Navios settles early tenders for 97% of 8 5/8% ship mortgage notes

By Susanna Moon

Chicago, Nov. 14 - Navios Maritime Holdings Inc. and wholly owned subsidiary Navios Acquisition Finance (US) Inc. settled on Wednesday $488,513,000 principal amount, or about 96.74%, of 8 5/8% first-priority ship mortgage notes due 2017 tendered by 5 p.m. ET on Nov. 12, the consent date.

As a result, the companies received the needed consents to amend the notes and executed a supplemental indenture to the notes, according to a press release.

The companies are soliciting consents to eliminate or modify most of the restrictive covenants and events of default and to release the liens for the benefit of the holders on the assets that secure the notes.

After settlement, $16,487,000 of the notes remains outstanding.

The issuers also said they will redeem for cash on Dec. 13 any notes that remain outstanding after the offer at a redemption price of $1,043.13 per $1,000 principal amount plus accrued interest to but excluding the redemption date.

The total purchase price was $1,048.94 per $1,000 principal amount of notes tendered by the consent deadline.

The total payment included a cash consent amount of $30.00 per $1,000 principal amount.

Those who tender after the consent deadline will receive the tender offer payment of $1,018.94 per $1,000 principal amount.

The company also will pay accrued interest up to but excluding the payment date.

The offer will continue to run until midnight ET on Nov. 26. The offer began Oct. 29.

Tendered notes may no longer be withdrawn, as of the consent deadline.

The tender offer is conditioned on tenders of at least 66 2/3% of the notes as well as completion of a new debt financing.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-0858 collect) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 769-4414 or 212 269-5550 collect) is the information agent and tender agent.

Navios is a Piraeus, Greece-based owner and operator of tanker vessels.

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