Navios Containers Looking to Buy Up to Nine Boxships

Greek shipowner Navios Maritime Containers has agreed to acquire five containerships for a total purchase price of USD 246 million.

The company expects to take delivery of all five vessels in the third quarter of 2018.

Based on existing charters and the current rate environment, the five containerships are expected to generate around USD 35.3 million of aggregate EBITDA over the next twelve months, the company informed.

Additionally, Navios Containers has options for an additional four containerships for a purchase price of USD 36 million per vessel.

The company added that the acquisitions are subject to certain conditions, and there can be no assurances that these acquisitions will occur in whole or in part.

“In addition, we may be unable to secure debt financing for these acquisitions on terms satisfactory to us, or at all.”

Navios Containers agreed to purchase one 6,800 TEU containership, the Hyundai Hongkong, for USD 36 million from Navios Maritime Partners. The vessel is chartered out at a weighted average net daily charter rate of USD 28,523 until December 2023.

The shipowner is expected to finance the acquisition with additional borrowings of USD 15 million under a new loan from a commercial bank.

Navios Containers will have options to acquire four additional 6,800 TEU containerships from Navios Partners at a price of USD 36 million per containership. Each of the four vessels, namely the Hyundai Singapore, the Hyundai Busan, the Hyundai Shanghai and the Hyundai Tokyo, are sister ships to the Hyundai Hongkong and have identical time charter employment in place.

Furthermore, Navios Containers agreed to acquire four 10,000 TEU containerships for USD 210 million from a third party. The vessels are employed on time charters with a net daily rate of USD 26,663 that expire between April and June 2019.

The company is expected to finance these acquisitions with USD 125 million of new bank debt.

Following this acquisition, Navios Containers will control 30 vessels, totaling 166,338 TEU with an average age of 9.8 years.