Navios Maritime to sell 36-vessel drybulk fleet to Navios Maritime Partners for $835M

• Navios Maritime (NYSE:NM) said Wednesday it will sell its 36-vessel drybulk fleet for ~$835M to Navios Maritime Partners (NMM).
• The deal includes cash and the assumption of $441.6M of bank liabilities, bareboat obligations and finance leasing obligations from NM.
• The deal is expected to reduce NM's liabilities by ~$784.2M.
• Any remaining proceeds will be used to cover transaction costs and for general corporate purposes.
• NM will record an estimated net book gain of ~$100M in Q3.
• After the deal closes, NM will have exited direct fleet ownership.
• NM plans to focus on growing its unit Navios South American Logistics, in which it owns a 63.8% controlling stake.
• NM also continues to hold a 10.3% stake in NMM.
• The deal is expected to close in 2 tranches. The first tranche, involving transfer of 15 vessels, will be completed on Jul. 29. The second tranche, involving remaining 21 vessels, will be completed in Q3.
• The 36-vessel drybulk fleet consists of 26 owned vessels and 10 chartered-in vessels with a total capacity of 3.9M dwt and an average age of 9.6 years.
• • Assuming Clarksons' 1-year TC rate (as of Jul. 22), the acquired vessels are expected to generate ~$164M EBITDA and $81.5M of estimated free cash in 2023 for NMM.