Navios CEO Angeliki Frangou with Wolfgang Driese of DVB.

Navios casts net

Navios Maritime Partners of Greece could have as much as $130m in dry powder when it completes its latest follow-on equity offering, according to Justin Yagerman.

The Deutsche Bank analyst believes New York-listed Navios intends to use cash from the fundraiser to finance the acquisition of secondhand vessels from third parties but didn’t rule out the possibility of dropdowns.

In a note to clients, Yagerman said the company will likely fix the new additions on short to medium-term charters as ships with cash flow “are at a premium in today’s cash-strapped market”.

“Currently, five-year old cape, panamax and supramax prices are $33m, $18m and $18.5m according to Clarksons,” he added. “This implies Navios could purchase as many as seven ships depending on leverage and vessel class.”

Earlier in the day, Navios priced 4.5 million common units at $14.15 a piece. If all goes according to plan and underwriters indulge in options, the operator could walk away with a war chest of around $73.2m before fees are deducted from the total.

As we reported, Citigroup, Wells Fargo Securities, JP Morgan and RBC Capital Markets are serving as joint bookrunners in an offering co-managed by S Goldman Capital, RS Platou Markets, DVB Capital Markets, ABN AMRO and Clarkson Capital Markets.


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