Navios Maritime Holdings Inc. Announces Proposed Private Debt Offering Relating to Navios South American Logistics Inc.
June 03 2019 - 7:47AM
Navios Maritime Holdings Inc. (“Navios Holdings” or “the
Company”) (NYSE:NM), a global, vertically integrated seaborne
shipping and logistics company, today announced that Corporacion
Navios Sociedad Anonima (“CNSA”), which is 100% owned by the
Company’s subsidiary Navios South American Logistics Inc. (“Navios
Logistics”), proposes to enter into a transaction with Mineral
Logistics, a Cayman Islands trust (the Issuer”), whereby the Issuer
proposes to offer senior secured notes (the “notes”) in a private
placement (the “Offering”), with the proceeds of such issuance to
be used by the Issuer to make a senior secured loan (the “loan”) to
CNSA.
CNSA plans to use the proceeds from the loan to pay the fees and
expenses of the Offering and the related transactions, with the
remainder for general corporate purposes, including making a
distribution to Navios Logistics. Navios Logistics intends to
use such distribution proceeds for general corporate purposes,
including repayment of the 7.25% senior notes due May 1, 2022 and
term loan B facility due November 1, 2022.
The loan will be secured by, among other things, all of CNSA’s
right, title, interest and benefits in all of its collection rights
under the Unloading, Storing, Weighing and Loading Services
Contract, dated September 27, 2013, between CNSA and Vale
International S.A., and a pledge by Navios Logistics of all of the
issued and outstanding shares of CNSA owned by Navios
Logistics. The notes will be guaranteed by CNSA, and will be
secured by, among other things, the Issuer’s rights to the
collateral securing the loan.About Navios Maritime Holdings
Inc.Navios Maritime Holdings Inc. (NYSE: NM) is a global,
vertically integrated seaborne shipping and logistics company
focused on the transport and transshipment of dry bulk commodities
including iron ore, coal and grain.Disclaimer
The notes proposed to be offered will not be registered under
the Securities Act of 1933, as amended (the “Securities Act”), or
any state securities laws and may not be offered or sold in the
United States or to any U.S. persons absent registration under the
Securities Act, or pursuant to an applicable exemption from, or in
a transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws. The notes
will be offered only to “qualified institutional buyers” under
Rule 144A of the Securities Act or, outside the United States,
to persons other than “U.S. persons” in compliance with
Regulation S under the Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the notes, nor shall there be any
offer, solicitation or sale of any notes in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
Company cannot provide any assurances that the proposed offering
will be completed or regarding the terms on which it may be
completed.
Forward Looking Statements - Safe Harbor 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, including with respect to completion of the
Offering. These forward-looking statements are based on the
information available to, and the expectations and assumptions
deemed reasonable by Navios Holdings at the time these statements
were made. Although Navios Holdings believes that the expectations
reflected in such forward-looking statements are reasonable at the
time made, 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 which are inherently subject to significant uncertainties
and contingencies, many of which are beyond the control of Navios
Holdings. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Navios Holdings
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 Holdings'
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Contact:Navios Maritime Holdings Inc.
+1.212.906.8643investors@navios.com
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