Navios Maritime Partners refinanced a loan at slightly poorer terms but JP Morgan says the deal may pave the the way for the bulker and boxship owner to restart its dividend.
The Angeliki Frangou-controlled Navios said the $405m Term Loan B facility was priced today at an interest rate of 500 points over Libor with a three-and-a-half year term.
The loan will refinance the company's existing Term Loan B facility, which carried a rate of 425 basis points above Libor for a term of five year.
Morgan Stanley, JPMorgan Chase Bank, and Bank of America Merrill Lynch were the loan's lead arrangers.
JPMorgan equity analyst Noah Parquette said in a note that the new terms are "somewhat worse" than the loan it replaces, but the difference is not material, and the faster amortisation better matches depreciation of Navios' vessels.
Parquette, who has an "overweight" rating on Navios Maritime Partners, says Navios may be able to reinstate a dividend now that refinancing uncertainty is addressed.
Navios has signaled it may look to more acquisitions during the current cycle, so Parquette expects only a modest payout of $0.05 per quarter "should leave ample capital available for acquiring new vessels."
