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The Navios Antares, a 169,059 dwt Capesize vessel, was delivered to Navios Holdings' owned fleet on January 20, 2010 from a South Korean Shipyard. Agreement to Acquire New Capesize Vessel Navios Holdings agreed to acquire a new build Capesize vessel of 180,000 dwt, under construction with a South Korean Shipyard. The vessel is scheduled for delivery in the second quarter of 2011 and is secured by a 12-year charter to a quality counter party for $27,431 (net) daily rate. It is anticipated that this charter will generate annual EBITDA of $8.1 million and cumulative EBITDA of $92.6 million. The acquisition price for the vessel is nominally $55.5 million, payable as follows: • $52.5 million in cash; and • $3.0 million payable in the form of Convertible Preferred Stock. The terms of the convertible preferred stock are set forth below. Term of Convertible Preferred Stock In general, the preferred shareholders will receive an annual dividend equal to 2% of the $3.0 million value prescribed per preferred share ($0.06 million in total) until such time as the preferred shares convert into common stock. The convertible preferred stock will mandatorily convert into common stock as follows: 30% of the shares shall convert in 5 years from the date of issuance and the 70% balance shall convert in ten years from the date of issuance at a price per share of common stock of not less than $10.00. The holder shall have the right to convert the preferred shares into common prior to the scheduled maturity date at a price of $14.00 per share. Consequently, the total common shares to be issued ranges from 0.21 million to 0.30 million. Time Charter Coverage As of February 2nd 2010, Navios Holdings had contracted 89.4%, 65.7%, and 57.0% of its available days on a charter-out basis for 2010, 2011 and 2012, respectively. Navios Holdings has extended its long-term fleet employment by entering into agreements to charter-out vessels for periods ranging from one to 12 years. About Navios Maritime Holdings Inc. Navios Maritime Holdings Inc. is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information please visit our website: www.navios.com. Navios Holdings may, from time to time, be required to offer certain owned Capesize and Panamax vessels to Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM) for purchase at fair market value according to the terms of the Omnibus Agreement. For more information please visit its website: www.navios-mlp.com. Navios Maritime Holdings Inc. |
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