Navios Maritime Holdings, a NYSE-listed tanker and dry bulk vessel owner, has moved into container shipping, acquiring five vessels from debtors of HSH Nordbank.
The five ships, with capacity ranging from 2,007 to 3,498 20-foot-equivalent units, were acquired along with five product tankers, in a $130 million cash deal with the German bank, the world’s biggest ship financier.
The Greek shipowner has created a new joint venture, Navios JV, to take over the 10 vessels that have an average age of 5.5 years.
The cash payment is equal to 60 percent of the current fair market value of the ships plus $10 million. The deal will be funded by $10 million from Navios JV and $120 million of bank financing secured on the first mortgage on the ships.
The joint venture will also assume a subordinated participating loan of about $170 million.
“Working closely with HSH over the past year, we have devised a program whereby vessels can be removed from insolvency and placed into a stable situation,” said Angeliki Frangou, chairman and CEO of the Navios group.
“Navios is acquiring a significant fleet at historically low values with favorable economics,” Frangou said.