6-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

DATED: November 29, 2021

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

7 Avenue de Grande Bretagne, Office 11B2

Monte Carlo, MC 98000 Monaco

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    Yes  ☐    No  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    Yes  ☐    No  ☒

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.    Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

FORM 6-K

TABLE OF CONTENTS

 

     Page  

Operating and Financial Review and Prospects

     2  

Financial Statements Index

     F-1  

This Report on Form 6-K is hereby incorporated by reference into the Navios Maritime Partners L.P. Registration Statement on Form F-3, File No. 333-237934.

Operating and Financial Review and Prospects

The following is a discussion of the financial condition and results of operations for the three and nine month periods ended September 30, 2021 and 2020 of Navios Maritime Partners L.P. (referred to herein as “we”, “us”, “Company” or “Navios Partners”). All of the financial statements have been stated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Partners’ 2020 Annual Report filed on Form 20-F with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2021.

This Report contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including Navios Partners’ 2021 cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, Navios Partners’ ability to realize the projected advantages of the NNA Merger with Navios Maritime Acquisition Corporation (“Navios Acquisition”), opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters and Navios Partners’ ability to refinance its debt on attractive terms, or at all. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing, potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume, the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, our ability to maximize the use of our vessels, expected demand in the dry and liquid cargo shipping sectors in general and the demand for our Panamax, Capesize, Ultra-Handymax, Containerships and Tanker vessels in particular, dry cargo and tanker industry trends, fluctuations in charter rates for dry bulk vessels, containerships and tanker vessels, vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and dry docking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Partners’ filings with the U.S. Securities and Exchange Commission, including its reports on Form 20-F and reports on Form 6-K. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.

 

2


Table of Contents

Recent Developments

Sale of one vessel

On October 29, 2021, Navios Partners completed the sale of the Navios Altair I, a 2006-built Panamax vessel of 74,475 dwt, to an unrelated third party for a net sale price of $13.5 million.

Merger with Navios Acquisition

On October 15, 2021, Navios Partners completed its merger (the “NNA Merger”) with Navios Acquisition. As a result of the NNA Merger, Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding share of common stock of Navios Acquisition that was held by a stockholder other than Navios Partners was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result of the NNA Merger, 3,388,226 common units of Navios Partners were issued to former public stockholders of Navios Acquisition.

Overview

We are an international owner and operator of dry cargo and liquid vessels, formed in August 2007 under the laws of the Republic of the Marshall Islands. We have been a public company since November 2007. Currently, our general partner is Olympos Maritime Ltd. (the “General Partner”) and holds a 2.0% general partner interest in Navios Partners.

As of November 23, 2021, there were 30,197,087 outstanding common units and 622,555 general partnership units. Navios Maritime Holdings Inc. (“Navios Holdings”) currently owns an approximately 10.3% ownership interest in Navios Partners and the General Partner currently owns 2.0% general partner interest in Navios Partners.

Fleet

As of November 23, 2021, our fleet consists of 26 Panamax vessels, 24 Capesize vessels, four Ultra Handymax vessels and 43 Containerships and 45 Tankers, including four Capesize bareboat charter-in vessels expected to be delivered by the second half of 2022, one Capesize bareboat charter-in vessel expected to be delivered by the first half of 2023, two Panamax bareboat charter-in vessels expected to be delivered by the second half of 2022 and first half of 2023, one VLCC bareboat charter-in vessel expected to be delivered by the second half of 2022 and six Containerships expected to be delivered by the second half of 2023 and 2024.

We generate revenues by charging our customers for the use of our vessels to transport their dry cargo commodities, containers, crude oil, refined petroleum products and bulk liquid chemicals. In general, the vessels in our fleet are chartered-out under time charters, which range in length from one to twelve years at inception. From time to time, we operate vessels in the spot market until the vessels have been chartered out under short-term, medium and long-term charters.

 

3


Table of Contents

The following table provides summary information about our combined fleet as of November 23, 2021:

 

Owned Drybulk Vessels

  

Type

   Built    Capacity
(DWT)
   Charter-Out
Rate(1)
  

Index(2)

   Expiration Date(3)  

Navios La Paix

   Ultra-Handymax    2014    61,485       111.0% average BSI 58 10TC      February 2022  

Navios Christine B

   Ultra-Handymax    2009    58,058    $9,548    No      January 2022  

Navios Amaryllis

   Ultra-Handymax    2008    58,735            Spot  

Serenitas N

   Ultra-Handymax    2011    56,644       99.0% average BSI 58 10TC      June 2022  

Navios Hyperion

   Panamax    2004    75,707    $17,100         February 2022  

Navios Alegria

   Panamax    2004    76,466       99.5% average BPI 4TC      April 2022  

Navios Orbiter

   Panamax    2004    76,602       100.0% average BPI 4TC      February 2022  

Navios Helios

   Panamax    2005    77,075       100.0% average BPI 4TC      December 2022  

Navios Sun

   Panamax    2005    76,619       100.0% average BPI 4TC      March 2023  

Navios Hope

   Panamax    2005    75,397    $9,625    No      December 2021  
               100.0% average BPI 4TC      April 2023  

Navios Sagittarius(5)

   Panamax    2006    75,756    $10,783    No      December 2021  

Navios Harmony

   Panamax    2006    82,790    $28,500    No      August 2022  

Navios Prosperity I

   Panamax    2007    75,527    $28,025    No      December 2021  

Navios Libertas

   Panamax    2007    75,511    $28,025    No      December 2021  

Navios Symmetry

   Panamax    2006    74,381    $11,804    No      March 2022  

Navios Apollon I

   Panamax    2005    87,052       109.0% average BPI 4TC      February 2022  

Navios Sphera

   Panamax    2016    84,872       120.0% average BPI 4TC      May 2022  

Navios Camelia

   Panamax    2009    75,162    $28,975    No      March 2022  

Navios Anthos

   Panamax    2004    75,798    $9,595    No      January 2022  

Copernicus N

   Panamax    2010    93,062       108.0% average BPI 4TC      October 2022  

Unity N

   Panamax    2011    79,642    $26,125    No      January 2022  
               100.0% average BPI 4TC      July 2022  

Odysseus N

   Panamax    2011    79,642    $29,925    No      April 2022  

Navios Victory

   Panamax    2014    77,095    $12,513    No      June 2022  

Navios Avior

   Panamax    2012    81,355    $14,131    No      February 2022  

Navios Centaurus

   Panamax    2012    81,472    $32,300    No      March 2022  

Navios Beaufiks(6)

   Capesize    2004    180,310    $22,563    No      January 2024  

Navios Symphony

   Capesize    2010    178,132       100.5% average BCI 5TC      December 2021  

Navios Fantastiks(7)

   Capesize    2005    180,265    $21,650    No      March 2023  

Navios Aurora II

   Capesize    2009    169,031       95.25% average BCI 5TC      April 2022  

Navios Pollux(7)

   Capesize    2009    180,727       100.0% of pool earnings      February 2022  

Navios Sol(8)

   Capesize    2009    180,274       110.0% average BCI 5TC      March 2022  

Navios Fulvia

   Capesize    2010    179,263       100.0% average BCI 5TC      February 2023  

Navios Buena Ventura

   Capesize    2010    179,259       100.5% average BCI 5TC      March 2023  

Navios Melodia

   Capesize    2010    179,132    $29,356   

Profit sharing 50% above

$37,500/day based on

Baltic Exchange Capesize

TC Average

     September 2022  

Navios Luz

   Capesize    2010    179,144       101.0% average BCI 5TC      March 2022  

Navios Ace(9)

   Capesize    2011    179,016       105.5% average BCI 5TC      March 2022  

Navios Aster

   Capesize    2010    179,314    $31,350    No      December 2021  
            $27,731    No      January 2023  

Navios Joy

   Capesize    2013    181,389    Freight Voyage    No      April 2022  

Navios Gem

   Capesize    2014    181,336    $17,623    No      February 2022  

Navios Mars

   Capesize    2016    181,259    $22,610    No      February 2022  

Navios Koyo

   Capesize    2011    181,415       100.0% average BCI 5TC plus $1,900/day      December 2021  

Navios Ray(10)

   Capesize    2012    179,515       102.0% average BCI 5TC      January 2022  

Navios Bonavis(7)

   Capesize    2009    180,022       101.5% average BCI 5TC      March 2023  

Navios Azimuth

   Capesize    2011    179,169       102.0% average BCI 5TC      January 2022  
               100.0% average BCI 5TC      February 2023  

 

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Table of Contents

Owned Containerships

  

Type

   Built    Capacity
(TEU)
   Charter-Out
Rate(1)
  

Index(2)

   Expiration Date(3)  

Spectrum N

   Containership    2009    2,546    $15,800    No      April 2022  

Protostar N

   Containership    2007    2,741    $17,775    No      July 2022  

Fleur N

   Containership    2012    2,782    $19,750    No      March 2024  

Ete N

   Containership    2012    2,782    $19,750    No      February 2024  

Navios Summer(11)

   Containership    2006    3,450    $16,960    No      May 2022  

Matson Oahu(11)

   Containership    2006    3,450    $22,713    No      May 2023  

Navios Spring(11)

   Containership    2007    3,450    $10,326    No      March 2022  

Navios Vermilion(11)

   Containership    2007    4,250    $21,330    No      December 2021  
            $54,313    No      December 2022  
            $45,425    No      December 2023  
            $23,972    No      November 2024  
            $41,722    No      December 2024  

Navios Indigo(11)

   Containership    2007    4,250    $22,713    No      February 2022  
            $63,375    No      February 2023  
            $43,875    No      February 2024  
            $34,125    No      February 2025  
            $24,375    No      February 2026  
            $41,438    No      June 2026  

Navios Amaranth(11)

   Containership    2007    4,250    $18,121    No      December 2021  
            $55,794    No      July 2025  

Navios Amarillo(11)

   Containership    2007    4,250    $20,845    No      November 2022  

Navios Verde(11)

   Containership    2007    4,250    $20,845    No      June 2023  

Navios Azure(11)

   Containership    2007    4,250    $22,678    No      September 2022  

Navios Domino(11)

   Containership    2008    4,250    $24,934    No      June 2023  

Navios Delight(11)

   Containership    2008    4,250    $45,425    No      December 2023  

Navios Destiny(11)

   Containership    2009    4,250    $18,022    No      November 2021  
            $54,313    No      November 2022  
            $45,425    No      November 2023  
            $23,972    No      October 2024  
            $41,722    No      November 2024  

Navios Devotion(11)

   Containership    2009    4,250    $23,700    No      February 2022  
            $63,375    No      February 2023  
            $43,875    No      February 2024  
            $34,125    No      February 2025  
            $24,375    No      February 2026  
            $41,438    No      June 2026  

Navios Lapis

   Containership    2009    4,250    $31,353    No      May 2023  

Navios Tempo

   Containership    2009    4,250    $13,000    No      December 2021  
            $44,438    No      July 2025  

Navios Dorado

   Containership    2010    4,250    $21,676    No      April 2023  

Navios Felicitas

   Containership    2010    4,360    $18,121    No      January 2022  
            $63,375    No      January 2023  
            $43,875    No      January 2024  
            $34,125    No      January 2025  
            $24,375    No      January 2026  
            $41,438    No      May 2026  

Bahamas

   Containership    2010    4,360    $22,219    No      November 2022  

Bermuda

   Containership    2010    4,360    $11,580    No      March 2022  

Navios Miami

   Containership    2009    4,563    $54,313    No      November 2022  
            $45,425    No      November 2023  
            $23,972    No      October 2024  
            $41,722    No      November 2024  

Navios Magnolia

   Containership    2008    4,730    $54,313    No      November 2022  
            $45,425    No      November 2023  
            $23,972    No      October 2024  
            $41,722    No      November 2024  

Navios Jasmine

   Containership    2008    4,730    $21,825    No      December 2022  

Navios Chrysalis

   Containership    2008    4,730    $30,083    No      July 2023  

Navios Nerine

   Containership    2008    4,730    $54,313    No      October 2022  
            $45,425    No      October 2023  
            $23,972    No      September 2024  
            $41,722    No      October 2024  

Hyundai Hongkong(4)

   Containership    2006    6,800    $30,119    No      December 2023  
            $21,083    No      December 2028  

Hyundai Singapore(4)

   Containership    2006    6,800    $30,119    No      December 2023  
            $21,083    No      December 2028  

Hyundai Tokyo(4)

   Containership    2006    6,800    $30,119    No      December 2023  
            $21,083    No      December 2028  

Hyundai Shanghai(4)

   Containership    2006    6,800    $30,119    No      December 2023  
            $21,083    No      December 2028  

Hyundai Busan(4)

   Containership    2006    6,800    $30,119    No      December 2023  
            $21,083    No      December 2028  

Navios Utmost(12)

   Containership    2006    8,204    $21,656    No      September 2022  

Navios Unite(12)

   Containership    2006    8,204    $27,840    No      April 2024  

Navios Unison(13)

