Set to close this quarter, the deal includes seven bulkers and seven container vessels, with an average age of four years.
"This is our second transaction with HSH and demonstrates our ability to source and execute exclusive proprietary deals in a very difficult market environment,” said Navios chairman and ceo Angeliki Frangou. “These transactions differentiate us from our peers as we are acquiring large fleets with low capital investment and no dilution to our shareholders. The transaction adds tremendous value for Navios and HSH as it provides relief to distressed assets from bankruptcy and places them into Navios' stable ownership, leveraging our economies of scale and superior technical and commercial management."
Frangou continued, "This second transaction scales up on the existing mechanism with HSH to acquire distressed vessels at historically low values and economics that are more favorable when compared to the first transaction. The fleet is larger and younger and Navios enjoys an attractive preferred return per annum on its investment."
Navios will finance 60% of the value of the vessels, secured against the vessels with a first-priority mortgage. The deal is expected to close in Q2 2015.
"Navios JV will receive an annual preferred return on its $14 million investment and a priority return of this investment upon the sale of vessels," Navios said. The JV will not be consolidated into any of Navios' listed entities.