Navios Maritime Partners revealed more than $199m in new financing deals as the New York-listed shipowner reported a slump in profits that came in just under analyst expectations.
The Angeliki Frangou-led bulker owner said that it struck more than $174m agreements with four banks to refinance loans covering eight capesize bulkers, a panamax and three ultramaxes.
The loans, which were signed in december but are yet to be finalised, carry an interest rate of Libor plus 270 basis points. The facilities amortise over 15 to 18 years.
Navios Partners also said it signed a $25m sale-and-leaseback deal for the 180,000-dwt Navios Fantastiks (built 2005) and Navios Beaufiks (built 2004).
The Navios Maritime Holdings spinoff did not identify the financial buyer, other than to say that it was an unidentified third party.
The shipowner said that the leasebacks, involving a bareboat charter at $5,200 per day per vessel, last an average of 5.4 years and imply an interest rate of 7.6%. The deal includes purchase options starting in year three.
The announcement came as Navios Partners reported an adjusted profit of $5.1m for the final quarter of 2018, down from the $10.3m it recorded a year ago.
The company, which is also involved in the containership sector through a major stake in Navios Maritime Containers, reported adjusted earnings per share came in at $0.03, a penny lower than the consensus Wall Street estimate.
JP Morgan analyst Noah Parquette responded to the report by reiterating his bullish stance on its shares.
"We believe the company has substantial positives that differentiate it from other dry bulk companies, such as low leverage, relatively high charter coverage, low cost basis, and diversification into the containership sector (through long-term charters)," he wrote.
"We believe potential upside is attractive relative to the rest of our coverage universe."
Revenue fell to $57.5m in the fourth quarter, compared to $59.2m to the same period of last year, despite a rise in the number of available fleet days and operating days. The company attributed that to a more than $2,000 per day drop in time-charter rates.
Bottom-line net income came in at $517,000 in the fourth quarter, reversing a $22.8m loss from the same period of last year, when the company recorded several gains and finance charges.
Fleet utilisation in the last three months of 2018 dropped slightly to 98.8% from 99.4%.
Adjusted Ebitda also fell, from $37.1m to $30.9m over the same period.
Meanwhile, Navios Partners said it recorded a book loss of $6.5m from the sale of the 73,900-dwt Navios Felicity (built 1997) and the 70,100-dwt Navios Libra II (built 1995).
