By Paul A. Harris
Portland, Ore., Nov. 14 – Navios Maritime Holdings Inc. priced an upsized $305 million issue of 11¼% senior secured notes at 97 to yield 12.113% on Tuesday, according to a syndicate source.
The notes mature on Aug. 15, 2022. However, the maturity springs forward to Oct. 5, 2021 if at least $130 million or more of the company’s existing 7 3/8 % first-priority ship mortgage notes due Jan. 15, 2022 remain outstanding on Sept. 5, 2021.
The coupon came at the wide end of the 11% to 11¼% coupon talk. The price came on top of price talk.
The issue was increased from $300 million, with the additional proceeds resulting from the $5 million upsize going to cover the original issue discount.
The call structure was revised: the notes are immediately callable at par plus 75% of the coupon, the call premium having increased from 50%.
There were also covenant changes.
Morgan Stanley & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch are joint bookrunners on the Rule 144A and Regulation S for life deal.
Navios Maritime, a Monte Carlo, Monaco-based global shipping company specializing in the transportation of dry bulk commodities such as iron ore, coal and grain, plans to use the new-deal proceeds to refinance its existing 8 1/8% senior notes due 2019 and to pay related fees and expenses.
| Issuers: | Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc.
|
| Amount: | $305 million
|
| Maturity: | Aug. 15, 2022 (springs forward to Oct. 5, 2021 if $130 million or more of the 7 3/8% first-priority ship mortgage notes due Jan. 15, 2022 remain outstanding on Sept. 5, 2021
|
| Securities: | Senior secured notes
|
| Bookrunners: | Morgan Stanley & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Co-manager: | Goldman Sachs
|
| Coupon: | 11¼%
|
| Price: | 97
|
| Yield: | 12.113%
|
| Spread: | 1,008 bps
|
| First call: | Nov. 15, 2018 at 108.438
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Caa2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11% to 11¼% coupon at 97
|
| Marketing: | Roadshow
|
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