   Containership    2010    10,000    $26,276    No      May 2026  

Navios Constellation(13)

   Containership    2011    10,000    $26,276    No      May 2026  

 

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Table of Contents

Owned Tanker Vessels

  

Type

   Built    Capacity
(DWT)
   Charter-Out
Rate(1)
  

Profit Sharing
Arrangements

   Expiration Date(3)  

Nave Cosmos(14)

   Chemical Tanker    2010    25,130    Floating Rate    No      February 2022  

Nave Polaris(14)

   Chemical Tanker    2011    25,145    Floating Rate    No      February 2022  

Perseus N(15)

   MR1 Product Tanker    2009    36,264    $11,356    No      May 2022  

Star N

   MR1 Product Tanker    2009    37,836    $11,603    No      April 2022  

Hector N(16)

   MR1 Product Tanker    2008    38,402    $11,356    No      January 2022  

Nave Dorado(17)

   MR2 Product Tanker    2005    47,999    $6,419    Yes      April 2022  

Nave Aquila

   MR2 Product Tanker    2012    49,991    $12,838    No      January 2022  

Nave Atria(18)

   MR2 Product Tanker    2012    49,992    $13,948    No      May 2023  

Nave Capella(19)

   MR2 Product Tanker    2013    49,995    $12,898    No      January 2022  

Nave Alderamin(20)

   MR2 Product Tanker    2013    49,998    $12,898    No      May 2022  

Nave Pyxis(21)

   MR2 Product Tanker    2014    49,998    $13,331    No      January 2022  

Nave Bellatrix

   MR2 Product Tanker    2013    49,999    $10,665    No      April 2022  
            $13,084    No      June 2022  

Nave Orion(20)

   MR2 Product Tanker    2013    49,999    $12,898    No      June 2022  

Nave Titan

   MR2 Product Tanker    2013    49,999    $14,919    No      January 2022  

Nave Luminosity

   MR2 Product Tanker    2014    49,999    $17,034    No      November 2021  
            $14,813    No      November 2022  

Nave Jupiter(22)

   MR2 Product Tanker    2014    49,999    $15,504    No      August 2022  

Nave Velocity(23)

   MR2 Product Tanker    2015    49,999    $15,553    No      November 2024  

Nave Sextans(24)

   MR2 Product Tanker    2015    49,999    $13,764    No      April 2022  

Nave Orbit(25)

   MR2 Product Tanker    2009    50,470    $14,418    No      March 2023  

Nave Equator

   MR2 Product Tanker    2009    50,542    $16,250    No      January 2022  
            $14,500    No      March 2022  

Bougainville

   MR2 Product Tanker    2013    50,626    $13,578    No      September 2022  

Nave Equinox(26)(27)

   MR2 Product Tanker    2007    50,922    $11,356    No      March 2022  

Nave Pulsar(26)

   MR2 Product Tanker    2007    50,922    $14,072    No      December 2021  
            $6,978    No      January 2022  

Aurora N(28)

   LR1 Product Tanker    2008    63,495    Floating Rate    No      February 2022  

Lumen N(28)

   LR1 Product Tanker    2008    63,599    Floating Rate    No      February 2022  

Nave Cetus(29)

   LR1 Product Tanker    2012    74,581    $16,088    No      December 2021  
            $14,138    No      December 2022  

Nave Ariadne(28)

   LR1 Product Tanker    2007    74,671    Floating Rate    No      February 2022  

Nave Cielo

   LR1 Product Tanker    2007    74,671    $12,994    No      April 2022  

Nave Rigel(29)

   LR1 Product Tanker    2013    74,673    $16,088    No      December 2021  
            $14,138    No      December 2022  

Nave Atropos

   LR1 Product Tanker    2013    74,695    $14,813    No      April 2022  

Nave Cassiopeia(30)

   LR1 Product Tanker    2012    74,711    Floating Rate    No      January 2022  

Nave Andromeda(30)

   LR1 Product Tanker    2011    75,000    Floating Rate    No      January 2022  

Nave Estella(31)

   LR1 Product Tanker    2012    75,000    $13,234    No      December 2021  
            $13,716    No      June 2022  

Nave Constellation

   VLCC    2010    296,988            Spot  

Nave Universe(32)

   VLCC    2011    297,066    $17,775    Yes      April 2022  

Nave Galactic(32)

   VLCC    2009    297,168    $17,775    Yes      June 2022  

Nave Spherical(33)

   VLCC    2009    297,188    Floating Rate    No      December 2022  

Nave Quasar(34)

   VLCC    2010    297,376    $16,778    Yes      February 2023  

Nave Photon(35)

   VLCC    2008    297,395    $7,900    No      December 2021  

Nave Buena Suerte(36)

   VLCC    2011    297,491    $47,906    Yes      June 2025  

Nave Synergy

   VLCC    2010    299,973    $32,588    No      May 2022  

Bareboat Chartered-in Vessels

  

Type

   Built    Capacity
(DWT)
   Charter-Out
Rate(1)
  

Index(2)

   Expiration Date(3)  

Navios Libra

   Panamax    2019    82,011       109.75% average BPI 82      July 2024  

Navios Amitie

   Panamax    2021    82,002       110.0% average BPI 82      May 2024  

Navios Star

   Panamax    2021    81,994       110.0% average BPI 82      June 2024  

Nave Electron(36)

   VLCC    2021    313,239    $47,906    Yes      July 2026  

Baghdad(37)

   VLCC    2020    313,433    $27,816    No      October 2030  

Erbil(37)

   VLCC    2021    313,486    $27,816    No      February 2031  

 

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Table of Contents

Bareboat Chartered-in

Vessels to be Delivered

  

Type

   Delivery
Date
   Capacity
(DWT)
   Charter-Out
Rate(1)
  

Index(2)

   Expiration Date(3)  

TBN 1(38)

   Capesize    2022    180,000             

TBN 2(38)

   Capesize    2022    180,000             

TBN 3(38)

   Capesize    2022    180,000             

TBN 4(38)

   Panamax    2022    81,000             

TBN 5(39)

   Capesize    2023    180,000             

TBN 6(39)

   Panamax    2023    81,000             

TBN 7(38)

   Capesize    2022    180,000             

TBN 14(38)

   VLCC    2022    310,000             

Owned Containerships to

be Delivered

  

Type

   Delivery
Date
   Capacity
(TEU)
   Charter-Out
Rate(1)
  

Index(2)

   Expiration Date(3)  

TBN 8(40)

   Containership    2023    5,300    $42,900    No      September 2024  
            $39,000    No      September 2025  
            $37,050    No      September 2026  
            $35,100    No      September 2027  
            $31,200    No      September 2028  
            $37,050    No      November 2028  

TBN 9(40)

   Containership    2023    5,300    $42,900    No      December 2024  
            $39,000    No      December 2025  
            $37,050    No      December 2026  
            $35,100    No      December 2027  
            $31,200    No      December 2028  
            $37,050    No      February 2029  

TBN 10(41)

   Containership    2024    5,300    $42,900    No      June 2025  
            $39,000    No      June 2026  
            $37,050    No      June 2027  
            $35,100    No      June 2028  
            $31,200    No      June 2029  
            $37,050    No      August 2029  

TBN 12(41)

   Containership    2024    5,300    $42,900    No      June 2025  
            $39,000    No      June 2026  
            $37,050    No      June 2027  
            $35,100    No      June 2028  
            $31,200    No      June 2029  
            $37,050    No      August 2029  

TBN 12(42)

   Containership    2024    5,300    $42,900    No      September 2025  
            $39,000    No      September 2026  
            $37,050    No      September 2027  
            $35,100    No      September 2028  
            $31,200    No      September 2029  
            $37,050    No      November 2029  

TBN 13(42)

   Containership    2024    5,300    $42,900    No      November 2025  
            $39,000    No      November 2026  
            $37,050    No      November 2027  
            $35,100    No      November 2028  
            $31,200    No      November 2029  
            $37,050    No      January 2030  

 

(1)

Daily charter-out rate per day, net of commissions.

(2)

Index rates exclude commissions.

(3)

Estimated dates assuming the midpoint or company’s best estimate of the redelivery period by charterers.

(4)

Includes five optional years (owners’ option) starting 2023.

(5)

The vessel is subject to a sale and leaseback transaction for a period of up to three years, at which time we have an obligation to purchase the vessel.

 

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(6)

The vessel is subject to a sale and leaseback transaction for a period of up to five years, at which time we have an obligation to purchase the vessel.

(7)

The vessel is subject to a sale and leaseback transaction for a period of up to six years, at which time we have an obligation to purchase the vessel.

(8)

The vessel is subject to a sale and leaseback transaction for a period of up to ten years, at which time we have an obligation to purchase the vessel.

(9)

The vessel is subject to a sale and leaseback transaction for a period of up to 11 years, at which time we have an obligation to purchase the vessel.

(10)

The vessel is subject to a sale and leaseback transaction for a period of up to nine years, at which time we have an obligation to purchase the vessel.

(11)

The vessel is subject to a sale and leaseback transaction for a period of up to five years, at which time we have an obligation to purchase the vessel.

(12)

The vessel is subject to a sale and leaseback transaction for a period of up to five years, at which time we have an obligation to purchase the vessel.

(13)

The vessel is subject to a sale and leaseback transaction for a period of up to seven years, at which time we have an obligation to purchase the vessel.

(14)

Rate based on Delta-8 pool earnings.

(15)

Charterer’s option to extend the charter for six months at $12,590 net per day.

(16)

Charterer’s option to extend the charter for up to six months at $12,591 net per day.

(17)

Profit sharing arrangement of 100% above $6,419 and 25% above $8,888.

(18)

Charterer’s option to extend the charter for up to 18 months at $14,887 net per day.

(19)

Charterer’s option to extend the charter for an optional year at $14,438 net per day.

(20)

Charterer’s option to extend the charter for up to six months at $13,956 net per day.

(21)

Charterer’s option to extend the charter for up to six months at $14,438 net per day.

(22)

Charterer’s option to extend the charter for an optional year at $16,491 net per day.

(23)

Charterer’s option to extend the charter for one year at $16,540 net per day plus one year at $17,528 net per day.

(24)

Charterer’s option to extend the charter for up to six months at $15,689 net per day.

(25)

Charterer’s option to extend the charter for up to 18 months at $15,306 net per day.

(26)

The premium for the Nave Equinox and the Nave Pulsar when vessels are trading on ice or follow ice breaker is $1,481 per day.

(27)

Charterer’s option to extend the charter for an optional six month period at $12,591 net per day.

(28)

Rate based on Penfield pool earnings.

(29)

Charterer’s option to extend the charter for three months at $16,088 net per day.

(30)

Rate based on LR8 pool earnings.

(31)

Charterer’s option to extend the charter for six months at $15,400 net per day.

(32)

Contract provides adjusted BITR TD3C-TCE index with a floor of $17,775, 100% to Navios up to collar $38,759 and 50% thereafter. Charterer’s option to extend for six months at same terms.

(33)

Contract provides 100% of BITR TD3C-TCE index plus $5,000 premium. Charterer’s option to extend for one year at TD3C-TCE index plus $1,500 premium.

(34)

Contract provides 100% of BITR TD3C-TCE index up to $37,031 and 50% thereafter with $16,788 floor.

(35)

Charterer’s option to extend the charter for three months at $18,269 net per day.

(36)

Profit sharing arrangement of 35% above $54,388, 40% above $59,388 and 50% above $69,388.

(37)

Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.

(38)

Expected to be delivered by the second half of 2022.

(39)

Expected to be delivered in the first half of 2023.

(40)

Expected to be delivered in the second half of 2023.

(41)

Expected to be delivered in the first half of 2024.

(42)

Expected to be delivered in the second half of 2024.

Our Charters

We provide seaborne shipping services under short-term, medium and long-term time charters with customers that we believe are creditworthy. For the nine month period ended September 30, 2021, Singapore Marine Pte. Ltd. (“Singapore Marine”) represented approximately 14.8%, of total revenues. For the nine month period ended September 30, 2020, Hyundai Merchant Marine Co., Ltd (“HMM”) represented approximately 24.6% of total revenues. No other customers accounted for 10% or more of total revenues for any of the periods presented.

Our revenues are driven by the number of vessels in the fleet, the number of days during which vessels operate and our charter hire rates, which, in turn, are affected by a number of factors, including:

 

   

the duration of the charters;

 

   

the level of spot and long-term market rates at the time of charters;

 

   

decisions relating to vessel acquisitions and disposals;

 

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the amount of time spent positioning vessels;

 

   

the amount of time that vessels spend in dry dock undergoing repairs and upgrades;

 

   

the age, condition and specifications of the vessels; and

 

   

the aggregate level of supply and demand in the shipping industry.

