Navios Midstream Rejuvenates VLCC Fleet

New York-listed owner and operator of very large crude carriers Navios Maritime Midstream Partners has agreed to acquire the Nave Galactic, a 2009-built VLCC, from its sponsor Navios Maritime Acquisition Corporation for USD 44.5 million.

Navios Midstream also agreed to sell the 2001-built VLCC Shinyo Kannika to an unrelated party for USD 17 million.

As informed, Navios Acquisition’s charter rate backstop has been extended to the Nave Galactic. The vessel will substitute for the Shinyo Kannika under the Term Loan B.

The acquisition of the Nave Galactic, a nine-year old vessel, and the sale of the Shinyo Kannika, a 17-year old vessel, will reduce the average age of the company’s fleet by 10 pct.

“Navios Midstream will continue to refresh its fleet, thereby seeking to revitalize its cash flow generating ability,” the company said in a statement.

Navios Midstream’s fleet consists of six VLCCs, which have an average remaining term on their charters of approximately 3.8 years.

Navios Maritime Acquisition Corporation currently owns a 57 pct interest in Navios Midstream as well as a 2 pct interest through the general partner which the corporation owns and controls.