Navios Maritime Holdings Inc. (NM) stock prices were down by 1.51% as of the market closing on September 2nd, 2021. This brought the price per share down to USD$5.88 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall by 2.21%, bringing it down to USD$5.750.
NM Stock’s Collaboration
August 26th, 2021 saw NM stock announce a definitive transaction agreement with Navios Partners. The transaction will facilitate the combination of the two companies, after which public shareholders of the combined company will receive compensation. Each shareholder will receive 0.1275 stock of Navios Partners for each outstanding common share of Navios Acquisition.
Details of the Transaction
Accordingly, the entirety of Navios Acquisition’s outstanding 8.125% First Priority Ship Mortgage Notes are being redeemed, despite being due on November 15th 2021. This redemption is in accordance with the terms with the proceeds of a cash contribution from Navios Partners. A newly arranged secured term loan financing option is also contributing to the move. The closing of the merger is expected for the fourth quarter of 2021, after which Navios Holdings expects a 10.3% ownership interest in Navios Partners.
NM Stock’s Vessel Sales
June 2021 saw NM stock agree to sell the Navios Azimuth, Navios Bonavis, and the Navios ray to Navios Partners. The aggregate sales price of the vessels came out to a total of USD$88 million. The 179,169 dwt 2011 Capesize vessel, Azimuth, was sold off in a transaction dated July 2021. The 179,515 dwt 2021 Capesize vessel, Navios Bonavis, and the 180.022 dwt 2009 Capesize vessel, Navios Ray were both sold in a transaction dated June 2021.
Q2 2021 Financials
The second quarter of fiscal 2021 reported promising results. NM stock reported revenues in the amount of USD$143.6 million, along with Adjusted EBITDA in the amount of USD$85.9 million. Adjusted net income for the quarter came out to USD$30.3 million. These strong figures reflect the strength of the dry bulk market. The strength of the market is supported by rates across different vessel types. Capesize rates averaged USD$50,000 per day, while Panamax and Supramax raked in USD$35,000 a day.
Future Outlook for NM Stock
Q2 2021 proved to be a highly encouraging quarter for NM stock, as evidenced by the strength of its financial reports. Current and potential investors are excited to see the company effectively leverage the resources at their disposal to drive organic growth. This is hoped to facilitate significant and sustained increases in shareholder value.