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Navios Acquisition agrees loan for up to $100m from Angeliki Frangou-linked entity

Two-year loan, at 11% interest, gives Frangou private company an option from August onwards to acquire equity in Navios Maritime…

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Nigel Lowryhttps://lloydslist.maritimeintelligence.informa.com/LL1136451/Navios%20Acquisition%20agrees%20loan%20for%20up%20to%20$100m%20from%20Angeliki%20Frangou-linked%20entity?utm_source=search&utm_medium=RSS&utm_term=&utm_campaign=search_rss13th April 20211:15 pm

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For Angeliki Frangou’s Navios, newfound resiliency opens door to fresh opportunities

New York-listed Navios Partners wants to grow in its three sectors while exploring moves into others

The blow of the Covid-19 pandemic taught many in shipping a lesson in building resiliency, but for Angeliki Frangou and her team at Greece’s Navios Maritime Partners, that lesson translated into something else.

Click the links below to read more:

• Amid questions over dividend, Frangou keeps focus on ‘total return’
• For Angeliki Frangou, inefficiency is the one certainty in shipping’s outlook
• Being present at Navios’ office throughout the pandemic: ‘You have to give comfort’
• Navios Partners corporate governance of the ‘highest standard’, Frangou says

It led the group, which had been organised into a complex web of spin-offs, to take a hard look at its structure, Frangou said at Navios’ Piraeaus headquarters.

“During the pandemic, we got the opportunity to really rethink our model and reimagine the company,” she said.

That touched off a series of moves that culminated in October’s $827m merger of tanker owner Navios Maritime Acquisition into Navios Partners, which until then had been a bulker and container ship owner.

Now Frangou, the chief executive of New York-listed Navios Partners, is looking at the road ahead with a mix of prudence and opportunism.

She told TradeWinds that Navios Partners wants to build the company in its three sectors, as well as look for opportunities to expand into different sectors.

Her message, expressed in conference calls with investors, at events at the recent Posidonia conference and in an interview, is that a large company with a diversified fleet allows for a more resilient balance sheet.

That puts Navios Partners’ 150-vessel outfit in a position to use the strength of one shipping sector to invest in another segment that is ripe for acquisitions, Frangou told TradeWinds.

Capturing opportunities

“You are able to really invest at different points,” she said. “You have a very strong container market, but you have a very weak tanker market — you’re able to really capture the opportunities.”

Contrast that with the experience of pure-play shipping companies, which are likely to have higher debt leverage in poorer markets, which is also the time when they need the financial firepower to take advantage of opportunities.

While some saw the merger between Navios Partners and Navios Acquisition as a rescue of the tanker firm, Frangou insisted that the group saw the opportunity to consolidate, having started by bringing together bulker and container ship vehicles.

Not everyone is a fan of diversified shipping companies. At the recent TradeWinds Shipowners Forum in Athens, StealthGas and Imperial Petroleum chief executive Harry Vafias offered a contrasting view, claiming investors still favour pure-play companies.

Navios Maritime Partners

150 vessels, including newbuildings, made up of:

• 54 bulkers

• 47 container ships

• 49 tankers

Navios Maritime Holdings

36 bulkers in its core fleet

367 vessels in the fleet of subsidiary Navios South American Logistics, made up of:

• 30 pushboats

• 329 barges

• 8 product tankers

But for an example of the advantages of diversification, Frangou cited the shipping sectors’ uneven fortunes since the pandemic; as one sector boomed, others were “brought to their knees”.

Capital markets have also matured since Navios Maritime Holdings first went public in 2004 — a time when investors were only familiar with tankers.

The group has not fully consolidated. Navios Holdings, which is also listed on the New York Stock Exchange and is Navios Partners’ largest shareholder, controls a fleet of 36 bulkers and a Uruguay-based logistics operation.

While there have been questions for months about whether the group’s two remaining New York-listed companies will ultimately be combined, Frangou would only say the Navios team is “looking at” Navios Holdings.

Navios made its first move into a new segment last month, jumping into the LR2 product tanker space by spending $250.8m to buy four newbuildings and outfit them with additional features , with charters to Chevron.

In what sector might Navios find the next opportunity?

