Navios Partners: Acquisition of 36 vessels from Navios Maritime

The 36-vessel drybulk fleet consists of 26 owned vessels and 10 chartered-in vessels (all with purchase options) with a total capacity of 3.9 million dwt and an average age of 9.6 years. Assuming Clarksons’ 1-YR TC rate (as of July 22, 2022) and certain operating cost assumptions, the acquired vessels are expected to generate approximately $164.0 million of estimated EBITDA and $81.5 million of estimated free cash in 2023.

This acquisition builds upon Navios Partners’ strength in diversification and provides Navios Partners with:

• A young, known, en-bloc fleet of 36 vessels at an opportune time in the drybulk market
• Increased scale – post transaction the drybulk and total fleet will increase by 67% and 24%, respectively. NMM will have the third largest drybulk fleet, and the second largest fleet, of US publicly traded companies (based on number of vessels)
• Rebalanced segment exposure
• A migration path to a younger, more carbon efficient fleet supported by opportunistically selling older, less carbon efficient vessels
• Compelling financial returns (based upon the aforementioned 2023 financial estimates)
  • $835.0 million gross purchase price
  • $393.4 million estimated equity
    • EBITDA multiple: 5.1x (Purchase price/ estimated EBITDA)
    • Unlevered yield: 20% (estimated EBITDA/gross purchase price)
    • Free cash return on equity: 21% (estimated free cash/estimated equity)

Following the completion of the Transaction, Navios Partners will own and operate a fleet comprised of 90 drybulk vessels, 49 containerships and 49 tanker vessels, including 22 newbuilding vessels to be delivered through the first quarter of 2025.