Navios Maritime Midstream Partners L.P. Announces Agreement to Acquire Two VLCCs From Navios Maritime Acquisition Corporation for $100.0 Million
- Q3 2015 distribution to be increased by 2.4% to
$0.4225per unit - $1.69annualized
- Distributions expected to grow 10% annually through mid-2016
- Total unit distribution coverage expected to be 1.1x
The acquisition of these two vessels is expected to provide Navios Midstream's unitholders with 10% distribution growth through mid-2016. Navios Midstream also expects annual free cash flow in excess of
$73.0 millionin proceeds from the recently announced $205.0 millionTerm Loan B issuance and $27.0 millionof a new class of subordinated units in Navios Midstream issued to Navios Acquisition.
Vessel Employment & EBITDA Contribution
The Nave Celeste a 2003-built VLCC of 298,717 dwt is employed at a net charter rate of
The C. Dream a 2000-built VLCC of 298,570 dwt is employed at a net charter rate of
The two VLCCs will contribute
A new class of subordinated units will be issued to Navios Acquisition for partial funding of the VLCC acquisitions. Τhe new class of subordinated units, with respect to liquidation, will be senior to the existing subordinated units and junior to the common units. The new class of subordinated units will be subordinated for three years from the date of issuance and automatically convert to common units at such time.
The transaction has been unanimously approved by the Conflicts Committee of Navios Midstream's Board of Directors.
Closing of the transaction is subject to successful consummation of the Term Loan B scheduled to close on
Forward-Looking Statements This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events (including Navios Midstream's ability to obtain a new credit facility on terms it deems advisable) and Navios Midstream's growth strategy and measures to implement such strategy; including expected 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. Such statements include comments regarding expected revenue and time charters. Although Navios Midstream 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 Midstream. 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, the condition of the global credit markets, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and drydocking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, 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, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Midstream operates; risks associated with operations outside
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