“We look for rational projects,” Frangou said.

And she pointed out that Navios is at “every table” when it comes to finding those projects, which can come through relationships with banks, brokers and shipyards.

As an example, she pointed to the way Navios Partners build its presence in the container sector, through deals with banks that were looking to sell at a time of distress in the boxship market.

“We are looking, and we’re always looking at entry points that make sense,” she said.

Frangou told the TradeWinds Shipowners’ Forum that balance sheet resilience will also be a benefit when it comes to making investments to decarbonise.

Navios companies have set a goal to have net-zero carbon emissions by 2050.

In her office, Frangou said that while 10% of reaching that comes from optimising operations and another 20% is from technology to reduce fuel consumption, 70% of the puzzle depends on development of alternative fuels.

In the meantime, Navios Partners has been renewing its fleet, with a $1.3bn newbuilding programme that will replace existing vessels and improve fuel efficiency.

“We are doing all this while we are waiting to see what will be the final solution,” she said.

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Angeliki Frangou, Chairman and CEO of Navios says the Navios family continues to persevere regardless the pandemic’s negative effect

Navios Maritime Partners L.P., an international owner and operator of dry cargo vessels, reported its financial results for the second quarter and six month periods ended June 30, 2020.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, stated, “While the Pandemic greatly affected businesses, countries, and people all over the world, the Navios family continues to persevere. For the second quarter of 2020, Navios Partners reported $46.5 million in revenue and $14.3 million in Adjusted EBITDA. Navios Partners also declared a quarterly distribution of $0.05 cents per unit, representing an annual distribution of $0.20 cents per unit.”

Angeliki Frangou continued, “The pandemic’s negative effect on global economic activity can be seen in the charter rates. Year-to-date 2020, the capesize 5TC rate averaged around $9,700 per day, representing about 55% of the 2019 average of $18,000. Despite a difficult 2020, the IMF projects global GDP to increase by 5.4% in 2021 which we expect will positively affect the dry bulk trade.”

Liquidation of Navios Europe II Inc.

On June 29, 2020, the liquidation of Navios Europe II was completed and Navios Partners was allocated $2.7 million in cash and took delivery of two Ultra-Handymax and three Panamax dry bulk vessels together with assumption of loans and working capital.

Financing Arrangements

In June 2020, Navios Partners entered into a new credit facility with a commercial bank for a total amount of $29.5 million for the refinancing of five drybulk vessels that were acquired upon the liquidation of Navios Europe II. The credit facility has an amortization profile of 6.2 years, matures in June 2021 and bears interest at LIBOR plus 400 bps per annum up to December 2020 and 425 bps per annum subsequently.

In June 2020, Navios Partners entered into a new credit facility with a commercial bank for a total amount of $17.0 million for the refinancing of four containerships. The credit facility has an amortization profile of 8.0 years, matures in December 2023 and bears interest at LIBOR plus 350 bps per annum.

Cash Distribution

The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2020 of $0.05 per unit. The cash distribution is payable on August 13, 2020 to all unitholders of record as of August 10, 2020. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Long-Term Cash Flow

Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of approximately 2.0 years. Navios Partners has currently contracted out 95.0% of its available days for 2020, 41.5% for 2021 and 18.6% for 2022, including index-linked charters, expecting to generate revenues (excluding index-linked charters) of approximately $176.6 million, $93.0 million and $71.9 million, respectively. The average contracted daily charter-out rate for the fleet is $12,512, $22,529 and $28,632 for 2020, 2021 and 2022, respectively.

Three month periods ended June 30, 2020 and 2019

Time charter and voyage revenues for the three month period ended June 30, 2020 decreased by $ 1.2 million, or 2.5%, to $ 46.5 million, as compared to $ 47.7 million for the same period in 2019. The decrease in time charter and voyage revenues was mainly attributable to the decrease in the time charter equivalent rate, or TCE rate, to $ 11,202 per day for the three month period ended June 30, 2020, from $ 14,130 per day for the three month period ended June 30, 2019. The available days of the fleet increased to 4,029 days for the three month period ended June 30, 2020, as compared to 3,203 days for the three month period ended June 30, 2019.

