Navios Maritime Partners has cleared some major debt off its ledger using a combination of cash, bank debt and vessel sales.
The New York-listed partnership has fully repaid a $419m loan due this month.
"Through a combination of cash, commercial bank debt and sale-and-leaseback transactions, we materially reduced our cost of capital and strengthened our balance sheet,” chief executive Angeliki Frangou said in a statement on Tuesday.
The Term Loan B's outstanding balance was $418.5m as of 31 December 2018 and was repayable in September 2020, the company said.
Subsequent to the refinancing, Navios Partners has extended its debt maturities through to 2029, with the first repayment due in the fourth quarter of 2021.
Funding sources
Navios Partners funded the refinancing with a $301.3m loan from commercial banks.
The new loan has an average amortisation profile of 7.1 years and annual interest of Libor plus 290 basis points.
Some $49.5m of the refinancing was raised through sale and leaseback transactions with average duration of 9.4 years, an implied interest rate of 6.3% and no financial covenants.
The rest was paid off with $67.7m in cash on the balance sheet.
In July, the shipowner also revealed the sale of capesize and a panamax to two Japanese buyers, from whom the duo have been leased back, as TradeWinds has reported.
The 179,000-dwt Navios Ace (built 2011) was sold to Toyo Kaiun for $22.0m and the Navios Sagittarius (built 2006) was sold to Tachibanaya Co for $7.5m.
