The company received aggregate consideration of USD 20 million and new five-year service agreements under which NSAC will provide technical and commercial management services at fixed rates and administrative services, reimbursed at allocable cost.
As a result of the transaction Navios Maritime Holdings is a holding company owning dry bulk vessels and various investments in entities owning maritime and infrastructure assets, while NSAC owns all entities providing ship management services.
The company said it would pay a fixed rate of USD 3,700 per day per vessel, which will cover all technical and commercial management services and operating costs, other than dry-docking and special surveys, adding that the rate would be fixed for a two-year period and is set to increase thereafter by 3% annually.
Additionally, NSAC will own the general partner interests in Navios Maritime Containers and Navios Maritime Partners.
Furthermore, Navios Maritime Holdings simultaneously entered into a secured loan agreement with NSAC whereby the company agreed to repay NSAC USD 125 million over a five-year period.
In general, the amount owed reflects the excess of the liabilities of the ship management business, other than liabilities the assumption of which forms part of the consideration for the Transaction over, and the short term assets of the ship management business.
Of the amount owed, USD 47 million will be repayable during the first 12 months in equal quarterly installments, with the remaining principal amount repayable in equal quarterly installments over the following 48 months.
Navios Maritime Holdings said that the closing of the transaction occurred with the execution of the definitive transaction agreements.
Source: World Maritime News