EBITDA for the three month period ended June 30, 2020 was negatively affected by the accounting effect of a $ 6.8 million impairment loss related to three containerships. EBITDA for the three month period ended June 30, 2019 was negatively affected by the accounting effect of a $ 3.6 million revision of the estimated guarantee claim receivable. Excluding these items, Adjusted EBITDA decreased by $ 8.0 million to $ 14.3 million for the three month period ended June 30, 2020, as compared to $ 22.3 million for the same period in 2019. The decrease in Adjusted EBITDA was primarily due to: ( i) a $ 1.2 million decrease in revenue; (ii) a $ 5.4 million increase in vessel operating expenses, mainly due to the increased fleet; (iii) a $ 0.5 million increase in general and administrative fees; (iv) a $ 1.5 million increase in other expense; and (v) at $ 0. 9 million decrease in equity in net earnings of affiliated companies. The above decrease was partially mitigated by a: (i) $ 0.5 million decrease in time charter and travel expenses; and (ii) $ 0.9 million increase in other income.

The reserves for estimated maintenance and replacement capital expenditures for the three month periods ended June 30, 2020 and 2019 were $ 8.6 million and $ 7.3 million, respectively (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).

Navios Partners generated an operating surplus for the three month period ended June 30, 2020 of $ (1.1) million, as compared to $ 6.2 million for the three month period ended June 30, 2019. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).

Net Loss for the three month period ended June 30, 2020 was negatively affected by the accounting effect of a $ 6.8 million impairment loss related to three containerships. Net Loss for the three month period ended June 30, 2019 was negatively affected by the accounting effect of a: (i) $ 3.6 million revision of the estimated guarantee claim receivable; and (ii) $ 1.5 million write-off of deferred finance fees and discount related to the $ 73.5 million prepayments of the Term Loan B Facility in the second quarter of 2019. Excluding these items, Adjusted Net Loss for the three month period ended June 30, 2020 amounted to $ 7.8 million compared to $ 1.4 million loss for the three month period ended June 30, 2019. The increase in Adjusted Net Loss of $ 6.4 million was due to: (i) an $ 8.0 million decrease in Adjusted EBITDA ; (ii) a $ 0. 9 million increase in direct vessel expenses; (iii) a $ 0.4 million increase in depreciation and amortization expenses; and (iv) a $ 1.6 million decrease in interest income. The above increase was partially mitigated by a $ 4.5 million decrease in interest expense and finance cost, net.

Six month periods ended June 30, 2020 and 2019

Time charter and voyage revenues for the six month period ended June 30, 2020 decreased by $ 1.5 million, or 1.6%, to $ 93.0 million, as compared to $ 94.6 million for the same period in 2019. The decrease in time charter and voyage revenues was mainly attributable to the decrease in the TCE rate, to $ 10,957 per day for the six month period ended June 30, 2020, from $ 13,664 per day for the six month period ended June 30, 2019. The available days of the fleet increased to 8,126 days for the six month period ended June 30, 2020, as compared to 6,480 days for the six month period ended June 30, 2019, mainly due to the increase of the fleet.

EBITDA for the six month period ended June 30, 2020 was negatively affected by the accounting effect of a $ 6.9 million loss related to the other-than-temporary impairment recognized in the Navios Partners’ receivable from Navios Europe II and a $ 6.8 million impairment loss related to three containerships. EBITDA for the six month period ended June 30, 2019 was negatively affected by the accounting effect of a: (i) $ 7.3 million impairment loss on the sale of the Navios Galaxy I; and (ii) $ 3.6 million revision of the estimated guarantee claim receivable. Excluding these items, Adjusted EBITDA decreased by $ 11.6 million to $ 33.4 million for the six month period ended June 30, 2020, as compared to $ 45.0 million for the same period in 2019. The decrease in Adjusted EBITDA was primarily due to: ( i) a $ 1.5 million decrease in revenue; (ii) an $ 11.0 million increase in vessel operating expenses, mainly due to the increased fleet; (iii) a $ 0.6 million increase in general and administrative expenses; and (iv) a $ 1.8 million increase in other expense. The above decrease was partially mitigated by a: (i) $ 1.0 million decrease in time charter and travel expenses; (ii) $ 1.6 million increase in other income; and (iii) $ 0.8 million increase in equity in net earnings of affiliated companies.

