Navios Maritime Partners L.P. Announces Agreement to Acquire Five Drybulk Vessels
Navios Maritime Partners L.P., an international owner and operator of dry cargo vessels, announced today that it has entered into agreements to acquire five drybulk vessels (four Capesize and one Kamsarmax) for a total consideration of approximately $182.3 million.
Two vessels are new building vessels, a Capesize vessel, which is bareboat charter-in and is expected to be delivered in the second half of 2022, and a Kamsarmax vessel which is expected to be delivered in the first half of 2023.
Three Capesize vessels, the Navios Azimuth, the Navios Ray and the Navios Bonavis, are being acquired from Navios Maritime Holdings Inc. for an aggregate purchase price of approximately $88.0 million and are expected to be delivered by July 2021. The acquisition of these vessels was approved by the Conflicts Committee of the Board of Directors of Navios Partners.
Following the above agreements, Navios Partners’ fleet (basis fully delivered fleet) consists of 94 vessels, of which 56 are dry bulk vessels and 38 are containerships. The fleet has total capacity of 9.0 million dwt.
Seanergy Maritime Holdings Corp. Announces Agreement to Acquire its 16th Capesize Vessel and New Time Charter
Seanergy Maritime Holdings Corp. announced that it has entered into a definitive agreement with an unaffiliated third party to purchase a Capesize vessel (the “Vessel”).
The Vessel was built in 2012 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 181,000 deadweight tons (“dwt”) and will be renamed M/V Worldship. The Worldship is expected to be delivered within the third quarter of 2021, subject to the satisfaction of certain customary closing conditions. Following her delivery, Seanergy’s fleet will increase to 16 Capesize vessels with an aggregate cargo capacity of approximately 2,800,000 dwt.
The Vessel is fitted with a scrubber and a ballast water treatment system, while the special survey will be completed by the current owner prior to the delivery and, therefore, the Company does not anticipate incurring any off-hire or capital expenditure for this Vessel at least for the next two years.
The purchase price of $33.7 million is expected to be funded with cash on hand and debt financing.
In addition, taking advantage of the current strong market conditions, Seanergy has fixed one of its Capesize vessels, the M/V Patriotship, at $31,000 per day for a period employment of 12-18 months with a major European cargo operator. The contract is expected to commence upon the Patriotship’s upcoming delivery to the Company, which is anticipated in the beginning of June 2021.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“I am very pleased to announce another timely acquisition of a high-quality Capesize vessel built by a renowned shipyard in Japan. The addition of the M/V Worldship to our fleet will further enhance our operating leverage as a leading pure-play Capesize company.
This should be a highly accretive transaction for our shareholders as it will be funded by Seanergy’s strong liquidity, consisting of cash on hand and loan facilities at competitive terms.
Our fleet is currently operating in a decade-high freight environment, where the Capesize forward freight contracts (“FFA”) for the second half of 2021 exceed $30,000 per day. Based on the anticipated delivery of the Vessel in the mid of the third quarter of 2021, the incremental gross revenue from this acquisition may exceed $4 million for the remainder of the year.”
EuroDry Ltd. Reports Results for the Quarter Ended March 31, 2021 and Announces Agreement to Acquire M/V Blessed Luck, a 2004-Japanese Built Panamax Bulker
EuroDry Ltd., an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced its results for the three-month period ended March 31, 2021 and an agreement to acquire M/V Blessed Luck, a 76,704 dwt drybulk vessel built in Japan.
First Quarter 2021 Highlights:
Total net revenues of $8.6 million; net income of $0.9 million; net income attributable to common shareholders (after a $0.3 million dividend on Series B Preferred Shares and a $0.1 million preferred deemed dividend arising out of the net redemption of approximately $3 million of Series B Preferred Shares in the first quarter of 2021) of $0.4 million or $0.19 earnings per share basic and diluted. Adjusted net income attributable to common shareholders1 for the period was $1.3 million or $0.55 earnings per share basic and diluted.
Adjusted EBITDA1 was $4.0 million.
An average of 7.0 vessels were owned and operated during the first quarter of 2021 earning an average time charter equivalent rate of $14,924 per day.
The Company declared a dividend of $0.3 million on its Series B Preferred Shares. The dividend will be paid in cash.
1Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.
