Sep. 24, 2009 (PR Newswire) --
PIRAEUS, Greece, Sept. 24 /PRNewswire-FirstCall/ -- Navios Maritime Holdings Inc. ("Navios Holdings") (NYSE: NM) a global, vertically integrated seaborne shipping and logistics company, announced today that it has purchased the Navios Celestial, a 2009 built Ultra Handymax vessel, of 58,084 dwt, from a Japanese Shipyard.
The vessel's nominal purchase price of $36.2 million was funded with $31.2 million of cash, and $5.0 million in mandatorily convertible preferred stock. As a result, the vessel's effective purchase price was $33.5 million, using the $10.00 mandatory conversion price of the preferred stock. The terms of the mandatory convertible preferred stock are set forth below.
Angeliki Frangou, Chairman and CEO of Navios Holdings stated, "We are pleased with this new acquisition, as it reflects acceptance by a new shipyard of our equity and our continued ability to purchase modern vessels through novel financing techniques. Initially we will employ this vessel in the spot market. At an appropriate time we will seek to employ the vessel under period charter."
Fleet Profile
Navios Holdings currently controls a fleet of 60 vessels totaling 6.4 million dwt, of which 33 are owned and 27 are chartered-in under long-term charters. Navios Holdings operates 39 vessels (eight Capesize, 13 Panamax, 17 Ultra Handymax and one Handysize product tanker) totaling 3.3 million dwt. The average age of the operating fleet is 4.7 years.
Navios Holdings also has 21 newbuildings to be delivered. These vessels are expected to be delivered at various dates through 2013.
Terms of Mandatorily Convertible Preferred Stock
In general, the holders of the mandatorily convertible preferred stock will receive an annual dividend equal to 2%, or $0.1 million, payable quarterly, until such time as the preferred stock converts into common stock.
The preferred stock will mandatorily convert into common stock as follows: (1) following the third anniversary of such preferred stock's issuance, if the common stock closing price is at least $20.00 per share for 10 consecutive business days, then the outstanding preferred stock automatically converts at a conversion price of $14.00 per share of common stock; and (2) any outstanding mandatorily convertible preferred stock will mandatorily convert into common stock five years from the date of such issuance at a $10.00 price per share of common stock.
The holder shall have the right to convert the outstanding shares of such preferred stock into common stock prior to the scheduled maturity date at a price of $14.00 per share of common stock.
