Navios Maritime Holdings to Offer Ship Mortgage Notes (USA)

Navios Maritime Holdings Inc. announced yesterday that it and Navios Maritime Finance (US) Inc., its wholly owned finance subsidiary intend to offer through a private placement, subject to market and other conditions, approximately $88 million of 8 7/8% first priority ship mortgage notes due 2017.

The Notes will be offered and sold in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and in offshore transactions to non-United States persons in reliance on Regulation S under the Securities Act.

The terms of the Notes are identical to the $400 million of notes issued in November 2009 (the “Existing Notes”) and will be secured by first priority ship mortgages on 17 drybulk vessels owned by certain subsidiary guarantors and certain other associated property and contract rights (the “Collateral”). On the issue date of the Notes, each of Navios Holdings’ direct and indirect subsidiaries that guarantee the Existing Notes will guarantee the Notes. The Notes and the Existing Notes will be treated as a single class for all purposes under the indenture (including, without limitation, waivers, amendments, redemptions and other offers to purchase) and the Notes will rank evenly with the Existing Notes. Because the Existing Notes are now unrestricted, the Notes will be issued under a different CUSIP number than the Existing Notes. Following the consummation of the exchange offer for the Notes, it is expected that the Notes and the Existing Notes will have the same CUSIP number.

The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the benefit of U.S. persons unless so registered except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws in other jurisdictions. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes and the related guarantees, nor shall there be any sale of the Notes and the related guarantees in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of the Notes and related guarantees will be made only by means of a private offering memorandum.

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Source: Navios Maritime Holdings, June 28, 2012