Navios gets tenders for 91% of 8 7/8% notes, secures needed consents

By Susanna Moon

Chicago, Dec. 2 - Navios Maritime Holdings Inc. and wholly owned subsidiary Navios Maritime Finance (US) Inc. settled tenders for $442,213,000 principal amount, or about 90.62%, of their outstanding 8 7/8% first-priority ship mortgage notes due 2017.

After settlement on Nov. 29, $45,787,000 of the notes remains outstanding.

The total purchase price was $1,050.59 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 27, the consent date.

The issuers also received the needed consents to amend the notes and executed a supplemental indenture, according to a press release.

The companies are soliciting consents to eliminate or modify most of the restrictive covenants and events of default and release the liens for the benefit of the holders on the assets that secure the notes, as previously noted.

The total payment included a cash consent amount of $30.00 per $1,000 principal amount.

Those who tender their notes after the consent date will receive $1,020.59 per $1,000 of notes.

The offer will continue until midnight ET on Dec. 12. The offer began on Nov. 14.

The company also will pay accrued interest up to but excluding the payment date.

Tendered notes may no longer be withdrawn, as of the consent deadline.

Holders who tender their notes by the consent deadline will be required to consent to the proposed amendments to the note indenture.

The offer is conditioned on tenders for at least 66 2/3% of outstanding notes, which has now been satisfied, and completion of a new debt financing.

The companies priced a $650 million issue of first priority ship mortgage notes due Jan. 15, 2022 at par to yield 7 3/8% on Nov. 14.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-0858 collect) is the dealer manager and solicitation agent. D. F. King & Co., Inc. (800 769-4414 or 212 269-5550 collect) is the information agent and tender agent.

Navios is a Piraeus, Greece-based owner and operator of tanker vessels.

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