MONACO, March 26, 2018 (GLOBE NEWSWIRE) -- Navios Maritime Midstream Partners L.P. (“Navios Midstream”) (NYSE:NAP), an owner and operator of tanker vessels, reported the following developments regarding its fleet renewal and distribution policy.
Fleet Renewal and Backstop
Navios Midstream agreed to acquire the Nave Galactic a 2009-built VLCC from Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE:NNA) for $44.5 million. Navios Midstream also agreed to sell the Shinyo Kannika to an unrelated party for $17.0 million.
Navios Acquisition’s charter rate backstop has been extended to the Nave Galactic. This charter rate backstop was previously for the Shinyo Kannika, and under the backstop Navios Acquisition will pay Navios Midstream any shortfall between (a) $38,025 per day and (b) the average charter rate for each calendar year through February 2019.
The acquisition of the Nave Galactic, a nine-year old vessel, and the sale of the Shinyo Kannika, a 17-year old vessel, will reduce the average age of the fleet by 10%. Navios Midstream will continue to refresh its fleet, thereby seeking to revitalize its cash flow generating ability.
The Nave Galactic will substitute for the Shinyo Kannika under the Term Loan B.
The acquisition of the Nave Galactic transaction has been unanimously approved by the Conflicts Committee of the Board of Directors (“Board”) of Navios Midstream.
The Board has reset the annual distribution policy to $0.50 per unit, after an extensive review of current and prospective market conditions, fleet profile and financial position, among other factors. The Board reset the distribution to enable Navios Midstream to redirect internally generated cash flow toward renewing the fleet while maintaining a healthy balance sheet during difficult market conditions. The Board believes that the announced distribution is in the best interests of all of its stakeholders, including its unitholders. The new distribution will be effective for the first quarter of 2018, to unitholders of record on May 9, 2018 and will be payable on May 11, 2018.
Since going public in the fourth quarter of 2014, Navios Midstream returned capital to unitholders, without reduction. Any unitholder who purchased common units on the IPO date would have received a total of $5.25 per unit in distributions to date.
About Navios Maritime Midstream Partners L.P.
Navios Maritime Midstream Partners L.P. is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit our website at www.navios-midstream.com.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and expectations, including with respect to Navios Midstream’s future dividends and Navios Midstream's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Navios Midstream at the time these statements were made. Although Navios Midstream believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Midstream. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and drydocking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Midstream operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Midstream’s filings with the U.S. Securities and Exchange Commission including its Form 20-Fs and Form 6-Ks. Navios Midstream expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Midstream’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Midstream makes no prediction or statement about the performance of its common units.
Investor Relations Contact
Navios Maritime Midstream Partners L.P.
+1 (212) 906 8647
Source:Navios Maritime Midstream Partners LP