Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, yesterday announced that the Company has entered into an agreement to acquire two 75,000 DWT LR1 product tankers scheduled for delivery in the fourth quarter of 2011 from a South Korean shipyard, Hellenic Shipping News reported citing Navios Maritime Acquisition Corporation.
The nominal acquisition price of $87.0 million will be financed with: Issuance of $5.4 million mandatorily convertible preferred stock ("preferred stock"), New credit facility of $52.2 million, $29.4 million cash on hand.
The effective acquisition price for the two vessels is $82.8 million or $41.4 million per vessel, giving effect to the preferred stock.
Angeliki Frangou, Chairman and CEO of Navios Acquisition said: "we purchased these vessels at attractive prices. This deal demonstrates the strength of our relationships and our belief in the product tanker sector. We are also pleased that, in connection with this deal, we were able to extend the maturity of the purchase options for two other LR1 tankers and defer delivery of two LR1 tankers to the second half of 2012."
Ms. Frangou continued, "We continue to look to grow the fleet. Our ability to use mandatorily convertible preferred stock to partially fund the acquisition of two LR1 product tankers suggests that our equity is attractive as an acquisition currency."
The nominal acquisition price of $87.0 million will be financed with: Issuance of $5.4 million mandatorily convertible preferred stock ("preferred stock"), New credit facility of $52.2 million, $29.4 million cash on hand.
The effective acquisition price for the two vessels is $82.8 million or $41.4 million per vessel, giving effect to the preferred stock.
Angeliki Frangou, Chairman and CEO of Navios Acquisition said: "we purchased these vessels at attractive prices. This deal demonstrates the strength of our relationships and our belief in the product tanker sector. We are also pleased that, in connection with this deal, we were able to extend the maturity of the purchase options for two other LR1 tankers and defer delivery of two LR1 tankers to the second half of 2012."
Ms. Frangou continued, "We continue to look to grow the fleet. Our ability to use mandatorily convertible preferred stock to partially fund the acquisition of two LR1 product tankers suggests that our equity is attractive as an acquisition currency."