Navigazione Montanari seals big sale and leaseback deal with Sole Shipping

Fano-headquartered Navigazione Montanari has successfully completed a complex refinancing transaction of its existing $300m debt exposure with its long-term financing banks, BNP Paribas, ING and Danish Ship Finance.

The transaction consists of a sale and leaseback with Sole Shipping of 11 of the existing fleet of 21 vessels that will allow a debt reimbursement, along with the renegotiation of the residual debt exposure. The new financing agreement will include an extension of the maturities by five years together with a debt service and a covenant package. The transaction also features the possibility to renew the fleet, as Navigazione Montanari is planning to further invest in technologically advanced vessels with a progressive substitution of its older ships.

The Italian shipping company controlled by the Montanari family issued a statement to Splash, stating: “The top management team will continue to be actively involved in the technical and commercial management of the 21-vessel fleet with the aim of further developing its operations. The long-term strategic objective is to increase the size of the fleet and to become a third-party vessel management company, leveraging upon NavMont’s strong expertise and commercial network.”

Lazard, its long-term exclusive financial advisor, has advised Navigazione Montanari across all the transaction phases. DLA Piper acted as legal advisers of the company while Chiomenti and Watson Farley & Williams advised the financing banks.