The reserves for estimated maintenance and replacement capital expenditures for the six month periods ended June 30, 2020 and 2019 were $ 17.2 million and $ 14.7 million, respectively (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).

Navios Partners generated an operating surplus for the six month period ended June 30, 2020 of $ 3.3 million, as compared to $ 11.9 million for the six month period ended June 30, 2019. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see “Reconciliation of Non-GAAP Financial Measures” in Exhibit 3).

Net Loss for the six month period ended June 30, 2020 was negatively affected by the accounting effect of a $ 6.9 million loss related to the other-than-temporary impairment recognized in the Navios Partners’ receivable from Navios Europe II and a $ 6.8 million impairment loss related to three containerships. Net Loss for the six month period ended June 30, 2019 was negatively affected by the accounting effect of a: (i) $ 7.3 million impairment loss on the sale of the Navios Galaxy I; (ii) $ 3.6 million revision of the estimated guarantee claim receivable; and (iii) $ 1.5 million write-off of deferred finance fees and discount related to the $ 73.5 million prepayments of the Term Loan B Facility in the first half of 2019. Excluding these items, Adjusted Net Loss for the six month period ended June 30, 2020 amounted to $ 11. 7 million compared to $ 3.6 million for the six month period ended June 30, 2019. The increase in Adjusted Net Loss of $ 8.1 million was due to: (i) an $ 11.6 million decrease in adjusted EBITDA; (ii) a $ 1.8 million increase in direct vessel expenses; (iii) a $ 0.6 million increase in depreciation and amortization expense; and (iv) a $ 3.2 million decrease in interest income. The above decrease was partially mitigated by a $ 9.1 million decrease in interest expense and finance cost, net. Download PDF

Source: Navios Maritime Partners L.P.

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Privacy Overview

Among the 25 most powerful businesswomen in the world

Angeliki Frangou is Chairman and CEO of Navios Maritime Holdings Inc. In addition, she has been the Chairman and Chief Executive Officer of Navios Maritime Partners L.P. an affiliated limited partnership. She is also Chairman and Chief  Executive Officer of Navios Maritime Acquisition Corporation and the Chairman of the Board of Directors of Navios South American Logistics Inc. since its inception in December 2007.

Fortune magazine included Angeliki Frangou in the list with the 25 most powerful businesswomen in the world for 2014. In 2013, Frangou was mentioned on CNN’s International Leading Women

Ms. Angeliki Frangou was born in Kardamyla, Chios and she received a bachelor’s degree in mechanical engineering from Fairleigh Dickinson University and a master’s degree in the same field of expertise from Columbia University.

Her father, Captain Nickolas Frangos, started from Kardamyla in 1950 as ship captain. Angelica, stated at CNN’s tribute to her, that she feels that shipping runs in the family’s DNA. She followed her passion and in 1989, she left her job at Wall Street and decided to deal with shipping.

Previously, Ms. Frangou served as Chairman, Chief Executive Officer and President of International Shipping Enterprises Inc. From 1990 until August 2005, she was the Chief Executive Officer of Maritime Enterprises Management S.A. and its predecessor company, which specialized in the management of dry cargo vessels. From April 2004 to July 2005, Ms. Frangou served as a Board member of Eurobank Ergasias S.A. She is also the Chairman of IRF European Finance Investments Ltd., listed on the SFM of the London Stock Exchange.

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• Hellenic shipping news , Shipsale news

Frangou of Navios Maritime Holdings closes merger deal

• by Shipping Telegraph

Greek Angeliki Frangou, chairwoman and chief executive of Navios Maritime Holdings has sealed a definitive merger deal with N Logistics Holdings Corporation (NLHC), a company controlled by Navios Maritime Holdings.

Frangou, via its affiliate N Logistics Holdings Corporation, will acquire all of the outstanding shares of common stock of Navios Maritime Holdings, not already owned by NLHC for $2.28 per share in cash, without interest.

