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Navios Maritime Partners (“NMM” or “Navios”) is contemplating a new 5-year senior unsecured bond issue:
• The bonds are expected to be rated BB by S&P and B1 by Moody’s, with a corporate rating of BB/Ba3.
• The proceeds will be used for repayment of certain existing debt and gcp.
• The proposed covenant package is somewhat stronger than most shipping peers.
Presentations on Market outlook and Arctic bond peer comparison (see links)
NMM in brief:
• One of the world’s largest listed diversified shipping companies: Listed on NYSE with a market cap of USD ~1.3bn and an estimated GAV of USD ~7+bn, NMM is one of the world’s largest publicly listed shipping companies. The company is highly diversified, with 179 vessels within dry bulk, container, crude and product tankers.
• Conservative financial profile: The company has a history of maintaining a prudent balance sheet and is rated [Ba3]/BB+ by Moody’s/S&P with B1/BB ratings expected for the contemplated bonds.
Subordinated bonds:
The bonds will rank behind (both structurally and by lien) USD ~2.2bn in first lien financing (bank debt and leasing). Additionally, there is USD 1.6bn in capital
commitments. The unsecured tranche represents a thin piece of the capital structure, which is negative for potential recovery prospects of the bonds as small changes in GAV can wipe out the unsecured tranche.