M/V Blessed Luck Acquisition
The Company also announced that it has agreed to acquire M/V Blessed Luck, a 76,704 dwt drybulk vessel built in 2004 in Japan, for $12.12 million. The vessel is majority owned by a third party and has been managed by Eurobulk Ltd., also the manager of three of the Company’s vessels. The vessel is expected to be delivered to the Company within May 2021. The acquisition will be financed partly by a short term sellers’ credit of $5 million and an one year bridge loan of $6 million provided by an entity affiliated with the Company’s Chief Executive Officer with the remaining funds coming from the Company; both the sellers’ credit and short term loan carry an annual interest of 8%. In parallel, the Company is in the process of arranging a bank loan with the acquired vessel as collateral, expected to be finalized within approximately three months, which will provide sufficient funds to repay the sellers’ credit and, possibly, part of the bridge loan. At the same time, the Company entered into a charter agreement for the vessel for a period between a minimum of 11 months and a maximum of 13 months at a rate of $19,500/day which will commence upon delivery of the vessel and contribute about $4 million of EBITDA during the minimum period of the charter.
Aristides Pittas, Chairman and CEO of EuroDry commented:“In stark contrast to a year ago, it has been a very positive 2021 so far with drybulk rates rebounding significantly as a result of solid trade growth and limited supply growth. The latter, especially, is constrained by short and medium term factors: in the short term, by inefficiencies in the vessel-port transportation system that resulted from COVID-19 effects and required protocols and, in the medium term, by the lowest orderbook in the last 20+ years. We believe that the market is likely to remain strong for the next couple of years provided that demand for transportation of drybulk cargoes – which is generally linked to economic activity – will maintain at least a historically average growth rate; it is noteworthy that the IMF, amongst others, predicts that economic activity will rebound above historical average levels as the world recovers from the COVID-19 pandemic.
In such a positive environment, our main strategy is to try to expand our fleet in a risk efficient way despite our limited funds available for investment. Thus, we acquired M/V Blessed Luck, a 2004-built vessel, with a combination of seller and affiliate bridge loans to complement our cluster of medium age Japanese-built Panamax-size vessels alongside our cluster of own-built newbuildings. The acquisition of M/V Blessed Luck will increase our fleet to eight units and is expected to contribute to a proportional increase in our EBITDA. At the present market rate levels, we are to accumulate funds that will provide us with several investment or expansion options or shareholder reward models. We, further, believe that the strong drybulk markets enhance the value of our public listing as a consolidation platform and we continuously investigate opportunities to take advantage of it.”
Tasos Aslidis, Chief Financial Officer of EuroDry commented:“Our net revenues for the first quarter of 2021 were higher by 69.3% as compared to the first quarter of 2020. This was the result of higher average charter rates by 89.3% earned during the quarter as compared to the first quarter of 2020 and 38.7% higher when compared to the fourth quarter of 2020.
Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased by approximately 8.5% during the first quarter of 2021 compared to the same quarter of last year. This increase is mainly due to increased crewing costs in 2021 compared to 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions.
Adjusted EBITDA during the first quarter of 2021 was $4.0 million compared to $0.6 million achieved for the first quarter of last year. As of March 31, 2021, our outstanding debt (excluding the unamortized loan fees) was $56.0 million versus restricted and unrestricted cash of approximately $6.2 million.”
First Quarter 2021 Results:For the first quarter of 2021, the Company reported total net revenues of $8.6 million representing a 69.3% increase over total net revenues of $5.1 million during the first quarter of 2020, which was the result of the higher time charter rates our vessels earned during the first quarter of 2021. The Company reported net income for the period of $0.9 million and net income attributable to common shareholders of $0.4 million, as compared to a net loss and a net loss attributable to common shareholders of $2.3 million and $2.6 million, respectively, for the same period of 2020. For the first quarter of 2021, a gain on bunkers resulted in positive voyage expenses of $0.3 million for the period as compared to voyage expenses of $0.4 million in the same period of 2020. Depreciation expenses for the first quarter of 2021 were $1.7 million compared to $1.6 million for the same period of 2020. Vessel operating expenses were $3.1 million for the first quarter of 2021 compared to $2.8 million in the same period of 2020, mainly due to increased crewing costs in the first quarter of 2021 compared to the corresponding period in 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions. Management fees and general and administrative expenses remained unchanged at $0.5 million and $0.6 million, respectively, for the first quarter of 2021 as compared to the same period of last year.
