Navios Maritime Holdings Inc. Announces Buyback of
$131.3 Million Mandatorily Convertible Preferred Stock
PIRAEUS, Greece, Dec. 22, 2010 /PRNewswire via COMTEX/
Navios Holdings will pay $49.2 million in cash for $131.3 million of Preferred Stock, reflecting a 62.5% discount to the face amount. No dividend payment will be made on such stock for the fourth quarter of 2010, and it is anticipated that the purchase will be completed in 2010.
The holder of the Preferred Stock was entitled to receive an annual dividend of $2.6 million, payable quarterly, until such stock was converted into common stock. Upon maturity of such stock, in general, the holder would have received up to 13,132,000 shares of common stock.
Angeliki Frangou, Chairman and CEO of Navios Holdings stated, "We are pleased with this transaction, as it shows our continued ability to transact with our commercial partners in a manner accretive to our stakeholders. We were able to provide the seller needed liquidity by purchasing our equity at an effective price of $3.75 per share, which is about 27% below the current market price."
Ms. Frangou continued, "Through this transaction, we have reduced the number of shares outstanding as well as the $2.6 million annual dividend obligation on the Preferred Stock. We continue to have ample liquidity to progress our business plans."
Update on Number of Shares of Fully Diluted Common Stock Outstanding
After the repurchase of the Preferred Stock and also giving effect to the previously announced repurchase of certain convertible promissory notes, the total number of shares of outstanding common stock, on a fully diluted basis, has been reduced by 12.6% or 16.2 million shares.
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.
Navios Holdings may, from time to time, be required to offer certain owned Capesize and Panamax vessels to Navios Maritime Partners L.P. for purchase at fair market value according to the terms of the Omnibus Agreement.
For more information about Navios Holdings please visit its website: www.navios.com.
Navios Maritime Holdings Inc.