Navios Maritime Midstream Partners L.P. Announces Fleet Renewal and Distribution
Fleet Renewal and Backstop
Navios Midstream agreed to acquire the Nave Galactic a 2009-built VLCC from
Navios Acquisition’s charter rate backstop has been extended to the Nave Galactic. This charter rate backstop was previously for the Shinyo Kannika, and under the backstop Navios Acquisition will pay Navios Midstream any shortfall between (a)
The acquisition of the Nave Galactic, a nine-year old vessel, and the sale of the Shinyo Kannika, a 17-year old vessel, will reduce the average age of the fleet by 10%. Navios Midstream will continue to refresh its fleet, thereby seeking to revitalize its cash flow generating ability.
The Nave Galactic will substitute for the Shinyo Kannika under the Term Loan B.
The acquisition of the Nave Galactic transaction has been unanimously approved by the Conflicts Committee of the Board of Directors (“Board”) of Navios Midstream.
The Board has reset the annual distribution policy to
Since going public in the fourth quarter of 2014, Navios Midstream returned capital to unitholders, without reduction. Any unitholder who purchased common units on the IPO date would have received a total of
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 and expectations, including with respect to Navios Midstream’s future dividends 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. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Navios Midstream at the time these statements were made. 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 that 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 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 the
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