no financial covenants or loan-to-value requirements in the sale and leaseback transactions; and
3) $67.7 million from cash on balance sheet.
Following the completion of the refinancing, Navios Partners has extended the maturities of its debt through 2029. Furthermore, there are no debt maturities until Q4 2021.