Time charters are available for varying periods, ranging from a single trip (spot charter) to long-term which may be many years. In general, a long-term time charter assures the vessel owner of a consistent stream of revenue. Operating the vessel in the spot market affords the owner greater spot market opportunity, which may result in high rates when vessels are in high demand or low rates when vessel availability exceeds demand. We intend to operate our vessels in the long-term charter market. Vessel charter rates are affected by world economics, international events, weather conditions, strikes, governmental policies, supply and demand and many other factors that might be beyond our control. Please read “Risk Factors” in our 2020 Annual Report on Form 20-F for a discussion of certain risks inherent in our business. Please also read “Risk Factors” in Navios Acquisition’s 2020 Annual Report on Form 20-F for a discussion of certain risks inherent in our business following the control obtained over Navios Acquisition.

We could lose a customer or the benefits of a charter if:

 

   

the customer fails to make charter payments because of its financial inability, disagreements with us or otherwise;

 

   

the customer exercises certain rights to terminate the charter of the vessel;

 

   

the customer terminates the charter because we fail to deliver the vessel within a fixed period of time, the vessel is lost or damaged beyond repair, there are serious deficiencies in the vessel or prolonged periods of off-hire, or we default under the charter; or

 

   

a prolonged force majeure event affecting the customer, including damage to or destruction of relevant production facilities, war or political unrest prevents us from performing services for that customer.

Under some of our time charters, either party may terminate the charter contract in the event of war in specified countries or in locations that would significantly disrupt the free trade of the vessel. Some of the time charters covering our vessels require us to return to the charterer, upon the loss of the vessel, all advances paid by the charterer but not earned by us.

Trends and Factors Affecting Our Future Results of Operations

We believe the principal factors that will affect our future results of operations are the economic, regulatory, political and governmental conditions that affect the shipping industry generally and that affect conditions in countries and markets in which our vessels engage in business. Please read “Risk Factors” in our 2020 Annual Report on Form 20-F for a discussion of certain risks inherent in our business. Please also read “Risk Factors” in Navios Acquisition’s 2020 Annual Report on Form 20-F for a discussion of certain risks inherent in our business following the control obtained over Navios Acquisition.

Results of Operations

Overview

The financial condition and the results of operations presented for the three and nine month periods ended September 30, 2021 and 2020 of Navios Partners presented and discussed below include the following entities:

 

Company name

   Vessel name    Country of
incorporation
   2021    2020

Libra Shipping Enterprises Corporation(1)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Alegria Shipping Corporation

   Navios Alegria    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Felicity Shipping Corporation(2)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Gemini Shipping Corporation(3)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Galaxy Shipping Corporation(4)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Aurora Shipping Enterprises Ltd.

   Navios Hope    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Palermo Shipping S.A.(5)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

 

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Fantastiks Shipping Corporation(12)

   Navios Fantastiks    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Sagittarius Shipping Corporation(12)

   Navios Sagittarius    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Hyperion Enterprises Inc.

   Navios Hyperion    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Chilali Corp.

   Navios Aurora II    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Surf Maritime Co.

   Navios Pollux    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Pandora Marine Inc.

   Navios Melodia    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Customized Development S.A.

   Navios Fulvia    Liberia    01/01 – 09/30    01/01 – 09/30

Kohylia Shipmanagement S.A.

   Navios Luz    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Orbiter Shipping Corp.

   Navios Orbiter    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Floral Marine Ltd.

   Navios Buena Ventura    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Golem Navigation Limited(13)

   Navios Soleil    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Kymata Shipping Co.

   Navios Helios    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Joy Shipping Corporation

   Navios Joy    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Micaela Shipping Corporation

   Navios Harmony    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Pearl Shipping Corporation

   Navios Sun    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Velvet Shipping Corporation

   Navios La Paix    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Perigiali Navigation Limited(12)

   Navios Beaufiks    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Finian Navigation Co.(12)

   Navios Ace    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Ammos Shipping Corp.

   Navios Prosperity I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Wave Shipping Corp.

   Navios Libertas    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Casual Shipholding Co.(12)

   Navios Sol    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Avery Shipping Company

   Navios Symphony    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Coasters Ventures Ltd.

   Navios Christine B    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Ianthe Maritime S.A.

   Navios Aster    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Rubina Shipping Corporation

   Hyundai Hongkong    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Topaz Shipping Corporation

   Hyundai Singapore    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Beryl Shipping Corporation

   Hyundai Tokyo    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cheryl Shipping Corporation

   Hyundai Shanghai    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Christal Shipping Corporation

   Hyundai Busan    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Dune Shipping Corp.(6)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Citrine Shipping Corporation

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cavalli Navigation Inc.

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Seymour Trading Limited(32)

   Navios Altair I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Goldie Services Company

   Navios Symmetry    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Andromeda Shiptrade Limited

   Navios Apollon I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Esmeralda Shipping Corporation

   Navios Sphera    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Triangle Shipping Corporation

   Navios Mars    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Oceanus Shipping Corporation(7)(19)

   Castor N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cronus Shipping Corporation(7)

   Protostar N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Leto Shipping Corporation(7)(17)

   Esperanza N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Dionysus Shipping Corporation(7)(30)

   Harmony N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Prometheus Shipping Corporation(7)(18)

   Solar N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Camelia Shipping Inc.(8)

   Navios Camelia    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Anthos Shipping Inc.(8)

   Navios Anthos    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Azalea Shipping Inc.(8)(31)

   Navios Azalea    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Amaryllis Shipping Inc.(8)

   Navios Amaryllis    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Zaffre Shipping Corporation(14)

   Serenitas N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Wenge Shipping Corporation(14)(20)

   Joie N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Sunstone Shipping Corporation(14)

   Copernicus N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Fandango Shipping Corporation(14)

   Unity N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Flavescent Shipping Corporation(14)

   Odysseus N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Emery Shipping Corporation(15)

   Navios Gem    Marshall Is.    01/01 – 09/30    09/30 – 09/30

Rondine Management Corp.(15)

   Navios Victory    Marshall Is.    01/01 – 09/30    09/30 – 09/30

 

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Solange Shipping Ltd.(16)

   Navios Avior    Marshall Is.    03/30 – 09/30   

Mandora Shipping Ltd.(16)

   Navios Centaurus    Marshall Is.    03/30 – 09/30   

Olympia II Navigation Limited

   Navios Domino    Marshall Is.    03/31 – 09/30   

Pingel Navigation Limited

   Navios Delight    Marshall Is.    03/31 – 09/30   

Ebba Navigation Limited

   Navios Destiny    Marshall Is.    03/31 – 09/30   

Clan Navigation Limited

   Navios Devotion    Marshall Is.    03/31 – 09/30   

Sui An Navigation Limited(23)

   Navios Dedication    Marshall Is.    03/31 – 09/30   

Bertyl Ventures Co.

   Navios Azure    Marshall Is.    03/31 – 09/30   

Silvanus Marine Company

   Navios Summer    Marshall Is.    03/31 – 09/30   

Anthimar Marine Inc.

   Navios Amarillo    Marshall Is.    03/31 – 09/30   

Enplo Shipping Limited

   Navios Verde    Marshall Is.    03/31 – 09/30   

Morven Chartering Inc.

   Navios Verano    Marshall Is.    03/31 – 09/30   

Rodman Maritime Corp.

   Navios Spring    Marshall Is.    03/31 – 09/30   

Isolde Shipping Inc.

   Navios Indigo    Marshall Is.    03/31 – 09/30   

Velour Management Corp.

   Navios Vermilion    Marshall Is.    03/31 – 09/30   

Evian Shiptrade Ltd.

   Navios Amaranth    Marshall Is.    03/31 – 09/30   

Theros Ventures Limited

   Navios Lapis    Marshall Is.    03/31 – 09/30   

Legato Shipholding Inc.

   Navios Tempo    Marshall Is.    03/31 – 09/30   

Inastros Maritime Corp.

   Navios Chrysalis    Marshall Is.    03/31 – 09/30   

Zoner Shiptrade S.A.

   Navios Dorado    Marshall Is.    03/31 – 09/30   

Jasmer Shipholding Ltd.

   Navios Nerine    Marshall Is.    03/31 – 09/30   

Thetida Marine Co.

   Navios Magnolia    Marshall Is.    03/31 – 09/30   

Jaspero Shiptrade S.A.

   Navios Jasmine    Marshall Is.    03/31 – 09/30   

Peran Maritime Inc.

   Navios Felicitas    Marshall Is.    03/31 – 09/30   

Nefeli Navigation S.A.

   Navios Unison    Marshall Is.    03/31 – 09/30   

Fairy Shipping Corporation

   Navios Utmost    Marshall Is.    03/31 – 09/30   

Limestone Shipping Corporation

   Navios Unite    Marshall Is.    03/31 – 09/30   

Crayon Shipping Ltd

   Navios Miami    Marshall Is.    03/31 – 09/30   

Chernava Marine Corp.

   Bahamas    Marshall Is.    03/31 – 09/30   

Proteus Shiptrade S.A

   Bermuda    Marshall Is.    03/31 – 09/30   

Vythos Marine Corp.

   Navios Constellation    Marshall Is.    03/31 – 09/30   

Prosperity Shipping Corporation

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Aldebaran Shipping Corporation

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

JTC Shipping and Trading Ltd.(11)

   Holding Company    Malta    01/01 – 09/30    01/01 – 09/30

Navios Maritime Partners L.P.

   N/A    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Maritime Operating LLC.

   N/A    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Partners Finance (US) Inc.

   Co-Borrower    Delaware    01/01 – 09/30    01/01 – 09/30

Navios Partners Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Maritime Containers Sub L.P.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30   

Navios Partners Containers Finance Inc.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30   

Boheme Navigation Company

   Sub-Holding Company    Marshall Is.    03/31 – 09/30   

Navios Partners Containers Inc.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30   

Iliada Shipping S.A.

   Operating Company    Marshall Is.    03/31 – 09/30   

Vinetree Marine Company

   Operating Company    Marshall Is.    03/31 – 09/30   

Afros Maritime Inc.

   Operating Company    Marshall Is.    03/31 – 09/30   

Cavos Navigation Co.(9)

   Navios Libra    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Perivoia Shipmanagement Co.(10)

   Navios Amitie    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Pleione Management Limited(10)

   Navios Star    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Bato Marine Corp.(21)

   TBN 1    Marshall Is.    03/05 – 09/30   

Agron Navigation Company(21)

   TBN 2    Marshall Is.    03/05 – 09/30   

Teuta Maritime S.A.(21)

   TBN 3    Marshall Is.    03/05 – 09/30   

Ambracia Navigation Company(21)

   TBN 4    Marshall Is.    03/05 – 09/30   

Artala Shipping Co.(22)

   TBN 5    Marshall Is.    03/05 – 09/30   

Migen Shipmanagement Ltd.

   Sub-Holding Company    Marshall Is.    03/05 – 09/30   

 

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Bole Shipping Corporation(24)

   Spectrum N    Marshall Is.    04/28 – 09/30   

Brandeis Shipping Corporation(24)

   Ete N    Marshall Is.    05/10 – 09/30   

Buff Shipping Corporation(24)

   Fleur N    Marshall Is.    05/10 – 09/30   

Morganite Shipping Corporation(25)

   TBN 6    Marshall Is.    06/01 – 09/30   

Balder Martitime Ltd.(26)

   Navios Koyo    Marshall Is.    06/04 – 09/30   

Melpomene Shipping Corporation(27)

   TBN 8    Marshall Is.    06/23 – 09/30   

Urania Shipping Corporation(27)

   TBN 9    Marshall Is.    06/23 – 09/30   

Terpsichore Shipping Corporation(28)

   TBN 10    Marshall Is.    06/23 – 09/30   

Erato Shipping Corporation(28)

   TBN 11    Marshall Is.    06/23 – 09/30   

Lavender Shipping Corporation(12) (29)

   Navios Ray    Marshall Is.    06/30 – 09/30   

Nostos Shipmanagement Corp. (12) (29)

   Navios Bonavis    Marshall Is.    06/30 – 09/30   

Navios Maritime Acquisition Corporation

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Navios Acquisition Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Navios Acquisition Finance (US) Inc.

   Co-Issuer of Ship Mortgage Notes    Delaware    08/25 – 09/30   

Navios Maritime Midstream Partners GP LLC

   Holding Company    Marshall Is.    08/25 – 09/30   

Letil Navigation Ltd.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Navios Maritime Midstream Partners Finance (US) Inc.

