New York-listed Navios Maritime Holdings has revealed further fundraising efforts as it tries to tackle big debt maturities coming down the track.
The Greek bulker owner's Grimaud Ventures subsidiary has sold 6.4m shares in its parent to pocket $31m, a US Securities and Exchange Commission filing shows.
Some of this was used for a $20m redemption of Navios Holdings 11.25% notes due next year, reducing the outstanding amount to $165m.
Earlier in September, Navios Holdings had bought back another $20m of the bonds.
Marshall Islands-registered Grimaud had previously held 9.3m Navios Holdings shares that it received as part of settlement for a $70m loan from another Navios Group company, Navios South American Logistics (NSAL), to Navios Holdings.
At that time, Grimaud was a subsidiary of NSAL.
More stock disposals expected
Norwegian investment bank Fearnley Securities said: "We expect further disposals going forward to fuel [Navios Holdings'] deleveraging process in parallel with strong cash flow generation from its dry bulk fleet."
Grimaud's remaining equity interests are pledged as collateral under the 2022 notes.
Navios Holdings had $305m in outstanding 2022 bonds earlier this year, before a series of redemptions.
There is also $477m in 7.375% first priority mortgage notes coming due in January.
Navios Holdings reported net income of $24.9m for the three months ended 30 June, its second straight quarterly profit.
Welcome cash generation
The figure worked out at $1.80 per share, reversing a loss of $35.3m of $2.83 per share in the second quarter of 2020.
Cash flow from a resurgent dry market from its fleet of 38 bulkers — 25 owned — is proving very welcome to a company facing issues with a strained balance sheet.
Navios Holdings spinoff Navios Maritime Partners announced this month that it was taking over a third company led by principal Angeliki Frangou, tanker owner Navios Maritime Acquisition, in an all-stock merger that creates the largest US-listed tanker owner.
The deal included a bailout of $397.5m in Navios Acquisition ship mortgage bonds due in November.
And there has already been speculation that Navios Holdings — with its debt issues — could be next on the takeover list.