Securities filings by Navios Maritime Holdings revealed a trio of major banks behind the New York-listed shipowner's $550m refinancing package.
The documents also provide details of new loans from N Shipmanagement Acquisition (NSM), a private company affiliated with Navios Holdings chief executive Angeliki Frangou.
As TradeWinds reported on Tuesday, the bulker owner and parent company of the Navios Maritime group of companies announced that it secured new finance that helped it clear a bond payment hurdle it was facing in January.
The deals, whose potential for shareholder dilution sent Navios Holdings' stock price plummeting 26.5% to close at $3.52, involved $263m in payment-in-kind loans from Frangou, in addition to $287m in bank loans and sale-and-leaseback deals.
The deals allow the company to pay off $614m in notes payments that were scheduled to come due in January, in addition to a $50m redemption of notes that mature in August.
Filings with the US Securities & Exchange Commission after the announcement show that among the banks providing new cash was Hamburg Commercial Bank (HCOB).
The German bank, a major shipping lender, signed an agreement with Navios Holdings for a $105m loan backed by seven bulkers.
The debt comes with an interest rate of Libor plus a margin ranging from 3.25% to 4.5%.
Navios Holdings will pay eight quarterly instalments of $4.5m, with a $69m balloon payment at the end.
The rest of the bank lending came in the form of a $105m loan from French banks BNP Paribas and Credit Agricole.
Also backed by seven bulkers, the loan carries an interest rate of Libor plus a margin of between 2.85% and 3.75%.
Navios Holdings will pay four quarterly instalments of $6.5m, followed by eight instalments of $4.8m and a $41m balloon at the end.
The Pireaus-based company did not reveal financiers in the sale-and-leaseback transactions, but said the deals brought in $77m in cash to finance four bulkers. The deals have a seven-year term and an effective interest rate of 5.3%, with Navios Holdings obligated to repurchase the ships for a total of $12.9m at the end.
Frangou-linked NSM provided two loans, at a significantly higher interest rate.
A secured term loan of nearly $128m had two tranches, made up of $48.6m in previously agreed borrowings and $79.1 in new finance.
'Important step'
A second $135m loan replaces a prior facility. It is made up of $64.1m of previous borrowing in addition to $70.9m in new borrowings.
In the four-year loans, Navios will start paying a total $10m per quarter in the third quarter of 2023, with interest paid through issuing debentures before that.
The interest rate on the payment-in-kind loans starts at 18% until Navios Holdings pays off a series of notes due in August. After that, it will pay interest of 13.5% if it pays it back in cash and 16.5% if it pays in debentures, a form of debt security.
Fearnleys Securities analysts have blamed that higher interest rate on Navios Holdings' significant debt load.
Navios Holdings has issued a convertible debenture to NSM covering some payments of the loans and a $24m fee.
The debenture lasts five years at an interest rate of 4% paid at the end, unless NSM converts it to shares before then.
The final payment on the January bonds had placed a question mark over the future not only of Navios Holdings, but also spin-off Navios Maritime Partners.
The looming maturity, and Navios Partners' merger with sister company Navios Maritime Acquisition, had led to questions over whether the daughter company would have to come to the rescue of its parent.
Fearnleys' analysts, however, had expected a solution that wouldn't involve Navios Partners.
"We do nevertheless consider yesterday's transaction an important step towards a repricing of NMM as investors seemingly have priced in a potential dilutive event," they said, referring to Navios Partners by its ticker symbol.
Navios Partners shares, however, also fell on the New York Stock Exchange, posting a 5.9% slump on Tuesday that was in line with declines seen by other US-listed dry bulk stocks.