   Sub-Holding Company    Delaware    08/25 – 09/30   

Aegean Sea Maritime Holdings Inc.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Amorgos Shipping Corporation

   Nave Cosmos    Marshall Is.    08/25 – 09/30   

Andros Shipping Corporation

   Nave Polaris    Marshall Is.    08/25 – 09/30   

Antikithira Shipping Corporation

   Nave Equator    Marshall Is.    08/25 – 09/30   

Antiparos Shipping Corporation

   Nave Atria    Marshall Is.    08/25 – 09/30   

Antipaxos Shipping Corporation

   Nave Dorado    Marshall Is.    08/25 – 09/30   

Antipsara Shipping Corporation

   Nave Velocity    Marshall Is.    08/25 – 09/30   

Crete Shipping Corporation

   Nave Cetus    Marshall Is.    08/25 – 09/30   

Delos Shipping Corporation

   Nave Photon    Marshall Is.    08/25 – 09/30   

Folegandros Shipping Corporation

   Nave Andromeda    Marshall Is.    08/25 – 09/30   

Ikaria Shipping Corporation

   Nave Aquila    Marshall Is.    08/25 – 09/30   

Ios Shipping Corporation

   Nave Cielo    Cayman Islands    08/25 – 09/30   

Iraklia Shipping Corporation

   Bougainville    Marshall Is.    08/25 – 09/30   

Kimolos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Kithira Shipping Corporation

   Nave Orbit    Marshall Is.    08/25 – 09/30   

Kos Shipping Corporation

   Nave Bellatrix    Marshall Is.    08/25 – 09/30   

Lefkada Shipping Corporation

   Nave Buena Suerte    Marshall Is.    08/25 – 09/30   

Leros Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Mytilene Shipping Corporation

   Nave Orion    Marshall Is.    08/25 – 09/30   

Oinousses Shipping Corporation

   Nave Jupiter    Marshall Is.    08/25 – 09/30   

Psara Shipping Corporation

   Nave Luminosity    Marshall Is.    08/25 – 09/30   

Rhodes Shipping Corporation

   Nave Cassiopeia    Marshall Is.    08/25 – 09/30   

Samos Shipping Corporation

   Nave Synergy    Marshall Is.    08/25 – 09/30   

Samothrace Shipping Corporation

   Nave Pulsar    Marshall Is.    08/25 – 09/30   

Serifos Shipping Corporation

   Nave Estella    Marshall Is.    08/25 – 09/30   

Sifnos Shipping Corporation

   Nave Titan    Marshall Is.    08/25 – 09/30   

Skiathos Shipping Corporation

   Nave Capella    Marshall Is.    08/25 – 09/30   

Skopelos Shipping Corporation

   Nave Ariadne    Cayman Islands    08/25 – 09/30   

Skyros Shipping Corporation

   Nave Sextans    Marshall Is.    08/25 – 09/30   

Syros Shipping Corporation

   Nave Alderamin    Marshall Is.    08/25 – 09/30   

Thera Shipping Corporation

   Nave Atropos    Marshall Is.    08/25 – 09/30   

Tilos Shipping Corporation

   Nave Spherical    Marshall Is.    08/25 – 09/30   

Tinos Shipping Corporation

   Nave Rigel    Marshall Is.    08/25 – 09/30   

Zakynthos Shipping Corporation

   Nave Quasar    Marshall Is.    08/25 – 09/30   

Cyrus Investments Corp.

   Baghdad    Marshall Is.    08/25 – 09/30   

Olivia Enterprises Corp.

   Erbil    Marshall Is.    08/25 – 09/30   

Limnos Shipping Corporation

   Nave Pyxis    Marshall Is.    08/25 – 09/30   

Thasos Shipping Corporation

   Nave Equinox    Marshall Is.    08/25 – 09/30   

Agistri Shipping Limited

   Operating Subsidiary    Malta    08/25 – 09/30   

Paxos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Donoussa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Schinousa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

 

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Table of Contents

Alonnisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Makronisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Shinyo Loyalty Limited

   Former Vessel-Owning Company
   Hong Kong    08/25 – 09/30   

Shinyo Navigator Limited

   Former Vessel-Owning Company
   Hong Kong    08/25 – 09/30   

Amindra Navigation Co.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Navios Maritime Midstream Partners L.P.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Navios Maritime Midstream Operating LLC

   Sub-Holding Company    Marshall Is.    08/25 – 09/30   

Shinyo Dream Limited

   Former Vessel-Owning Company    Hong Kong    08/25 – 09/30   

Shinyo Kannika Limited

   Former Vessel-Owning Company    Hong Kong    08/25 – 09/30   

Shinyo Kieran Limited

   Nave Universe    British Virgin Islands    08/25 – 09/30   

Shinyo Ocean Limited

   Former Vessel-Owning Company    Hong Kong    08/25 – 09/30   

Shinyo Saowalak Limited

   Nave Constellation    British Virgin Islands    08/25 – 09/30   

Sikinos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Kerkyra Shipping Corporation

   Nave Galactic    Marshall Is.    08/25 – 09/30   

Doxa International Corp.

   Nave Electron    Marshall Is.    08/25 – 09/30   

Alkmene Shipping Corporation

   Star N    Marshall Is.    08/25 – 09/30   

Aphrodite Shipping Corporation

   Aurora N    Marshall Is.    08/25 – 09/30   

Dione Shipping Corporation

   Lumen N    Marshall Is.    08/25 – 09/30   

Persephone Shipping Corporation

   Hector N    Marshall Is.    08/25 – 09/30   

Rhea Shipping Corporation

   Perseus    Marshall Is.    08/25 – 09/30   

Tzia Shipping Corporation

   TBN 14    Marshall Is.    08/25 – 09/30   

Boysenberry Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Cadmium Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Celadon Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Cerulean Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30   

Kleio Shipping Corporation

   TBN 12    Marshall Is.    08/12 – 09/30   

Polymnia Shipping Corporation

   TBN 13    Marshall Is.    08/12 – 09/30   

Goddess Shiptrade Inc.

   TBN 7    Marshall Is.    08/02 – 09/30   

Navios Acquisition Merger Sub.Inc.

   Merger SPV    Marshall Is.    08/23 – 09/30   

Aramis Navigation Inc. (33)

   Navios Azimuth    Marshall Is.    07/09 – 09/30   

 

(1)

The vessel was sold on December 14, 2018.

(2)

The vessel was sold on December 4, 2018.

(3)

The vessel was sold on December 21, 2017.

(4)

The vessel was sold on April 23, 2019.

(5)

The vessel was sold on April 21, 2017.

(6)

The vessel was sold on January 12, 2017.

(7)

The vessels were acquired on December 13, 2019, following the liquidation of Navios Europe I.

(8)

The vessels were acquired on December 16, 2019.

(9)

The vessel was delivered on July 24, 2019 (see Note 17 - Leases).

(10)

The vessels were delivered on May 28, 2021 and June 10, 2021 (see Note 17 - Leases).

(11)

Not a vessel-owning subsidiary and only holds right to charter-in contracts.

(12)

Vessels under the sale and leaseback transaction (see Note 17 - Leases).

(13)

The vessel was sold on December 10, 2020 (see Note 5 – Vessels, net).

(14)

The vessels were acquired on June 29, 2020, following the liquidation of Navios Europe II (see Note 5 - Vessels, net).

(15)

The vessels were acquired on September 30, 2020, from Navios Holdings (see Note 5 - Vessels, net).

(16)

The vessels were acquired on March 30, 2021, from Navios Holdings (see Note 5 – Vessels, net).

(17)

The vessel was sold on January 13, 2021(see Note 5 – Vessels, net).

(18)

The vessel was sold on January 28, 2021 (see Note 5 – Vessels, net).

(19)

The vessel was sold on February 10, 2021 (see Note 5 – Vessels, net).

(20)

The vessel was sold on March 25, 2021 (see Note 5 – Vessels, net).

(21)

Expected to be delivered by the second half of 2022.

(22)

Expected to be delivered in the second quarter of 2023.

(23)

The vessel was sold on July 31, 2021.

(24)

The vessels were acquired on May 10, 2021 (see Note 5 – Vessels, net).

(25)

Expected to be delivered in the first quarter of 2023.

(26)

The vessel was acquired on June 4, 2021, from Navios Holdings (see Note 5 - Vessels, net).

 

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(27)

Expected to be delivered by the second half of 2023.

(28)

Expected to be delivered by the first half of 2024.

(29)

The vessel was acquired on June 30, 2021, from Navios Holdings (see Note 5 - Vessels, net).

(30)

The vessel was sold on August 16, 2021.

(31)

The vessel was sold on August 13, 2021.

(32)

The vessel was sold on October 29, 2021.

(33)

The vessel was acquired on July 9, 2021, from Navios Holdings (see Note 5 - Vessels, net).

The following table reflects certain key indicators of Navios Partners’ dry cargo and tanker vessels performance for the three and nine month periods ended September 30, 2021 and 2020 (including the Navios Containers’ (as defined herein) fleet and Navios Acquisition’s tanker fleet for the period from April 1, 2021 to September 30, 2021 and from August 26, 2021 to September 30, 2021, respectively).

 

     Three Month
Period Ended
September 30, 2021
(unaudited)
    Three Month
Period Ended
September 30, 2020
(unaudited)
    Nine Month
Period Ended
September 30, 2021
(unaudited)
    Nine Month
Period Ended
September 30, 2020
(unaudited)
 

Available Days(1)

     9,027       4,499       20,521       12,625  

Operating Days(2)

     8,951       4,472       20,342       12,465  

Fleet Utilization(3)

     99.2     99.4     99.1     98.7

Time Charter Equivalent (per day)(4)

   $ 24,447     $ 13,652     $ 20,991     $ 11,917  

Vessels operating at end of periods

     129       53       129       53  

 

(1)

Available days for the fleet represent total calendar days the vessels were in Navios Partners’ possession for the relevant period after subtracting off-hire days associated with scheduled repairs, dry dockings or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues.

(2)

Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.

(3)

Fleet utilization is the percentage of time that Navios Partners’ vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure efficiency in finding employment for vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, dry dockings or special surveys.

(4)

Time Charter Equivalent rate per day (“TCE”) is defined as voyage, time charter revenues and bareboat charter-out revenues (grossed up by currently applicable fixed vessel operating expenses) less voyage expenses during a period divided by the number of available days during the period. The TCE rate per day is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet.

FINANCIAL HIGHLIGHTS

Upon completion of the merger (“NMCI Merger”) with Navios Maritime Containers L.P. (“Navios Containers”) on March 31, 2021, beginning from April 1, 2021, and control obtained over Navios Acquisition on August 25, 2021, beginning from August 26, 2021, the results of operations of Navios Containers and Navios Acquisition are included in Navios Partners’ condensed Consolidated Statements of Operations.

 

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The following table presents consolidated revenue and expense information for the three and nine month periods ended September 30, 2021 and 2020.

 

     Three Month
Period Ended

September 30,
2021

(unaudited)
     Three Month
Period Ended

September 30,
2020

(unaudited)
     Nine Month
Period Ended

September 30,
2021

(unaudited)
     Nine Month
Period Ended

September 30,
2020

(unaudited)
 

Time charter and voyage revenues

   $ 227,957      $ 64,499      $ 445,029      $ 157,538  

Time charter and voyage expenses

     (11,465      (3,609      (19,829      (8,647

Direct vessel expenses

     (10,864      (2,736      (18,007      (7,670

Vessel operating expenses (entirely through related parties transactions)

     (53,952      (24,289      (118,685      (68,424

General and administrative expenses

     (9,491      (4,716      (24,717      (15,844

Depreciation and amortization of intangible assets

     (32,102      (14,153      (67,309      (41,453

Amortization of unfavorable lease terms

     35,576        —          77,602        —    

Gain on sale of vessels

     30,859        —          30,348        —    

Vessels impairment loss

     —          (1,780      —          (8,580

Interest expense and finance cost, net

     (14,446      (5,417      (27,624      (18,636

Interest income

     —          143        859        514  

Impairment of receivable in affiliated company

     —          —          —          (6,900

Other expense, net

     (4,969      (569      (8,864      (858

Equity in net (loss)/ earnings of affiliated companies

     —          (382      80,839        586  

Transaction costs

     (2,870      —          (2,870      —    

Bargain gain

     3,962        —          48,015        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income/ (loss)

   $ 158,195      $ 6,991      $ 394,787      $ (18,374
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss attributable to the noncontrolling interest

     3,859        —          3,859        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income/ (loss) attributable to Navios Partners unitholders

   $ 162,054      $ 6,991      $ 398,646      $ (18,374
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA(1)

   $ 177,185      $ 29,143      $ 426,160      $ 48,814  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA(1)

   $ 145,234      $ 30,923      $ 269,828      $ 64,294  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Surplus (1)

   $ 104,693      $ 16,011      $ 183,059      $ 19,314  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

EBITDA, Adjusted EBITDA and Operating Surplus are non-GAAP financial measures. See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” for a description of EBITDA, Adjusted EBITDA and Operating Surplus and a reconciliation of EBITDA, Adjusted EBITDA and Operating Surplus to the most comparable measure under U.S. GAAP.

Period over Period Comparisons

For the Three Month Period ended September 30, 2021 compared to the Three Month Period ended September 30, 2020

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the three month period ended September 30, 2021 increased by approximately $163.5 million, or 253.5%, to $228.0 million, as compared to $64.5 million for the same period in 2020. The increase in revenue was mainly attributable to the increase in the size of our fleet and to the increase in TCE rate. For the three month period ended September 30, 2021, TCE rate increased by 79.1% to $24,447 per day, as compared to $13,652 per day for the same period in 2020. The available days of the fleet increased by 100.6% to 9,027 days for the three month period ended September 30, 2021, as compared to 4,499 for the same period in 2020 mainly due to the NMCI Merger and the control obtained over Navios Acquisition.

