Navios Maritime Holdings has taken back a swathe of outstanding notes in one swipe, but the bulker owner still has plenty of debt that is backed by its sister companies.
The Angeliki Frangou-led company redeemed $100m in 11.25% senior secured notes due in 2022, lowering the series by a third to $205m in a broader effort to address $896m in debt maturing on 1 March.
Three weeks ago, Frangou lent $115m to Navios Holdings to rebuy $75.3m of the notes and refinance another $39.7m of them in two tranches coming due in 2023 and 2024.
The $115m financing followed a prior $75m Frangou loan that was given to Navios Holdings in June to buy more time to pay off $305m notes due in 2022.
Navios Holdings has also closed on a new deal with bondholders that eliminates the company's obligation to make a maturity offer in September for the outstanding amount of the 2022 bonds.
Frangou frequently backs company loans through a complex orchestration of money dealings that involve other shipping companies in the Navios group.
Back this company with that one
She secured the $115m facility to Navios Holdings with a first-priority mortgage on the 80,000-dwt bulker Rainbow N (built 2011), $33.7m of 7.4% ship mortgage notes due in January and 40,587 shares of spin-off boxship and bulker owner Navios Maritime Partners.
Frangou has also committed to second-priority pledges that are backed by Navios Holdings' stake in subsidiary Navios South American Logistics and tanker spin-off Navios Maritime Acquisition.
She is also backing them with group companies that have entered into sale-and-leaseback agreements and bareboat charters.
A private Frangou company also loaned $100m to Navios Acquisition, which is trying to pay off its own looming debt through ship sales, for working capital earlier this year.
Frangou's complex way of doing business came under fire last week when MRMP-Managers criticised the shipowner for decisions she has made concerning Navios Partners.
The activist investor, which holds a 5.8% stake in the shipowner, sent a letter to Frangou questioning Navios Partners' decision to offer $200m worth of undervalued shares in an at-the-market offering while buying $185m worth of ships at market value.
MRMP argued that the asset value of its 95-ship fleet is probably worth much more than its market capitalisation, backed by shares that are undervalued by at least 50%.