The agreement follows the offer made by an affiliate of Ms. Frangou on September 13 to acquire the common shares.

The $2.28 per share price represents a premium of approximately 43% to the closing price of Navios Maritime Holdings common stock on September 12, the last trading day before the company’s announcement of the September 13th offer.

The merger is expected to close no later than the first quarter of 2024. It is subject to the approval of the company’s stockholders to be held in due course, as well as other customary closing conditions.

Navios Maritime Holdings owns a controlling equity stake in Navios South American Logistics, one of the largest infrastructure and logistics companies in the Hidrovia region of South America, and an interest in Navios Maritime Partners, a US publicly listed shipping company which owns and operates dry cargo and tanker vessels.

The Greek shipowner Angeliki Frangou completed last year the $835.0 million sale of its 36-vessel drybulk fleet, in a major deal, and used the proceeds to pay down $784.2 million of debt, as reported by Shipping Telegraph earlier this year.

The transaction closed in two tranches. The first tranche, involving the sale of 15 vessels, was completed on July 29, 2022, and the second tranche, involving the sale of the remaining 21 vessels, was completed on September 8, 2022.

Now Navios Holdings is focused on growing Navios South American Logistics, as the company believes that the global macro conditions “support healthy growth in the Hidrovia region.”

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Angeliki Frangou

Chairwoman and director.

Angeliki Frangou: ‘I am optimistic … but I wish it were for different reasons’

At Posidonia dinner at National Gallery, Navios Maritime chief executive paints a positive picture for tonne-miles.

Navios Maritime group head Angeliki Frangou used a company dinner at Greece’s National Gallery to paint a positive picture of the road ahead for shipping.

The chief executive of New York-listed Navios Maritime Holdings and Navios Maritime Partners, which span the bulker, container ship and tanker sectors, said her optimism boils down to one thing: tonne-miles.

She acknowledged that the global geopolitical and macroeconomic backdrop is more uncertain amid a Covid-19 recovery that is still not complete in Asia and the fallout from the “tragic” war in Ukraine.

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Express. Home of the Daily and Sunday Express.

Desperate vladimir putin plunges 22 million russians into darkness in bitter -22c winter, moscow is to be plunged into darkness as putin ordered rolling blackouts amid freezing temperatures, according to reports..

Vladimir Putin has reportedly ordered rolling energy blackouts across Moscow as temperatures reach - 22C. The blackouts are said to cover the entire metropolitan area of Russia's which has a total population of around 22 million. The order issued states that electricity is "not to exceed 12 hours per day" with the blackouts in place from January 14 through March 31 2024, according to Ukraine commentator Igor Sushko.

Sushko posted on X: "The entire Moscow metropolitan area, population 22 million, will have rolling blackouts of electricity "not to exceed 12 hours per day" from January 14 through March 31, 2024. - announced by the fascist state."

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It comes after a heating main ruptured at the Klimovsk Specialised Ammunition Plant in Podolsk, about 30 miles south of central Moscow, on January 4. As a result, tens of thousands of Russians are said to be without heat in their homes in the Moscow region due to subzero temperatures.

According to a map published by a Russian Telegram channel and circulated on various social media platforms, the affected areas include cities such as Khimki, Balashikha, Lobnya, Lyubertsy, Podolsk, Chekhov, Naro-Fominsk, and Podolsk.

Residents in Moscow, specifically Balashikha, Elektrostal, Solnechnogorsk, Dmitrov, Domodedovo, Troitsk, Taldom, Orekhovo-Zuyevo, Krasnogorsk, Pushkino, Ramenskoye, Voskresensk, Losino-Petrovsky, and Selyatino, are also experiencing power outages, according to other Russian media reports.

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Power outages have been reported in St. Petersburg, Rostov, Volgograd, Voronezh, and Primorsky. Meanwhile, a huge fire tore through a large warehouse used by Russia ’s largest online retailer south of St Petersburg on Saturday morning.

The blaze covered an area of 70,000 square meters, with 50,000 square meters of the Wildberries warehouse collapsing, according to Russia ’s Emergency Situations Ministry. No casualties were reported.