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended September 30, 2021 increased by approximately $7.9 million to $11.5 million, as compared to $3.6 million for the three month period ended September 30, 2020. The increase was mainly attributable to a: (i) $1.7 million increase in brokers’ commissions; (ii) $1.7 million increase in bunkers expenses; (iii) $0.4 million increase in port expenses related to the freight voyages; (iv) $3.1 million increase in bareboat charter-in hire expense; and (iv) $1.0 million net increase in other voyage expenses.

 

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Direct vessel expenses: Direct vessel expenses, for the three month period ended September 30, 2021 increased by $8.2 million, to $10.9 million, as compared to $2.7 million for the three month period ended September 30, 2020. The increase of $8.2 million was mainly attributable to the increase in the size of our fleet and the increased crew related expenses as a result of covid-19 measures.

Vessel operating expenses: Vessel operating expenses for the three month period ended September 30, 2021, increased by approximately $29.7 million, or 122.2%, to $54.0 million, as compared to $24.3 million for the same period in 2020. The increase was due to the increase in the size of our fleet.

General and administrative expenses: General and administrative expenses increased by $4.8 million to $9.5 million for the three month period ended September 30, 2021, as compared to $4.7 million for the three month period ended September 30, 2020. The increase was mainly due to a: (i) $4.0 million increase in administrative fees paid to the Navios Shipmanagement Inc., (the “Manager”) and Navios Tankers Management Inc. (“Tankers Manager” and together with the Manager, the “Managers”) due to the increased number of owned and chartered-in vessels in Navios Partners’ fleet; and (ii) $0.9 million increase in legal and professional fees, as well as audit fees and other administrative expenses. The above increase was partially mitigated by an approximately $0.1 million decrease in stock based compensation expenses.

Depreciation and amortization of intangible assets: Depreciation and amortization amounted to $32.1 million for the three month period ended September 30, 2021, as compared to $14.2 million for the three month period ended September 30, 2020. The increase of approximately $17.9 million was mainly attributable to: (i) an $8.7 million increase due to the delivery of the fleet of Navios Acquisition in Navios Partners owned fleet; (ii) an $8.1 million increase in depreciation expense due to the delivery of the fleet of Navios Containers in Navios Partners owned fleet; (iii) a $2.8 million increase in depreciation expense due to the delivery of eleven vessels in 2021 and 2020; and (iv) a $0.1 million increase in depreciation expense due to vessel additions. The above increase was partially mitigated by a: (i) $1.2 million decrease in depreciation expense of four of our vessels as a result of the impairment charge in the fourth quarter of the fiscal year 2020; and (ii) $0.6 million decrease due to the sale of seven vessels in 2021 and 2020.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $35.6 million for the three month period ended September 30, 2021, related to the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Containers and at the date of obtaining control of Navios Acquisition. There was no amortization of unfavorable lease terms for the corresponding interim period of the previous year.

Gain on sale of vessels: Gain on sale of vessels amounted to $30.9 million for the three month period ended September 30, 2021, relating to the sale of the Harmony N, the Navios Azalea and the Navios Dedication during the third quarter of 2021. There was no gain on sale of vessels for the corresponding interim period of the previous year.

Vessels impairment loss: As of September 30, 2021, we concluded that events and circumstances did not trigger the existence of potential impairment of our vessels, mainly due to the market improvement. As a result, there was no impairment for the three month period ended September 30, 2021. As of September 30, 2020, the Company had a current expectation that the Esperanza N would be sold before the end of its previously estimated useful life, and as a result performed an impairment test of the specific asset group and recorded an impairment loss of $1.8 million.

Interest expense and finance cost, net: Interest expense and finance cost, net, for the three month period ended September 30, 2021 increased by approximately $9.0 million or 166.7% to $14.4 million, as compared to $5.4 million for the three month period ended September 30, 2020. The increase was mainly due to the interest and finance costs of Navios Containers’ credit facilities and financial liabilities recognized following the completion of the NMCI Merger on March 31, 2021, the interest and finance costs of Navios Acquisition’s credit facilities and financial liabilities recognized following the control obtained on August 25, 2021 and due to the increase of the weighted average interest rate for the three month period ended September 30, 2021 to 4.77% from 4.01% for the same period in 2020.

Interest income: Interest income decreased by approximately $0.1 million to $0 for the three month period ended September 30, 2021, as compared to $0.1 million for the three month period ended September 30, 2020.

 

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Table of Contents

Other expense, net: Other expense, net for the three month period ended September 30, 2021 amounted to $5.0 million, as compared to $0.6 million for the three month period ended September 30, 2020, mainly due to the increase in other miscellaneous expenses following the NMCI Merger.

Equity in net earnings/ (loss) of affiliated companies: There was no equity in net earnings of affiliated companies for the three month period ended September 30, 2021 as compared to a $0.4 million loss for the three month period ended September 30, 2020. The amount consisted of the loss related to the investment in Navios Containers.

Transaction costs: Transaction costs amounted to $2.9 million for the three month period ended September 30, 2021 and were related to NNA Merger. There was no transaction costs for the corresponding interim period of the previous year.

Bargain gain: Bargain gain amounted to $4.0 million for the three month period ended September 30, 2021, resulting from the excess of Navios Acquisition’s fair value of the identifiable assets acquired of $211.6 million over the fair value of the consideration transferred of $150.0 million and the fair value of the noncontrolling interest of $57.6 million.

Net income/ (loss): Net income for the three month period ended September 30, 2021 amounted to $158.2 million as compared to $7.0 million net income for the three month period ended September 30, 2020. The increase in net income of $151.2 million was due to the factors discussed above.

Operating surplus: Navios Partners generated operating surplus for the three month period ended September 30, 2021 of $104.7 million, as compared to operating surplus of $16.0 million for the three month period ended September 30, 2020. Operating surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” contained herein).

For the Nine Month Period ended September 30, 2021 compared to the Nine Month Period ended September 30, 2020

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the nine month period ended September 30, 2021 increased by approximately $287.5 million, or 182.5%, to $445.0 million, as compared to $157.5 million for the same period in 2020. The increase in revenue was mainly attributable to the increase in the size of our fleet and to the increase in TCE rate. For the nine month period ended September 30, 2021, TCE rate increased by 76.1% to $20,991 per day, as compared to $11,917 per day in the same period in 2020. The available days of the fleet increased by 62.5% to 20,521 days for the nine month period ended September 30, 2021, as compared to 12,625 in the same period in 2020 mainly due to the NMCI Merger and the control obtained over Navios Acquisition.

Time charter and voyage expenses: Time charter and voyage expenses for the nine month period ended September 30, 2021 increased by approximately $11.2 million to $19.8 million, as compared to $8.6 million for the nine month period ended September 30, 2020. The increase was mainly attributable to a: (i) $3.1 million increase in brokers’ commissions; (ii) $2.2 million increase in bunkers expenses; (iii) $0.7 million increase in port expenses related to the freight voyages; (iv) $3.4 million increase in bareboat charter-in hire expense; and (iv) $1.8 million net increase in other voyage expenses.

Direct vessel expenses: Direct vessel expenses for the nine month period ended September 30, 2021 increased by $10.3 million, to $18.0 million, as compared to $7.7 million for the nine month period ended September 30, 2020. The increase of $10.3 million was mainly attributable to the increase in the size of our fleet and the increased crew related expenses as a result of covid-19 measures.

Vessel operating expenses: Vessel operating expenses for the nine month period ended September 30, 2021, increased by approximately $50.3 million, or 73.5%, to $118.7 million, as compared to $68.4 million for the same period in 2020. The increase was due to the increase in the size of our fleet.

General and administrative expenses: General and administrative expenses increased by $8.9 million to $24.7 million for the nine month period ended September 30, 2021, as compared to $15.8 million for the nine month period ended September 30, 2020. The increase was mainly due to a: (i) $7.4 million increase in administrative fees paid to the Managers due to the increased number of owned and chartered-in vessels in Navios Partners’ fleet; and (ii) $1.8 million increase in legal and professional fees, as well as audit fees and other administrative expenses. The above increase was partially mitigated by an approximately $0.3 million decrease in stock based compensation expenses.

 

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Depreciation and amortization of intangible assets: Depreciation and amortization amounted to $67.3 million for the nine month period ended September 30, 2021, as compared to $41.5 million for the nine month period ended September 30, 2020. The increase of $25.8 million was mainly attributable to: (i) a $16.4 million increase in depreciation expense due to the delivery of the fleet of Navios Containers in Navios Partners owned fleet; (ii) an $8.7 million increase due to the delivery of the fleet of Navios Acquisition in Navios Partners owned fleet; (iii) a $5.6 million increase in depreciation expense due to the delivery of 15 vessels in 2021 and 2020; and (iv) a $0.3 million increase in depreciation expense due to vessel additions. The above increase was partially mitigated by: (i) an approximately $3.7 million decrease in depreciation expense of four of our vessels as a result of the impairment charge in the fourth quarter of the fiscal year 2020; and (ii) a $1.5 million decrease due to the sale of seven vessels in 2021 and 2020.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $77.6 million for the nine month period ended September 30, 2021, related to the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Containers and at the date of obtaining control of Navios Acquisition. There was no amortization of unfavorable lease terms for the corresponding interim period of the previous year.

Gain on sale of vessels: Gain on sale of vessels amounted to $30.3 million for the nine month period ended September 30, 2021, relating to a gain on sale of the Harmony N, the Navios Azalea, the Navios Dedication, the Esperanza N, the Castor N and the Solar N amounted to $31.7 million, partially mitigated by a loss on sale of the Joie N amounted to $1.4 million. There was no gain on sale of vessels for the corresponding interim period of the previous year.

Vessels impairment loss: As of September 30, 2021, we concluded that events and circumstances did not trigger the existence of potential impairment of our vessels, mainly due to the market improvement. As a result, there was no impairment for the nine month period ended September 30, 2021. During the nine months ended September 30, 2020, Navios Partners recognized: (i) an impairment loss of $6.8 million of three containerships as the undiscounted projected cash flows did not exceed the vessels’ carrying value; and (ii) an impairment loss of $1.8 million related to the sale of the Esperanza N, as the Company had a current expectation that would be sold before the end of its previously estimated useful life (see Note 5 – Vessels, net).

Impairment of receivable in affiliated company: Impairment of receivable in affiliated company for the nine month period ended September 30, 2020 amounted to $6.9 million, related to the other-than-temporary impairment recognized in the Navios Partners’ receivable from Navios Europe II. There was no impairment for the corresponding interim period as of September 30, 2021.

Interest expense and finance cost, net: Interest expense and finance cost, net, for the nine month period ended September 30, 2021 increased by approximately $9.0 million or 48.4% to $27.6 million, as compared to $18.6 million for the nine month period ended September 30, 2020. The increase was mainly due to the interest and finance costs of Navios Containers’ credit facilities and financial liabilities recognized following the completion of the NMCI Merger on March 31, 2021 and the interest and finance costs of Navios Acquisition’s credit facilities and financial liabilities recognized following the control obtained on August 25, 2021. The above increase was partially mitigated by a decrease of the weighted average interest rate for the nine month period ended September 30, 2021 to 4.29% from 4.69% for the same period in 2020.

Interest income: Interest income increased by approximately $0.4 million to $0.9 million for the nine month period ended September 30, 2021, as compared to $0.5 million for the nine month period ended September 30, 2020.

Other expense, net: Other expense, net for the nine month period ended September 30, 2021 amounted to $8.9 million, as compared to $0.9 million for the nine month period ended September 30, 2020, mainly due to the increase in claim expenses and other miscellaneous expenses following the NMCI Merger.

 

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Equity in net earnings/ (loss) of affiliated companies: Equity in net earnings of affiliated companies for the nine month period ended September 30, 2021 amounted to $80.8 million as compared to $0.6 million for the nine month period ended September 30, 2020. The amount of $80.8 million is the gain from equity in net earnings resulting from remeasurement of existing interest held in Navios Containers. As of March 31, 2021, Navios Partners previously held interest of 35.7% in Navios Containers was remeasured to a fair value of $107.0 million, resulting in revaluation gain of $75.4 million which along with the equity gain of approximately $5.4 million from the operations of Navios Containers up to the closing date aggregate to a gain on acquisition of control in the amount of $80.8 million.

Transaction costs: Transaction costs amounted to $2.9 million for the nine month period ended September 30, 2021 and were related to the NNA Merger. There was no transaction costs for the corresponding interim period of the previous year.

