Navios seals VLCC sale

Navios Maritime Acquisition Corp of Greece has sealed the sale of an ageing VLCC.

In a statement New York-listed Navios Acquisition said the 306,500-dwt Shinyo Spendor (built 1993) commanded $19.2m, which is slightly below what market sources said the unit fetched when TradeWinds shed light on the deal last month.

Today, a leading Wall Street equity analyst told investors that the sale of the Athens-based tanker owner’s eldest VLCC has laid the groundwork for fleet renewal.

In a briefing emailed to clients Benjamin Nolan of Stifel said proceeds from the transaction will provide Navios Acquisition, which trades under the ticker ‘NNA’, with more ammunition to pursue purchases down the road.

“Although NNA has the cash on hand and committed bank financing to complete the remaining $189m of contracted capital expenditures, we believe the additional $19.2m of cash provides some liquidity cushion and potential availability for future vessel acquisitions,” he said.

“Following the completion of the newbuilding program in early 2015, we estimate that the company should generate approximately $150m per year of cash flow available for debt repayment and dividends, but until that time we expect liquidity to remain tight.”

Navios Acquisition, which is led by chief executive Angeliki Frangou, oversees a fleet of 23 product tankers, four chemical carriers and nine VLCCs, according to an overview found in Wednesday’s announcement.