Business Context and Reporting Period
This Form 6-K filing by Navios Maritime Partners L.P. is dated May 27, 2011, with signatures dated June 8, 2011. The report discloses the execution of a new term loan facility and an amendment to an existing facility agreement to support vessel acquisitions.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, or margin data. It focuses on specific debt instruments:
- New Term Loan: $35.0 million facility with DVB Bank SE and Commerzbank AG.
- Interest Rate: LIBOR plus 270 basis points.
- Repayment Terms: 28 equal quarterly installments of $625,000 plus a final payment of $17.5 million.
- Existing Facility: Amendment to the Facility Agreement dated November 15, 2007, adding new guarantors.
Material Changes
The primary material change is the acquisition of two vessels, the Navios Orbiter and the Navios Luz, which occurred on May 19, 2011. The new $35.0 million loan was entered into on May 27, 2011, specifically to finance a portion of the purchase price for these vessels.
Guidance, Risks, and Contingencies
The filing outlines specific covenants and risks associated with the new Loan Agreement:
- Financial Covenants: The agreement requires compliance with certain financial covenants.
- Ownership Default: An event of default occurs if the general partner, Navios Maritime Holdings Inc., or Angeliki Frangou (Chairman and CEO) beneficially own less than 20% of Navios Partners.
- Guarantors: The Seventh Supplemental Agreement adds new guarantors to the existing 2007 facility.
The filing does not provide forward-looking guidance, management commentary on future performance, or details on other contingencies.
Investor Verification Checklist
- Verify the closing status and delivery of the Navios Orbiter and Navios Luz vessels.
- Confirm current beneficial ownership percentages of Navios Maritime Holdings Inc. and Angeliki Frangou to ensure they remain above the 20% default threshold.
- Review the specific financial covenants detailed in the attached Exhibit 10.1 Facility Agreement.
- Identify the specific entities added as new guarantors under the Seventh Supplemental Agreement (Exhibit 10.2).