Bargain gain: Bargain gain amounted to $48.0 million for the nine month period ended September 30, 2021, resulting from the excess Navios Containers’ fair value of the identifiable assets acquired of $342.7 million over the total purchase price consideration of $298.6 million and Navios Acquisition’s fair value of the identifiable assets acquired of $211.6 million over the fair value of the consideration transferred of $150.0 million and the fair value of the noncontrolling interest of $57.6 million.

Net income/ (loss): Net income for the nine month period ended September 30, 2021 amounted to $394.8 million as compared to $18.4 million net loss for the nine month period ended September 30, 2020. The increase in net income of $413.2 million was due to the factors discussed above.

Operating surplus: Navios Partners generated operating surplus for the nine month period ended September 30, 2021 of $183.1 million, as compared to operating surplus of $19.3 million for the nine month period ended September 30, 2020. Operating surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” contained herein).

Liquidity and Capital Resources

In addition to distributions on our units, our primary short-term liquidity needs are to fund general working capital requirements, cash reserve requirements including those under our credit facilities and debt service, while our long-term liquidity needs primarily relate to expansion and investment capital expenditures and other maintenance capital expenditures and debt repayment. Expansion capital expenditures are primarily for the purchase or construction of vessels to the extent the expenditures increase the operating capacity of, or revenue generated by, our fleet, while maintenance capital expenditures primarily consist of drydocking expenditures and expenditures to replace vessels in order to maintain the operating capacity of or revenue generated by our fleet. Investment capital expenditures are those capital expenditures that are neither maintenance capital expenditures nor expansion capital expenditures. We anticipate that our primary sources of funds for our short-term liquidity needs will be cash flows from our equity offerings, operations, proceeds from asset sales, long-term bank borrowings and other debt raisings. Based on internal forecasts and projections that take into account reasonably possible changes in our trading performance, we believe that the Company has adequate financial resources to continue in operation and meet its financial commitments, including but not limited to capital expenditures and debt service obligations, for a period of at least twelve months from the date of issuance of these interim condensed consolidated financial statements. Generally, our long-term sources of funds derive from cash from operations, long-term bank borrowings and other debt or equity financings to fund acquisitions and expansion and investment capital expenditures, including opportunities we may pursue under the Omnibus Agreement, as defined herein. We cannot assure you that we will be able to secure adequate financing or to obtain additional funds on favorable terms, to meet our liquidity needs.

Cash deposits and cash equivalents in excess of amounts covered by government provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Partners does maintain cash deposits and equivalents in excess of government provided insurance limits. Navios Partners also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

Navios Partners may use funds to repurchase its outstanding common units and/or indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms Navios Partners deems appropriate and subject to its cash requirements for other purposes, compliance with the covenants under Navios Partners’ credit facilities, and other factors management deems relevant.

 

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On November 18, 2016, Navios Partners entered into a Continuous Offering Program Sales Agreement (the “$25.0m Sales Agreement”) for the issuance and sale from time to time through its agent common units having an aggregate offering price of up to $25.0 million. The $25.0m Sales Agreement was amended on August 3, 2020 to address the updated shelf registration statement pursuant to which sales are made. As of November 25, 2021, since the commencement of the amended $25.0m Sales Agreement, Navios Partners has issued 1,286,857 units and received net proceeds of $23.9 million. Pursuant to the issuance of the common units, Navios Partners issued 26,265 general partnership units to its General Partner in order to maintain its 2.0% general partner interest. The net proceeds from the issuance of the general partnership units were approximately $0.5 million.

On April 9, 2021, Navios Partners entered into a Continuous Offering Program Sales Agreement (“$75m Sales Agreement”) for the issuance and sale from time to time through its agent common units having an aggregate offering price of up to $75.0 million. As of November 25, 2021, since the commencement of the $75.0m Sales Agreement, Navios Partners has issued 2,437,624 units and received net proceeds of $73.1 million. Pursuant to the issuance of the common units, Navios Partners issued 49,747 general partnership units to its General Partner in order to maintain its 2.0% general partner interest. The net proceeds from the issuance of the general partnership units were approximately $1.5 million.

On May 21, 2021, Navios Partners entered into a new Continuous Offering Program Sales Agreement (“$110m Sales Agreement”) for the issuance and sale from time to time through its agent common units having an aggregate offering price of up to $110.0 million. As of November 25, 2021, since the commencement of the $110.0m Sales Agreement, Navios Partners has issued 3,963,249 units and received net proceeds of $103.7 million. Pursuant to the issuance of the common units, Navios Partners issued 80,883 general partnership units to its General Partner in order to maintain its 2.0% general partner interest. The net proceeds from the issuance of the general partnership units were approximately $2.2 million.

Long-Term Debt Obligations

Navios Partners’ long-term borrowings are presented under the captions “Long-term financial liabilities, net”, “Long-term debt, net”, “Current portion of financial liabilities, net” and “Current portion of long-term debt, net”. As of September 30, 2021 and December 31, 2020, total borrowings, net of deferred finance costs amounted to $1,425.2 million and $486.9 million, respectively. The current portion of long-term borrowings, net amounted to $253.3 million at September 30, 2021 and $201.8 million at December 31, 2020.

Credit Facilities

As of September 30, 2021, the Company had secured credit facilities with various banks with a total outstanding balance of $876.0 million. The purpose of the facilities was to finance the acquisition of vessels or refinance existing indebtedness. All of the facilities are denominated in U.S. dollars and bear interest based on LIBOR plus spread ranging from 230 bps to 390 bps, for senior facilities, per annum. The facilities are repayable in either semi-annual or quarterly installments, followed by balloon payments with maturities, ranging from December 2021 to August 2026.

DNB Credit Facility: On August 19, 2021, Navios Partners entered into a new credit facility with DNB Bank ASA, (the “DNB Credit Facility”) for a total amount of up to $18.0 million, in order to finance part of the acquisition cost of the Navios Azimuth. On August 20, 2021, the full amount was drawn. The new credit facility is repayable in 20 consecutive quarterly installments of $0.64 million each, together with a final balloon payment of $5.2 million to be paid on the last repayment date. The facility matures in the third quarter of 2026 and bears interest at LIBOR plus 285 bps per annum. As of September 30, 2021, the total outstanding balance was $18.0 million.

NBG Credit Facility: On June 17, 2021, Navios Partners entered into a new credit facility with National Bank of Greece (the “NBG Credit Facility”) for a total amount of up to $43.0 million, in order to refinance the existing credit facilities of six dry bulk vessels. On June 18, 2021, the full amount was drawn. In August 2021, following the sale of one 2005-built Panamax vessel of 74,759 dwt, the amount of $6.0 million was prepaid. Following the prepayment, the credit facility is repayable in three consecutive quarterly installments of $1.3 million each followed by 16 consecutive quarterly installments of $1.1 million each, together with a final balloon payment of $14.6 million to be paid on the last repayment date. The facility matures in the second quarter of 2026 and bears interest at LIBOR plus 300 bps per annum. As of September 30, 2021, the total outstanding balance was $35.7 million.

 

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CACIB Credit Facility: On July 4, 2019, Navios Partners entered into a new credit facility with Credit Agricole Corporate and Investment Bank (“CACIB”), (the “CACIB $52.8m Credit Facility”) of up to $52.8 million. On August 25, 2021, Navios Partners prepaid $11.4 million of the CACIB $52.8m Credit Facility and released one vessel from the collateral package of the credit facility. The Company entered into a new sale and leaseback agreement of $15.0 million for the released vessel (see also Financial Liabilities below).

Hellenic Bank Credit Facility: On April 23, 2021, Navios Partners extended the credit facility with Hellenic Bank Public Company Limited (the “Hellenic Credit Facility”) dated June 25, 2020 for an amount of $8.9 million in order to partially finance the acquisition of one containership from Navios Acquisition. On April 28, 2021, the amount of $8.9 million was drawn. In August 2021, following the sale of one 2006-built containership of 2,824 TEU, the amount of $4.0 million was prepaid. Following the prepayment, the Hellenic Credit Facility is repayable in one quarterly instalment of approximately $1.4 million, two consecutive quarterly installments of $0.9 million each, two consecutive quarterly installments of $0.4 million each, seven consecutive quarterly installments of approximately$0.3 million each and one quarterly installment of approximately $0.4 million with a final balloon payment of $5.0 million to be repaid on the last repayment date. The credit facility matures in the fourth quarter of 2024 and bears interest at LIBOR plus 300 and 350 bps per annum for each tranche respectively. As of September 30, 2021, the total outstanding balance was $11.5 million.

Upon obtaining control of Navios Acquisition, Navios Partners assumed the following credit facilities:

8 1/8% First Priority Ship Mortgages: On August 26, 2021, Navios Acquisition called for redemption by delivery all of its outstanding Ship Mortgage Notes by delivery of a redemption notice to the registered holders of the Ship Mortgage Notes and remitted to the indenture trustee the aggregate redemption price payable to the holders of the Ship Mortgage Notes to satisfy and discharge Navios Acquisition’s obligations under the indenture relating to the Ship Mortgage Notes. Navios Acquisition funded the approximately $397.5 million aggregate redemption price with net proceeds from (i) the sale by Navios Acquisition pursuant to the NNA Merger (in reliance on the exemption from registration provided for under Section 4(a)(2) of the Securities Act) of 44,117,647 shares of Navios Acquisition common stock to Navios Partners for an aggregate purchase price of $150.0 million (the “Equity Issuance”), and (ii) borrowings under the HCB Loan Agreement and BNP Loan Agreement (as defined below). The Ship Mortgage Notes were redeemed in full on September 25, 2021.

DVB Bank S.E. and Credit Agricole Corporate and Investment Bank: On December 29, 2011, Navios Acquisition entered into a loan agreement with DVB Bank SE and Credit Agricole Corporate and Investment Bank of up to $56.3 million (divided into two tranches of $28.1 million each) to partially finance the purchase price of two MR2 product tanker vessels. Each tranche of the facility is repayable in 32 quarterly installments of $0.39 million each with a final balloon payment of $15.6 million to be repaid on the last repayment date. The repayment started three months after the delivery of the respective vessel and bears interest at a rate of LIBOR plus: (a) up to but not including the drawdown date, 175 bps per annum; (b) thereafter until, but not including, the tenth repayment date, 250 bps per annum; and (c) thereafter 300 bps per annum. The maturity date of each of the tranches of the loan is in the second and third quarters of 2022. As of September 30, 2021, an amount of $34.0 million was outstanding.

BNP Paribas S.A. Bank: On December 18, 2015, Navios Acquisition, through certain of its wholly owned subsidiaries, entered into a term loan facility agreement of up to $44.0 million with BNP Paribas, as agent and the lenders named therein, for the partial post-delivery financing of a LR1 product tanker and a MR2 product tanker. The facility is repayable in 12 equal consecutive semi-annual installments in the amount of $2.0 million in aggregate, with a final balloon payment of $20.0 million to be repaid on the last repayment date. The maturity date of the loan is in December 2021. The loan bears interest at LIBOR plus 230 bps per annum. As of September 30, 2021, an amount of $22.0 million was outstanding under this facility.

Hamburg Commercial Bank AG: In June 2017, Navios Acquisition entered into a loan facility for an amount of $24.0 million to refinance the credit facility with ABN AMRO Bank N.V. of its two chemical tankers. The facility was repayable in 17 equal consecutive quarterly installments of $0.6 million each, with a final balloon payment of the balance to be repaid on the last repayment date. The facility was scheduled to mature in September 2021 and bore interest at LIBOR plus 300 bps per annum. In August 2021, the outstanding balance of the loan amounted to $14.8 million which was prepaid and refinanced.

 

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Hamburg Commercial Bank AG: In October 2019, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of up to $31.8 million in order to refinance one VLCC. The facility was repayable in four quarterly installments of $0.8 million each with a final balloon payment of $28.4 million repayable on the last repayment date. The facility was expected to mature in October 2020 and bore interest at LIBOR plus 280 bps per annum. In October 2020, Navios Acquisition extended the maturity date of the loan to October 2024. The remaining balance of the facility was repayable in 16 quarterly installments of $0.8 million each with a final balloon payment of $14.9 million repayable on the last repayment date and bore interest at LIBOR plus 390 bps per annum. In August 2021, the outstanding balance of the loan amounted to $25.9 million which was prepaid and refinanced.

Eurobank S.A: In June 2020, Navios Acquisition entered into a loan agreement with Eurobank S.A. of $20.8 million in order to refinance two LR1s. The facility is repayable in 16 quarterly installments of $0.80 million each with a final balloon payment of $8.0 million repayable on the last repayment date. The facility matures in June 2024 and bears interest at LIBOR plus 300 bps per annum. As of September 30, 2021, an amount of $16.8 million was outstanding under this facility.

