• 34% increase in fleet capacity YTD 2018
• Acquired four containerships YTD 2018 for $129.0 million
• 59% increase in sequential quarterly EBITDA
- $15.7 million EBITDA for Q1 2018 vs. $9.9 million for Q4 2017
• Raised $30.0 million equity in March 2018
• $119.0 million sale and lease back agreement extending maturities to 2023
• $61.0 million new term loan facilities
Moaco - May 8, 2018
Navios Maritime Containers Inc. ("Navios Containers " or "the Company") (N-OTC: NMCI), a growth vehicle dedicated to the container sector of the maritime industry, today reported financial results for the first quarter ended March 31, 2018.
HIGHLIGHTS - RECENT DEVELOPMENTS
In March 2018, the Company agreed to acquire one 2010-built 10,000 TEU containership from an unrelated third party for a purchase price of $50.25 million. This vessel is employed on time charter with a net daily charter rate of $26,663 until March 2019. The acquisition of the vessel will be financed with a $25.0 million term loan facility and the balance with available cash. The facility has an amortization profile of 9 years, matures in June 2023 and bears interest at LIBOR plus 300 bps per annum. The Company expects to take delivery of all three vessels within the second quarter of 2018. As previously announced, in March 2018 the Company took delivery of a 2010-built 4,250 TEU containership for a purchase price of $11.78 million. Navios Containers financed the acquisition of the vessel with cash on its balance sheet and $6.0 million of bank debt under one of its existing term loan facilities. The vessel has been chartered out at a daily net rate of $10,468 until May 2019.
New Sale and Leaseback Agreement - Refinancing Existing Credit Facilities - Extending Maturities to 2023
In March 2018 the Company executed a term sheet for an up to $119.0 million sale and leaseback agreement with a leading Chinese institution in order to refinance its credit facilities maturing in the fourth quarter of 2019, which had an outstanding balance of $92.4 million as of March 31, 2018. The term sheet provides for 60 monthly payments of $1.4 million each. In the definitive agreements, Navios Containers will have an obligation to purchase the vessels at the end of fifth year for $59.5 million. The refinancing (if completed) is expected to release approximately $26.6 million of cash, before fees and expenses, and reduce the debt service cost for the remainder of 2018 by approximately $22.7 million, providing the Company with an aggregate $49.3 million of incremental cash during 2018.
The transaction is expected to close within the second quarter of 2018. No assurances can be provided that the Company will successfully refinance these credit facilities or that the terms will be as described in this press release.
Assuming the closing of these vessel acquisitions, Navios Containers will own a fleet of 25 vessels totaling 119,538 TEU. The current average age of the fleet is 10.1 years (See Exhibit II). As of May 4, 2018 and assuming closing of these vessel acquisitions, Navios Containers has chartered-out 69.3% and 20.4% of available days for the remaining nine months of 2018 and for 2019, respectively, which are expected to generate $87.3 million and $45.8 million in revenue, respectively. The average expected daily charter-out rate for the fleet is $18,780 and $24,644 for the remaining nine months of 2018 and for 2019, respectively and the total expected available days for the remaining nine months of 2018 and for 2019, are 6,707 days and 9,125 days, respectively.
On March 13, 2018, Navios Containers closed a private placement of 5,454,546 shares at a subscription price of $5.50 per share, resulting in gross proceeds of $30.0 million. Navios Partners and Navios Maritime Holdings Inc. (“Navios Holdings”) invested $15.0 million at the subscription price and received 2,720,004 shares. Navios Partners and Navios Holdings also received warrants for 370,909 shares and 92,727 shares, respectively, with a five-year term.
As of March 31, 2018, Navios Partners and Navios Holdings hold 13,538,186 common shares representing 39.1% of the equity of Navios Containers. Both Navios Partners and Navios Holdings hold warrants for 2,353,011 shares and 588,253 shares with a five-year term, representing 6.8% and 1.7% of the total equity of Navios Containers, respectively.
Earnings Highlights EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitute for Navios Containers’ results calculated in accordance with U.S. GAAP. See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA of Navios Containers and a reconciliation of this measure to the most comparable measures calculated under U.S. GAAP.
About Navios Maritime Containers Inc.
Navios Maritime Containers Inc. is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit our website at www.navios-containers.com
Navios Maritime Containers Inc. press release