Navios Maritime Holdings Inc. announces the entrance to a new

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GRAND CAYMAN, Cayman Islands, June 30, 2021 (GLOBAL) – Navios Maritime Holdings Inc. (“Navios Holdings” or “Borrower”) (NYSE: NM), a global maritime transport and logistics company, announced the following Events today:

Secured term line of credit

Navios Holdings entered into a long-term guaranteed term loan agreement with an entity (the “Lender”), affiliated with its chairman and chief executive officer, providing a loan of US $ 115.0 million (the “Loan”) for –

  1. an advance of US $ 75.3 million for the redemption of certain Navios Holdings Senior Secured Notes at a yield of 11.25% (“Secured Notes”) and for general corporate purposes (“Tranche B”); as well as
  2. refinance the existing debt of Navios Holdings to the Lender for $ 39.7 million (“Tranche A”).

The maturity of tranche B of the loan is February 28, 2023. The maturity of tranche A of the loan is November 30, 2024. Both tranches include planned amortization payments and interest rates at a rate of 10.5% per annum, payable quarterly. The borrower may choose to defer one scheduled amortization payment for 90 days and interest payments, in which case the applicable interest rate would be 12.0% per annum, calculated quarterly.

Loan security

The loan is secured by:

  1. Priority mortgage and related security (assignment of income and insurance, etc.) on the ship “Rainbow N”.
  2. Priority bond in the Securities Account containing $ 33.7 million in the aggregate principal amount of Navios Holdings ship mortgage bonds with an interest rate of 7.375% and maturity on 01/15/2022 (“NM Ship mortgage bonds”) and 40,587 Navios ordinary units Maritime Partners LP (NYSE: NMM).
  3. Pledge of the second order of shares in Navios South American Logistics Inc. (“Navios Logistics”) owned by the Borrower.
  4. Pledge of the second order of shares of two companies that have entered into sale and leaseback agreements.
  5. The second priority is the pledge of shares of five companies that own the rights to certain bareboat contracts.
  6. Second order pledge for 4,865,147 ordinary shares of Navios Maritime Acquisition Corp. (NYSE: NNA).
  7. The second priority is the pledge of partner interest on 2,522,306 ordinary shares of MMM.
  8. The second order collateral in the securities account containing US $ 118.1 million in the aggregate principal amount of the NM Ship Mortgage Bonds.
  9. Pledge of the second stage of interest with limited liability on Navios GP LLC
  10. Unsecured corporate guarantee from all subsidiaries of the Borrower (excluding Navios Logistics and its subsidiaries).

Ad hoc committee

Navios Holdings’ board of directors has formed a special committee of independent and disinterested directors to evaluate the loan. The Ad Hoc Committee, with the assistance of its independent financial and legal advisers, exclusively negotiated the terms of the loan.

Eighth supplementary agreement

The previously disclosed Eighth Supplementary Agreement was entered into by Navios Holdings on June 29, 2021. Among others, the Eighth Supplementary Agreement:

  • upon redemption of the $ 100.0 million principal of the Secured Notes, removes the obligation of Navios Holdings to make an offer to maturity for the Secured Notes in September 2021;
  • provides that future dividends paid in respect of Navios Logistics capital pledged as collateral for the Secured Notes may only be used to redeem or repurchase the Secured Notes;
  • authorizes the Lender to obtain a second right of pledge under the security of the shares (which secures the Secured Notes on the basis of the first pledge); as well as
  • declares that the Company may cancel the amounts due to Navios Logistics pursuant to a specific loan agreement dated April 25, 2019 (as amended).

About Navios Holdings

Navios Maritime Holdings Inc. (NYSE: NM) is a global maritime transport and logistics company specializing in the transport and transshipment of bulk cargo, including iron ore, coal and grain. For more information on Navios Holdings visit our website: www.navios.com

Forward-Looking Statements – Safe Harbor

This press release and our income statement contain and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Act of 1934, as amended) regarding future events, including our the ability to refinance our short-term maturities, expected cash flow generation, future contractual earnings, potential capital gains, our ability to take advantage of our market location and any market recovery, and Navios Holdings growth strategy and implementation measures. strategy; including pending ship acquisitions and further temporary charters. Words such as may, expects, intends, plans, believes, expects, hopes, estimates, and variations on such words and similar expressions are intended to indicate forward-looking statements. Such statements include comments on expected earnings and timing. These forward-looking statements are based on available information and expectations and assumptions that Navios Holdings believed to be reasonable at the time of these statements. While Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, it cannot be guaranteed that such expectations will prove to be true. These statements involve known and unknown risks and are based on a number of assumptions and estimates that by their nature are subject to significant uncertainties and unforeseen circumstances, many of which are beyond the control of Navios Holdings. Actual results could differ materially from those expressed or implied in such forward-looking statements. Factors that could cause significant differences in actual results include, but are not limited to, risks associated with: global and regional economic and political conditions, including the impact of the COVID-19 pandemic and efforts around the world to contain its spread, including the impact on the global economic activity; the demand for sea freight of the products we ship; the ability and willingness of charterers to fulfill their obligations to us; prevailing freight rates; shipyards involved in scrubber installation, dry docking and repair; change of crews of ships and availability of funding; Potential disruption to shipping routes due to accidents, disease, pandemics, political events, piracy or terrorist acts, including the impact of the COVID-19 pandemic and worldwide efforts to contain it; the uncertainties associated with global trade, including the prices of maritime goods and the persistent challenges related to maritime traffic and ton-miles; our ongoing ability to conclude long-term charters; our ability to make the most of our ships; the expected demand in the dry cargo sector in general and the demand for our Panamax, Capesize, Ultra Handymax and Handysize vessels in particular; aging of our fleet and, as a result, an increase in operating costs; loss of a client, charter or vessel; the financial condition of our clients; changes in the availability and cost of funding due to conditions in the banking market, capital markets and other factors; increased costs and expenses, including but not limited to: crew salaries, insurance, provisions, port costs, lube oil, bunkers, repairs, maintenance, and general and administrative costs; the expected value and our ability to comply with government regulations and standards of maritime self-regulatory organizations, as well as standard regulations imposed by our charterers, applicable to our business, general domestic and international political conditions; factors of competition in the market in which Navios Holdings operates; the value of our publicly traded subsidiaries; risks associated with operations outside the United States; and other factors listed from time to time in Navios Holdings filing with the SEC, including Forms 20-F and 6-K. Navios Holdings expressly disclaims any obligation or obligation to post any updates or corrections to any forward-looking statements contained herein to reflect any changes in Navios Holdings’ expectations regarding them or any change in the events, conditions or circumstances on which any statement. … Navios Holdings makes no forecasts or statements about the performance of its common stock or debt securities.

Contact:

Navios Maritime Holdings Inc.
+ 1-345-232-3067
+1,212,906,8643
investors@navios.com

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