Interest and other financing costs for the first quarter of 2021 amounted to $0.6 million, slightly decreased as compared to $0.7 million for the same period of 2020. Interest during the first quarter of 2021 was lower due to lower average debt during the period and the decreased Libor rates of our loans during the period as compared to the same period of last year. For the three months ended March 31, 2021, the Company recognized a $1.6 million loss on derivatives, comprised of $0.7 million realized loss and $1.1 million unrealized loss of forward freight agreements and $0.2 million gain on three interest rate swaps as compared to a loss on interest rate swaps of $0.3 million for the same period of 2020.
On average, 7.0 vessels were owned and operated during the first quarter of 2021 earning an average time charter equivalent rate of $14,924 per day compared to 7.0 vessels in the same period of 2020 earning on average $7,885 per day.
Adjusted EBITDA for the first quarter of 2021 was $4.0 million compared to $0.6 million achieved during the first quarter of 2020.
Basic and diluted earnings per share attributable to common shareholders for the first quarter of 2021 was $0.19 calculated on 2,291,471 basic and 2,320,577 diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $1.17 for the first quarter of 2020, calculated on 2,267,375 basic and diluted weighted average number of shares outstanding.
Excluding the effect on the earnings attributable to common shareholders for the quarter of the unrealized loss on derivatives, the adjusted earnings attributable to common shareholders for the quarter ended March 31, 2021 would have been $0.55 per share basic and diluted, compared to an adjusted loss of $0.91 per share basic and diluted for the quarter ended March 31, 2020, after excluding the effect of the unrealized loss on derivatives and the loss on write-down of inventory. Usually, security analysts do not include the above items in their published estimates of earnings per share.
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Xenia strengthens team by acquiring Status Credit
Credit insurance and surety specialist Xenia Broking Group (‘Xenia’) announces it has entered into an agreement to acquire the trade credit business of Status Credit Insurance Brokers Limited (“Status”), a well-regarded specialist trade credit broking business based in East Sussex.
The transaction will complete in April 2021, following which Xenia will integrate Status’s trade credit business with its regulated entity Credit Risk Solutions Limited (“CRS”).
Tim Coles, CEO of Xenia, said: “This is a complementary acquisition for us, one which extends and improves our client reach and service offering. Lance Attwell, founder and Managing Director of Status has built over many years, a business which has an enviable reputation for client engagement, service quality and client retention. The fact that a business of the quality of Status has agreed that Xenia is the right home for its clients is supportive of our strategy to build a leading trade credit broking business, one focused on delivering outstanding outcomes for our growing client base.
We are delighted to welcome Lance and his team into the group and very much look forward to, together, exceeding our clients’ expectations for service and results.”
Lance Attwell, founder of Status, added: “Xenia is a natural home for Status. We have common values and a shared passion for service and the success of our clients. Xenia is an ambitious company with challenging yet achievable plans, plans which are founded on delivering world class outcomes and outstanding customer service.”
ARAG acquired DAS’ operations in Canada and continues to pursue its international expansion strategy
The German ARAG Group, a global leader in legal expenses insurance (LEI) and currently active in 19 countries, acquired DAS Legal Protection Inc. in Canada which Is part of the Munich Re / ERGO Group. Founded in 2010, the Toronto-based company is a leading Canadian managing general agent specializing in legal expense insurance with premiums under management of around 19.5 million euros in 2019. The product portfolio comprises legal expenses insurance products for families, landlords, condominiums / stratas and small businesses in Canada. The current Canadian staff of DAS will be retained.
