New York-listed tanker owner and operator Navios Maritime Acquisition has secured an up to $100m loan from a subsidiary of N Shipmanagement Acquisition, an entity affiliated with its chairman and CEO, Angeliki Frangou.
A two-year loan has scheduled amortisation and bears interest at a rate of 11% per annum, payable quarterly. It also comes with defer option, but with interest rate of 12.5% per annum.
The deal also gives N Shipmanagement Acquisition a choice, exercisable from August this year, to acquire partnership interests of Navios Maritime Midstream Partners by exchanging any portion of amounts outstanding under the loan for Midstream equity.
Collateral for the loan consists of: a first priority pledge of the partnership interests of Midstream, which owns 25 tankers; a first priority pledge of the equity interests in two entities that hold the rights to the bareboat charter-in contracts for two of Navios Acquisition’s VLCC vessels; and a first priority pledge of the $67.4m in aggregate principal amount of Navios Acquisition’s first priority ship mortgage notes due 2021.
Navios Acquisition has drawn $18m under the loan.