Fresh off a strong second quarter in the dry bulk market, Navios Maritime Holdings continues to make progress in slashing away at imposing debt maturities looming in 2022.
Navios Holdings announced on Friday that it had redeemed $20m of its 11.25% senior secured notes due in August 2022.
When combined with a previous redemption announced 23 July, what had been $305m in outstanding bonds now has been reduced to $185m in remaining obligations.
This is alongside $477m in 7.375% first priority mortgage notes coming due in January.
The latest redemption comes at par plus accrued and unpaid interest to 13 September.
As TradeWinds has reported, Navios Holdings on Thursday reported net income of $24.9m for the three months ended 30 June, its second straight quarterly profit after eking out about a $200,000 surplus previously.
The figure worked out to $1.80 per share, reversing a loss of $35.3m of $2.83 per share in the second quarter of 2020.
Cash flow from a resurgent dry market from its fleet of 38 bulkers — 25 owned — is a boon to a company facing issues with a strained balance sheet.
“Although Navios Holdings is currently attempting to address these upcoming maturities and create additional liquidity to fund working capital requirements through the sale of assets and refinancing plans, there can be no assurance it will be successful in such attempts, or that any such attempts will be consummated on terms satisfactory to us, or at all,” the company said in Thursday's earnings statement.
Navios Holdings spinoff Navios Maritime Partners announced this month that it was taking over a third company led by principal Angeliki Frangou, tanker owner Navios Maritime Acquisition, in an all-stock merger that creates the largest US-listed tanker owner.
The deal included a bailout of $397.5m in Navios Acquisition ship mortgage bonds due in November, there already has been speculation that Navios Holdings — with its debt issues — could be next on the takeover list.