“With this acquisition, we are striving to expand and strengthen our existing operations in Canada. The Canadian LEI market offers promising opportunities with sound growth potential. Thus, ARAG advances its successful international expansion strategy,” explains Dr. Renko Dirksen, Speaker of the Management Board of ARAG SE. “With DAS’ sales network and experienced team, we are complementing our current Canadian activities. It will also allow us to leverage synergies, accelerate growth as well as support economies of scale and scope”, adds Dr. Renko Dirksen. ARAG recently commenced business operations in Australia and acquired DAS’ operations in the Republic of Ireland.The ARAG Group officially launched its Canadian subsidiary, ARAG Services Corporation, in 2016. The Toronto-based company operates as managing general agent offering legal expenses insurance products underwritten by HDI Global Specialty SE. ARAG Services Corporation has an innovative and comprehensive range of legal expense products and legal services for brokers, underwriting agents and insurers in Canada, targeting businesses, families and landlords alike.“We will strengthen our presence while keeping up our top-notch service to our customers as well as our excellent relationships with our business partners”, states Barbara Haynes, CEO of ARAG Canada. “After the successful integration of the two teams, we look forward to improving our operations through technology and digital tools – and continuing to develop best-in-class legal expenses insurance products and services, building on the international skills of the ARAG Group”, explains Barbara Haynes.Both parties agreed to not disclose the purchase price.
Seanergy Maritime Holdings Corp. to Acquire Two Additional Capesize Vessels
Seanergy Maritime Holdings Corp. announced that it has entered into agreements with unaffiliated third parties to purchase two Capesize vessels. Following their delivery, the size of the Company’s fleet will increase to 14 Capesize vessels with an aggregate cargo capacity of approximately 2.5 million dwt.
The first vessel was built in 2013 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 176,000 deadweight tons (“dwt”) and shall be renamed M/V Flagship. The vessel is expected to be delivered to the Company by the end of April 2021, subject to the satisfaction of certain customary closing conditions.
The second vessel was built in 2010 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 182,000 dwt and shall be renamed M/V Patriotship. The vessel is expected to be delivered to the Company by the end of May 2021, subject to the satisfaction of certain customary closing conditions.
The special survey and ballast water treatment system installation for both vessels were completed recently by the current owners and therefore the Company does not anticipate incurring significant capital expenditure for these vessels at least for the next two years. Moreover, M/V Patriotship is fitted with an exhaust gas cleaning system (scrubber).
The aggregate purchase price for the two vessels is approximately $55 million and is expected to be funded with cash on hand. The Company is also in discussions with leading financial institutions to finance part of the acquisition cost at competitive financing terms.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are very pleased to announce the acquisition of two high-quality Capesize vessels built at reputable shipyards in Japan. The M/Vs Flagship and Patriotship, both delivering promptly and in a rapidly increasing market environment, represent great added value for Seanergy, the only U.S. listed pure-play Capesize company. Following the delivery of these two vessels and a third acquisition announced last month, our fleet’s cargo carrying capacity will increase by 28% as compared to the beginning of the year.
The average of the Baltic Capesize Index for the current quarter stands at substantially higher levels than for the same period in recent years, while the Capesize forward freight contracts (“FFA”) for the second half of 2021 are trading at $23,000 per day. Based on current FFA rates, the incremental net revenue from all three acquisitions announced so far this year may exceed $15 million for the remainder of the year, assuming the expected deliveries for the vessels. Seanergy is ideally positioned to capture the substantial improvement of the market as all the vessels of our fleet will be deployed in the spot market or on index-linked time charters.
Since the beginning of 2021 we have concluded or have agreed to significant accretive transactions and we will continue to actively pursue similar deals, aiming to create substantial shareholder value in the coming years.”
Company Fleet upon Vessels’ delivery:
BNP Paribas is looking to acquire up to 100% of Exane
After a successful 17-year partnership, BNP Paribas is looking to acquire up to 100% of Exane*, raising its stake from the 50% currently held.
The contemplated transaction would further strengthen and widen the range of cash equity and derivatives services BNP Paribas can offer to institutional investors and corporates globally.
This, together with the migration of Deutsche Bank’s Global Prime Finance and Electronic Equities business to BNP Paribas, will position the bank as a leading provider in Global Equities.
“The long-standing and effective partnership with Exane provided our clients with superior access to the equity capital markets. We look forward to further enhancing our equities franchise and most actively supporting our clients as we join forces in an ever more integrated manner,” said Yann Gérardin, Deputy Chief Operating Officer and Head of Corporate and Institutional Banking, BNP Paribas.
“We’ve worked closely with Exane for 17 years, supporting its development into a top-ranked Research and leading European equities business. This is a natural evolution following our successful partnership, working together to deliver even deeper relationships with our clients. We really look forward to further strengthening the relationship with Exane in equities and derivatives”, said Olivier Osty, Head of Global Markets, BNP Paribas.
