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.