Videos posted to social media appeared to show employees running down fire escapes and fleeing the scene. A video shot from a passenger jet flying nearby showed flames totally engulfing the warehouse, sending huge plumes of smoke into the sky.

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First refuelling for Russia’s Akademik Lomonosov floating NPP

!{Model.Description}

The FNPP includes two KLT-40S reactor units. In such reactors, nuclear fuel is not replaced in the same way as in standard NPPs – partial replacement of fuel once every 12-18 months. Instead, once every few years the entire reactor core is replaced with and a full load of fresh fuel.

The KLT-40S reactor cores have a number of advantages compared with standard NPPs. For the first time, a cassette core was used, which made it possible to increase the fuel cycle to 3-3.5 years before refuelling, and also reduce by one and a half times the fuel component in the cost of the electricity produced. The operating experience of the FNPP provided the basis for the design of the new series of nuclear icebreaker reactors (series 22220). Currently, three such icebreakers have been launched.

The Akademik Lomonosov was connected to the power grid in December 2019, and put into commercial operation in May 2020.

Electricity generation from the FNPP at the end of 2023 amounted to 194 GWh. The population of Pevek is just over 4,000 people. However, the plant can potentially provide electricity to a city with a population of up to 100,000. The FNPP solved two problems. Firstly, it replaced the retiring capacities of the Bilibino Nuclear Power Plant, which has been operating since 1974, as well as the Chaunskaya Thermal Power Plant, which is more than 70 years old. It also supplies power to the main mining enterprises located in western Chukotka. In September, a 490 km 110 kilovolt power transmission line was put into operation connecting Pevek and Bilibino.

Image courtesy of TVEL

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Russia Maps Show 25% of Moscow Without Power Amid Winter Freeze 'Emergency'

R ussian President Vladimir Putin has ordered the nationalization of an ammunition plant in Moscow after a mechanical failure caused tens of thousands of Muscovites to lose heat and water amid freezing temperatures beginning last week.

On January 4, a heating main burst at the Klimovsk Specialized Ammunition Plant in the town of Podolsk, which is around 30 miles south of central Moscow. Since then, tens of thousands of Russians are reported to have no heating in their homes in the Moscow region amid subzero temperatures.

Affected areas include the cities of Khimki, Balashikha, Lobnya, Lyubertsy, Podolsk, Chekhov, Naro-Fominsk, and Podolsk, a map published by a Russian Telegram channel and shared on other social media sites shows.

Other Russian media outlets reported that in Moscow, residents of Balashikha, Elektrostal, Solnechnogorsk, Dmitrov, Domodedovo, Troitsk, Taldom, Orekhovo-Zuyevo, Krasnogorsk, Pushkino, Ramenskoye, Voskresensk, Losino-Petrovsky, and Selyatino are also without power.

That means that in total, more than a quarter of Moscow's cities have been hit with power outages and a lack of heating.

Newsweek has contacted Russia's Foreign Ministry for comment via email.

Many residents have taken to publishing video appeals on social media to complain about their freezing conditions. In one clip, people living in Moscow say that they are left with no choice but to warm their homes with gas stoves, heaters, and "whatever else we can find." Others said they are lighting fires in the streets to keep warm.

Andrei Vorobyov, governor of the Moscow region, announced on Tuesday that Putin ordered the ammunition plant to be nationalized because two of its owners have been "located abroad." He didn't name the individuals.

"We received the right to take control of this boiler house within the framework of an emergency," Vorobiev said, adding that the plant's boiler room was managed "very poorly" and there was "virtually no qualified competent personnel."

Russia's Investigative Committee has opened a criminal case over Klimovsk Specialized Ammunition Plant not meeting safety requirements.

On Tuesday, the committee said that because of the incident, the deputy head of Podolsk's administration, the head of the plant's boiler house, and the general director of the ammunition plant had been detained.

Residents of Selyatino have described the situation as "some kind of struggle for survival," Russian Telegram channel ASTRA reported.

Power outages have also struck St. Petersburg, Rostov, Volgograd, Voronezh, Primorsky Territory, and Yekaterinburg.

Do you have a tip on a world news story that Newsweek should be covering? Do you have a question about the Russia-Ukraine war? Let us know via [email protected].

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