“This is an exciting new phase. Our long-term partnership with BNP Paribas has enabled us to invest in great people and technology to build a top European equities franchise. Our teams look forward to working even more closely with our BNP Paribas colleagues across Prime Services, Global Electronic Trading, Equity Derivatives and Equity Capital Markets to better service clients across the globe,” said Nicolas Chanut, CEO of Exane.
Note:
* The contemplated transaction will be subject to relevant shareholders, regulatory and competition approvals, and is also subject to the review of relevant works councils.
Seanergy Maritime Holdings Corp. Announces Agreement to Acquire an Additional Capesize Vessel
Seanergy Maritime Holdings Corp. announced that it has entered into a definitive agreement with an unaffiliated third party to purchase a Capesize vessel (the “Vessel”).
The Vessel was built in 2006 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 177,000 deadweight tons (“dwt”) and shall be renamed M/V Tradership. The Vessel is expected to be delivered towards the end of the first quarter or early in the second quarter of 2021, subject to the satisfaction of certain customary closing conditions. Following her delivery, the size of the Company’s fleet will increase to 12 Capesize vessels with an aggregate cargo capacity of approximately 2,103,042 dwt.
The special survey and ballast water system installation for the Vessel were completed recently by the current owner and therefore the Company does not anticipate incurring any off-hire or significant capital expenditure for this Vessel at least for the next two years. The gross purchase price of $17 million is expected to be funded with cash on hand.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to announce another timely acquisition of a high quality Capesize vessel built by a first-class shipyard in Japan. The addition of the M/V Tradership to our fleet is further increasing our operating leverage as a leading pure-play Capesize company.
The Vessel is expected to be delivered to us promptly, during a greatly improved Capesize market. The average of the 5 time-charter routes of the Baltic Capesize is currently about 60% higher than the same period average for the last 5 years, while the Capesize forward freight contracts (“FFA”) for the second half of 2021 are trading at above $19,400 per day. Based on these FFA rates, the incremental net revenue from this acquisition may exceed $5 million for the remainder of the year assuming delivery at the end of the first quarter of 2021.
Seanergy is well placed to benefit from the substantial improvement of the market with its entire fleet currently employed under spot charters or long-term index-linked time charters, directly tied to the Capesize index.
We strongly believe that our segment represents the best fundamentals in the dry bulk industry. We will continue to actively pursue accretive growth transactions aiming to improve shareholder returns for the years to come.”
Company Fleet upon Vessel’s delivery:
Star Bulk Agrees to Acquire Τhree Dry Bulk Vessels From E.R. Capital Holding
Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes announced today that it has entered into a definitive agreement with entities affiliated with E.R. Capital Holding GmbH & Cie. KG (“E.R.” or “Sellers” ) pursuant to which the Company will acquire three (3) cape size dry bulk vessels , namely E.R. BAYONNE, E.R. BUENOS AIRES and E.R. BORNEO (the “Vessels”).
The Vessels are retrofitted with exhaust gas cleaning systems (Scrubbers). Consideration for the acquisition is payable in the form of $39.0 million in cash (“Cash Consideration”) and 2,100,000 common shares of Star Bulk (“Share Consideration”). The transaction was negotiated by the Company on the basis of NAV.
The Company is in advanced discussions with a leading financial institution to finance the Cash Consideration through proceeds of a five-year term loan.
Below are the details of the Vessels to be acquired from E.R.:
# Name Type Yard Country Year Built DWT1 E.R. Bayonne Capesize Hyundai Heavy Ind. South Korea 2010 180,0002 E.R. Borneo Capesize Hyundai Heavy Ind. South Korea 2010 180,0003 E.R. Buenos Aires Capesize Hyundai Heavy Ind. South Korea 2010 180,000Total 540,000
The Vessels are expected to be delivered to the Company by early February 2021 and delivery remains subject to the execution of customary closing conditions.
TWFG Insurance Acquires Penguin Insurance Services in California
TWFG Insurance has acquired Penguin Insurance Services in Milpitas, Calif.
Terms of the deal were not disclosed.
Penguin is a network of independent brokers, which supports brokers throughout California, Colorado, Nevada, Texas, Washington and Arizona.
TWFG Insurance, or The Woodlands Financial Group, is a national insurance agency based in The Woodlands, Texas.