Hamburg Commercial Bank AG: In August 2021, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of $190.2 million (“HCB Loan Agreement”) in order to partially refinance the existing indebtedness of seven tankers vessels. The facility consist of two advances, the senior advance and the junior advance. The senior advance is repayable in 15 equal consecutive quarterly installments in the amount of $4.5 million in aggregate, with a final balloon payment of $91.4 million to be repaid on the last repayment date. The maturity of the senior advance is in April 2025 and bears interest at LIBOR plus 390 bps per annum. The junior advance is repayable in 11 equal consecutive quarterly installments in the amount of $2.8 million in aggregate. The maturity of the junior advance is in April 2024 and bears interest at LIBOR plus 700 bps per annum. As of September 30, 2021, an amount of $190.2 million was outstanding under this facility.

BNP Paribas S.A. Bank: In August 2021, Navios Acquisition, entered into a loan facility agreement of up to $96.0 million with BNP Paribas (“BNP Loan Agreement”), in order to partially refinance the existing indebtedness of five tanker vessels. The facility is repayable in eight equal consecutive quarterly installments in the amount of $4.6 million in aggregate, with a final balloon payment of $59.0 million to be repaid on the last repayment date. The maturity date of the loan is in August 2023. The loan bears interest at LIBOR plus 355 bps per annum. As of September 30, 2021, an amount of $96.0 million was outstanding under this facility.

Amounts drawn are secured by first preferred mortgages on certain Navios Partners’ vessels and other collateral and are guaranteed by the respective vessel-owning subsidiaries. The credit facilities and certain financial liabilities contain a number of restrictive covenants that prohibit or limit Navios Partners from, among other things: incurring or guaranteeing indebtedness; entering into affiliate transactions; charging, pledging or encumbering the vessels; changing the flag, class, management or ownership of Navios Partners’ vessels; changing the commercial and technical management of Navios Partners’ vessels; selling or changing the beneficial ownership or control of Navios Partners’ vessels; not maintaining Navios Holdings’ (or its affiliates) ownership in Navios Partners of at least 5.0%; and subordinating the obligations under the credit facilities to any general and administrative costs relating to the vessels, including the fixed daily fee payable under the management agreement.

Financial Liabilities

On August 16, 2021, the Company entered into a new sale and leaseback agreement of $15.0 million, with an unrelated third party for the Navios Pollux, a 2009-built Capesize vessel of 180,727 dwt. Navios Partners has a purchase obligation to acquire the vessel at the end of the lease term and under ASC 842-40, the transfer of the vessel was determined to be a failed sale. In accordance with ASC 842-40, the Company did not derecognize the respective vessel from its balance sheet and accounted for the amount received under the sale and leaseback agreement as a financial liability. On August 25, 2021, the amount of $15.0 million was drawn. Navios Partners is obligated to make 72 consecutive monthly payments of approximately $0.19 million each, commencing on August 2021. The agreement matures in the third quarter of 2027, with a purchase obligation of $5.0 million on the last repayment date. As of September 30, 2021, the outstanding balance under the sale and leaseback agreement of the Navios Pollux was $14.8 million.

 

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On June 18, 2021, the Company entered into a new sale and leaseback agreement of $15.0 million, with unrelated third party for the Navios Bonavis, a 2009-built Capesize vessel of 180,022 dwt. Navios Partners has a purchase obligation to acquire the vessel at the end of the lease term and under ASC 842-40, the transfer of the vessel was determined to be a failed sale. In accordance with ASC 842-40, the Company did not derecognize the respective vessel from its balance sheet and accounted for the amount received under the sale and leaseback agreement as a financial liability. On June 30, 2021, the amount of $15.0 million was drawn. Navios Partners is obligated to make 72 consecutive monthly payments of approximately $0.19 million each, commencing on June 2021. The agreement matures in the second quarter of 2027, with a purchase obligation of $5.0 million on the last repayment date. As of September 30, 2021, the outstanding balance under the sale and leaseback agreement of the Navios Bonavis was $14.5 million.

On June 18, 2021, the Company entered into a new sale and leaseback agreement of $18.5 million, with unrelated third party for the Navios Ray, a 2012-built Capesize vessel of 179,515 dwt. Navios Partners has a purchase obligation to acquire the vessel at the end of the lease term and under ASC 842-40, the transfer of the vessel was determined to be a failed sale. In accordance with ASC 842-40, the Company did not derecognize the respective vessel from its balance sheet and accounted for the amount received under the sale and leaseback agreement as a financial liability. On June 30, 2021, the amount of $18.5 million was drawn. Navios Partners is obligated to make 108 consecutive monthly payments of approximately $0.19 million each, commencing on June 2021. The agreement matures in the second quarter of 2030, with a purchase obligation of $5.0 million on the last repayment date. As of September 30, 2021, the outstanding balance under the sale and leaseback agreement of the Navios Ray was $18.1 million.

Upon obtaining control of Navios Acquisition, Navios Partners assumed the following financial liabilities:

On March 31, 2018, Navios Acquisition entered into a $71.5 million sale and leaseback agreement with unrelated third parties to refinance the outstanding balance of the existing facility on four product tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was accounted for as a failed sale. In accordance with ASC 842-40 the Company did not derecognize the respective vessels from its balance sheet and accounted for the amounts received under sale and lease back agreement as a financial liability. The agreement will be repayable in 24 equal consecutive quarterly installments of $1.5 million each, with a repurchase obligation of $35.8 million on the last repayment date. The sale and leaseback agreement matures in April 2024 and bears interest at LIBOR plus 305 bps per annum. In April 2018, the Company drew $71.5 million under this agreement. As of September 30, 2021, the outstanding balance under this agreement was $50.6 million.

In March and April 2019, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $103.2 million in order to refinance $50.3 million outstanding on the existing facility on three product tankers and to finance two product tankers that were previously financed by Eurobank Ergasias S.A. and were fully prepaid in March 2019 by the amount of $ 32.2 million. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. Following a prepayment made in April 2021, the agreements will be repayable in 17 equal consecutive quarterly installments of $2.3 million each followed by one quarterly installment of $1.4 million, with a purchase obligation of $34.0 million to be repaid on the last repayment date. The sale and leaseback agreements mature in March and April 2026 respectively, and bear interest at LIBOR plus 350 bps per annum. As of September 30, 2021, the outstanding balance under these agreements was $73.9 million.

In August 2019, Navios Acquisition entered into an additional sale and leaseback agreement of $15.0 million, with unrelated third parties in order to refinance one product tanker. Navios Acquisition has a purchase option in place and an assessment has been performed indicating that the likelihood of the vessel remaining in the property of the lessor is remote. In such a case, the buyer-lessor does not obtain control of the vessel and under ASC 842-40, the transaction was determined to be a failed sale. Navios Acquisition is obligated to make 60 consecutive monthly payments of approximately $0.16 million, commencing as of August 2019. The agreement matures in August 2024 and bears interest at LIBOR plus 275 bps per annum. As of September 30, 2021, the outstanding balance under this agreement was $10.9 million.

In September 2019, Navios Acquisition entered into additional sale and leaseback agreements with unrelated third parties for $47.2 million in order to refinance three product tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. Following a prepayment made in April 2021, the agreements will be repaid through periods ranging from four to seven years in consecutive quarterly installments of up to $1.4 million each, with a purchase obligation of $18.0 million to be repaid on the last repayment date. The agreements mature in September 2023 and September 2026 and bear interest at LIBOR plus a margin ranging from 350 bps to 360 per annum, depending on the vessel financed. As of September 30, 2021, the outstanding balance under this agreement was $33.7 million.

 

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In October 2019, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $90.8 million in order to refinance six product tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. The agreements will be repaid through periods ranging from three to eight years in consecutive quarterly installments of up to $2.8 million each, with a repurchase obligation of up to $25.8 million in total. The sale and leaseback arrangement bears interest at LIBOR plus a margin ranging from 335 bps to 355 bps per annum, depending on the vessel financed. As of September 30, 2021, the outstanding balance under this agreement was $71.0 million.

In June 2020, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $72.1 million in order to refinance one MR1, one MR2 and two LR1s. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. Following a prepayment made in April 2021, the agreements will be repaid through periods ranging from four to seven years in consecutive quarterly installments of up to $1.8 million each, with a repurchase obligation of up to $23.9 million in total. The sale and leaseback arrangements bear interest at LIBOR plus a margin ranging from 390 bps to 410 bps per annum, depending on vessel financed. As of September 30, 2021, the outstanding balance under the agreements was $58.3 million.

As of September 30, 2021, the deposits under the sale and leaseback agreements were $9.1 million, and are presented under “Other long-term assets” in the condensed Consolidated Balance Sheets.

The Company’s credit facilities and certain financial liabilities also require compliance with a number of financial covenants, including: (i) maintain a required security ranging over 105% to 140%; (ii) minimum free consolidated liquidity in an amount equal to $0.4 million to $1.0 million per owned vessel and a number of vessels as defined in Navios Partners’ and Navios Acquisition’s credit facilities and financial liabilities, which includes minimum liquidity requirements of Navios Acquisition ranging from $10.0 million to $40.0 million; (iii) maintain a ratio of EBITDA to interest expense of at least 2.00:1.00; (iv) maintain a ratio of total liabilities or total debt to total assets (as defined in the Company’s credit facilities) ranging from less than 0.75 to 0.80; and (v) maintain a minimum net worth ranging from $30.0 million to $135.0 million.

It is an event of default under the credit facilities and certain financial liabilities if such covenants are not complied with in accordance with the terms and subject to the prepayments or cure provisions of the facilities.

As of September 30, 2021, Navios Partners was in compliance with the financial covenants and/or the prepayments and/or the cure provisions, as applicable, in each of its credit facilities and certain financial liabilities.

The following table presents cash flow information derived from the unaudited condensed Consolidated Statements of Cash Flows of Navios Partners for the nine month periods ended September 30, 2021 and 2020.

 

     Nine Month
Period Ended
September 30, 2021
($ ‘000)
(unaudited)
     Nine Month
Period Ended
September 30,
2020 ($‘000)

(unaudited)
 

Net cash provided by operating activities

   $ 148,153      $ 68,700  

Net cash used in investing activities

     (103,052      (78,346

Net cash provided by financing activities

     65,351        9,859  
  

 

 

    

 

 

 

Increase in cash, cash equivalents and restricted cash

   $ 110,452      $ 213  
  

 

 

    

 

 

 

Cash provided by operating activities for the nine month period ended September 30, 2021 as compared to the cash provided by operating activities for the nine month period ended September 30, 2020

Net cash provided by operating activities increased by $79.5 million to $148.2 million for the nine month period ended September 30, 2021, as compared to $68.7 million for the same period in 2020. In determining net cash provided by operating activities, net loss is adjusted for the effects of certain non-cash items as discussed below.

The aggregate adjustments to reconcile net income to net cash provided by operating activities was a $157.5 million net loss for the nine month period ended September 30, 2021, which consisted mainly of the following adjustments: (i) $80.8 million equity in net earnings of affiliated companies; (ii) $77.6 million amortization of unfavorable lease terms; (iii) $48.0 million bargain gain related to the NMCI Merger and the control obtained over Navios Acquisition; (iv) $30.3 million gain on sale of assets; (v) $1.7 million non-cash accrued interest income and amortization of deferred revenue; and (vi) $0.2 million amortization of operating lease right-of-use asset. These adjustments were partially mitigated by: (i) $67.3 million depreciation and amortization of intangible assets; (ii) $11.0 million amortization of deferred dry dock and special survey costs; (iii) $2.5 million amortization and write-off of deferred finance costs and discount; and (iv) $0.3 million stock based compensation.

 

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The net cash outflow resulting from the change in operating assets and liabilities of $89.1 million for the nine month period ended September 30, 2021 resulted from a $37.5 million decrease in amounts due to related parties, a $32.5 million in payments for dry dock and special survey costs, an $18.2 million increase in amounts due from related parties, a $6.6 million increase in prepaid expenses and other current assets, a $5.6 million decrease in accrued expenses and a $5.0 million increase in accounts receivable. This was partially mitigated by a $13.3 million increase in deferred revenue and a $3.0 million increase in accounts payable.

The aggregate adjustments to reconcile net loss to net cash provided by operating activities was a $65.8 million non-cash net gain for the nine month period ended September 30, 2020, which consisted mainly of the following adjustments: $41.5 million depreciation and amortization, $6.9 million loss related to the other-than-temporary impairment recognized in the Navios Partners’ receivable from Navios Europe II, $6.8 million impairment loss related to three containerships and $1.8 million impairment loss in relation to the sale of the Esperanza N, $0.7 million amortization of operating lease right-of-use asset, $1.6 million amortization and write-off of deferred finance costs and discount, $7.6 million amortization of deferred dry dock and special survey costs, $0.7 million equity compensation expense, $0.6 million equity in net earnings of affiliated companies and $1.2 million non–cash accrued interest income and amortization of deferred revenue.

