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RECENT DEVELOPMENTS Increase in Cash Distributions The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2010 of $0.42 per unit. This represents an increase of 1.2% from the cash distribution of $0.415 per unit declared in the first quarter of 2010. The distribution is payable on August 12, 2010 to holders of record on August 9, 2010. Vessel acquisition On May 21, 2010, Navios Partners purchased from Navios Holdings the vessel Navios Pollux, a 180,727 dwt Capesize vessel built in 2009, for a price of $110.0 million. Navios Pollux has been chartered out at a net rate of $42,250 per day until July 2019. The annual EBITDA is expected to be approximately $13.2 million. Following the acquisition of Navios Pollux, Navios Partners’ operational fleet consists of 14 drybulk vessels comprised of one Ultra-Handymax, three Capesize and ten Panamax vessels. The fleet has a total capacity of approximately 1.3 million dwt and an average age of approximately 5.7 years. Navios Alegria Charter Party We have entered a new charter party agreement for Navios Alegria at a net rate of $16,984 plus profit sharing of 50% above the rate of $16,984 per day based on Baltic Panamax TC Average, calculated and settled every 15 days. The term of this charter party is three years commencing in January 2011. Completion of Offering of 5,175,000 Common Units raising $92.3 million gross proceeds On May 5, 2010, Navios Partners completed its public offering of 4,500,000 common units at $17.84 per unit and raised gross proceeds of approximately $80.3 million to fund its fleet expansion. The net proceeds of this offering were approximately $76.7 million. On the same date, the overallotment option was exercised resulting in the issuance of 675,000 additional common units, raising additional gross proceeds of $12.0 million and net proceeds of approximately $11.5 million. Pursuant to this offering, Navios Partners issued 105,613 additional general partnership units to its General Partner raising net proceeds of $1.8 million. Credit Facility On June 1, 2010, Navios Partners borrowed an additional $35.0 million under a new tranche to its existing credit facility (“Credit Facility”) to partially finance the acquisition of Navios Pollux. The amendment provides for, among other things, a new margin ranging from 1.45% to 1.80% depending on the applicable loan to value ratio. Long Term and Insured Cash Flow Navios Partners has entered into long-term time charter-out agreements for all 14 vessels with a remaining average term of 4.4 years, providing a stable base of revenue and distributable cash flow. Navios Partners has currently contracted out 100.0% for 2010, 92.9% for 2011 and 88.3% for 2012 generating revenues of approximately $139.8 million, $140.4 million and $135.5 million, respectively. The average contractual daily charter-out rate for the fleet is $28,633, $29,598 and $29,939 for 2010, 2011 and 2012, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2010 is $13,449. Navios Partners’ charter-out contracts have been insured by an AA+ rated European Union governmental agency. Detailed report at www.navios-mlp.com Navios Maritime Partners L.P. |
Navios Maritime Partners L.P. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2010