The net cash inflow resulting from the change in operating assets and liabilities of $21.3 million for the nine month period ended September 30, 2020 resulted from a $31.9 million increase in amounts due to related parties, a $15.6 million decrease in amounts due from related parties, a $0.4 million decrease in accounts receivable and a $0.2 million increase in accrued expenses. This was partially mitigated by a $2.0 million increase in prepaid expenses and other current assets, a $0.4 million decrease in deferred revenue, a $2.3 million decrease in accounts payable, a $0.8 million decrease in operating lease liabilities short and long term and a $21.3 million in payments for dry dock and special survey costs.

Cash used in investing activities for the nine month period ended September 30, 2021 as compared to the cash used in investing activities for the nine month period ended September 30, 2020

Net cash used in investing activities increased by $24.8 million to $103.1 million for the nine month period ended September 30, 2021, as compared to $78.3 million for the same period in 2020.

Cash used in investing activities of approximately $103.1 million for the nine month period ended September 30, 2021 was mainly due to: (i) $213.8 million relating to vessels acquisitions and additions; and (ii) $48.5 million relating to deposits for the option to acquire seven bareboat charter-in vessels, four newbuilding containership vessels and capitalized expenses. This was partially mitigated by: (i) $107.6 million of proceeds related to the sale of seven vessels; (ii) $42.7 million cash acquired from Navios Containers and Navios Acquisition following the NMCI Merger and the control obtained over Navios Acquisition, respectively; and (iii) an $8.9 million of proceeds from the senior unsecured notes of HMM.

Cash used in investing activities of $78.3 million for the nine month period ended September 30, 2020 was mainly due to: (i) $71.4 million relating to vessel acquisitions and additions; and (ii) $10.4 million relating to deposits for the option to acquire two bareboat charter-in vessels and capitalized expenses. This was partially mitigated by $3.5 million of proceeds from the note receivable related to the sale of the MSC Cristina.

Cash provided by financing activities for the nine month period ended September 30, 2021 as compared to cash provided byfinancing activities for the nine month period ended September 30, 2020

Net cash provided by financing activities increased by $55.5 million to $65.4 million for the nine month period ended September 30, 2021, as compared to $9.9 million for the same period in 2020.

Cash provided by financing activities of $65.4 million for the nine month period ended September 30, 2021 was mainly due to: (i) $662.6 million of proceeds from the new credit facilities and sale and leaseback agreements; and (ii) $206.6 million of proceeds from the issuance of 7,330,222 common units and 315,586 additional general partner units related to the Continuous Offering Program Sales Agreements and the acquisition of Navios Containers. This was partially mitigated by: (i) loans and financial liabilities repayments of $789.4 million; (ii) payment of $11.3 million of deferred finance fees relating to the new credit facilities and sale and leaseback agreements; and (iii) payment of a total cash distributions of $3.1 million.

 

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Cash provided by financing activities of $9.9 million for the nine month period ended September 30, 2020 was mainly due to: (i) $79.5 million of proceeds from the new credit facilities; and (ii) $1.8 million of proceeds from the issuance of 280,318 common units and 5,546 additional general partner units related to the Continuous Offering Program Sales Agreement. This was partially offset by: (i) payment of a total cash distributions of $7.3 million; (ii) loans and financial liabilities repayments of $63.3 million; and (iii) a payment of $0.8 million of deferred finance costs relating to the new credit facilities.

Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus

 

                                                                                                               
     Three Month
Period Ended
September 30, 2021
($ ‘000)
(unaudited)
    Three Month
Period Ended
September 30, 2020
($ ‘000)
(unaudited)
    Nine Month
Period Ended
September 30, 2021
($ ‘000)
(unaudited)
    Nine Month
Period Ended
September 30, 2020
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 70,904     $ 21,025     $ 148,153     $ 68,700  

Net increase in operating assets

     32,241       11,794       62,341       8,027  

Net decrease/ (increase) in operating liabilities

     21,540       (6,152     26,789       (29,333

Net interest cost

     14,446       5,274       26,765       18,122  

Amortization and write-off of deferred finance cost

     (900     (552     (2,468     (1,570

Amortization of operating lease right-of-use asset

     126       (244     187       (703

Non cash accrued interest income and amortization of deferred revenue

     284       400       1,702       1,188  

Stock-based compensation expense

     (136     (240     (370     (723

Gain on sale of vessels

     30,859       —         30,348       —    

Vessels impairment loss

     —         (1,780     —         (8,580

Bargain gain

     3,962       —         48,015       —    

Impairment of receivable in affiliate company

     —         —         —         (6,900

Equity in net (loss)/ earnings of affiliate companies

     —         (382     80,839       586  

Net loss attributable to noncontrolling interest

     3,859       —         3,859       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

   $ 177,185     $ 29,143     $ 426,160     $ 48,814  

Equity in net earnings of affiliated companies

     —         —         (80,839     —    

Bargain gain

     (3,962     —         (48,015     —    

Transaction costs

     2,870       —         2,870       —    

Gain on sale of vessels

     (30,859     —         (30,348     —    

Impairment of receivable in affiliated company

     —         —         —         6,900  

Vessels impairment loss

     —         1,780       —         8,580  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(1)

   $ 145,234     $ 30,923     $ 269,828     $ 64,294  

Cash interest income

     —         37       745       201  

Cash interest paid

     (22,812     (5,458     (35,087     (18,511

Maintenance and replacement capital expenditures

     (17,729     (9,491     (52,427     (26,670
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Surplus(2)

   $ 104,693     $ 16,011     $ 183,059     $ 19,314  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Three Month
Period Ended
September 30, 2021
($ ‘000)
(unaudited)
    Three Month
Period Ended
  September 30, 2020  
($ ‘000)
(unaudited)
    Nine Month
Period Ended
September 30, 2021
($ ‘000)
(unaudited)
    Nine Month
Period Ended
September 30, 2020
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 70,904     $ 21,025     $ 148,153     $ 68,700  

Net cash provided by/ (used in) investing activities

   $ 30,486     $ (38,682   $ (103,052   $ (78,346

Net cash provided by/ (used in) financing activities

   $ (193,063   $ 18,457     $ 65,351     $ 9,859  

 

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(1) EBITDA and Adjusted EBITDA

EBITDA represents net income/ (loss) attributable to Navios Partners’ unitholders before interest and finance costs, before depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA before impairment losses, gain on sale of assets, equity in net earnings of affiliated companies, transaction costs related to NNA Merger and bargain gain. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/ (decrease) in operating assets; (ii) net (increase)/ decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred financing cost; (v) equity in net earnings of affiliated companies; (vi) impairment charges; (vii) non-cash accrued interest income and amortization of deferred revenue; (viii) stock-based compensation expense; (ix) non-cash accrued interest income from receivable from affiliated companies; (x) amortization of operating lease right-of-use asset; (xi) gain/ (loss) on sale of assets and bargain gain; and (xii) net loss attributable to noncontrolling interest. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

EBITDA of Navios Partners for the three month period ended September 30, 2021 was affected by the accounting effect of: (i) a $30.9 million gain related to the sale of three of our vessels; (ii) $4.0 million bargain gain upon obtaining control of Navios Acquisition; and (iii) $2.9 million of transaction costs in relation to the NNA Merger. Excluding these items, Adjusted EBITDA increased by approximately $114.3 million to $145.2 million for the three month period ended September 30, 2021, as compared to $30.9 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to a: (i) $163.5 million increase in time charter and voyage revenues; (ii) $3.9 million increase in net loss attributable to noncontrolling interest; and (iii) $0.4 million decrease in equity net loss of affiliated companies. The above increase was partially mitigated by a: (i) $29.7 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) $7.9 million increase in time charter and voyage expenses; (iii) $6.6 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (iv) $4.8 million increase in general and administrative expenses, mainly due to the increased fleet; and (v) $4.5 million increase in other expense, net.

EBITDA of Navios Partners for the nine month period ended September 30, 2021 was affected by the accounting effect of: (i) an $80.8 million gain from equity in net earnings of affiliated companies; (ii) a $48.0 million bargain gain related to the NMCI Merger and the control obtained over Navios Acquisition; (iii) a $30.3 million gain related to the sale of seven of our vessels; and (iv) $2.9 million of transaction costs in relation to the NNA Merger. Excluding these items, Adjusted EBITDA increased by $205.5 million to $269.8 million for the nine month period ended September 30, 2021, as compared to $64.3 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to a: (i) $287.5 million increase in time charter and voyage revenues; and (ii) $3.9 million increase in net loss attributable to noncontrolling interest. The above increase was partially mitigated by: (i) a $50.3 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) an $11.2 million increase in time charter and voyage expenses; (iii) an $8.9 million increase in general and administrative expenses, mainly due to the increased fleet; (iv) a $7.0 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (v) a $7.9 million increase in other expense, net; and (vi) a $0.6 million decrease in equity in net earnings of affiliated companies.

 

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(2) Operating Surplus

Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense, non-cash interest income, equity compensation expense, estimated maintenance and replacement capital expenditures and one-off items. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.

Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions and is a non-GAAP measure. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

Capital Expenditures

Navios Partners finances its capital expenditures with cash flow from operations, equity raisings, long-term bank borrowings and other debt raisings. Capital expenditures for each of the nine month periods ended September 30, 2021 and 2020 amounted to $262.2 million and $81.9 million, respectively. The reserves for estimated maintenance and replacement capital expenditures for the three and nine month periods ended September 30, 2021 were $17.7 million and $52.4 million, respectively. The reserves for estimated maintenance and replacement capital expenditures for the three and nine month periods ended September 30, 2020 were $9.5 million and $26.7 million, respectively.

Maintenance for our vessels and expenses related to drydocking expenses are reimbursed at cost by Navios Partners to our Manager under the Management Agreement.

Maintenance and Replacement Capital Expenditures Reserve

We estimate that our annual replacement reserve for the year ending December 31, 2021 will be approximately $70.2 million, for replacing our vessels at the end of their useful lives.

The amount for estimated replacement capital expenditures attributable to future vessel replacement was based on the following assumptions: (i) current market price to purchase a five year old vessel of similar size and specifications; (ii) a 25-year useful life for drybulk vessels and a 30-year useful life for containerships; and (iii) a relative net investment rate.

The amount for estimated maintenance capital expenditures attributable to future vessel drydocking and special survey was based on certain assumptions including the remaining useful life of the owned vessels of our fleet, market costs of drydocking and special survey and a relative net investment rate.

Our Board of Directors, with the approval of the Conflicts Committee, may determine that one or more of our assumptions should be revised, which could cause our Board of Directors to increase or decrease the amount of estimated maintenance and replacement capital expenditures. The actual cost of replacing the vessels in our fleet will depend on a number of factors, including prevailing market conditions, charter hire rates and the availability and cost of financing at the time of replacement. We may elect to finance some or all of our maintenance and replacement capital expenditures through the issuance of additional common units, which could be dilutive to existing unitholders.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

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Contractual Obligations and Contingencies

The following table summarizes our long-term contractual obligations as of September 30, 2021.

 

     Payments due by period (Unaudited)  
     Less than
1 year
     1-3 years      3-5 years      More than
5 years
     Total  
     (In thousands of U.S. dollars)  

Loan obligations(1)

   $ 189,420      $ 381,276      $ 305,290      $ —      $ 875,986  

Financial liabilities(2)

   $ 68,969      $ 233,901      $ 137,976      $ 121,509      $ 562,355  

Operating lease obligations (Time Charters) for bareboat charter-in vessels(3)(4)(5)(7)(8)(10)

   $ 32,971      $ 115,646      $ 118,173      $ 438,039      $ 704,829  

Vessel deposits (5)(6)(7)(8)(9) (11)

   $ 59,762      $ 234,290      $ —      $ —        $ 294,052  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total contractual obligations

   $ 351,122      $ 965,113      $ 561,439      $ 559,548      $ 2,437,222  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Represents principal payments and repayments on amounts drawn on our credit facilities that bear interest at applicable fixed interest rates ranging from 230 bps to 390 bps plus LIBOR, for senior facilities, per annum. The amounts in the table exclude expected interest payments of $27.5 million (less than 1 year), $33.0 million (1-3 years) and $8.0 million (3-5 years). Expected interest payments are based on outstanding principal amounts, applicable currently effective interest rates and margins as of September 30, 2021, timing of scheduled payments and the term of the debt obligations.

(2)

Represents principal payments and repayments on amounts drawn under the financial liabilities and exclude interest payments of $23.5 million (less than 1 year), $33.6 million (1-3 years), $17.3 million (3-5 years) and $8.1 million (more than 5 years).

(3)

In November 2017, Navios Partners agreed to bareboat charter-in, under a ten-year bareboat contract, from an unrelated third party, a newbuilding Panamax vessel of 82,011 dwt, delivered on July 24, 2019. Navios Partners agreed to pay in total $5.54 million, representing a deposit for the option to acquire the vessel after the end of the fourth year, of which the first half of $2.77 million was paid during the year ended December 31, 2017 and the second half of $2.77 million was paid during the year ended December 31, 2018. As of September 30, 2021, the total amount of $6.65 million, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

(4)

On October 18, 2019, Navios Partners agreed to bareboat charter-in, under a ten-year bareboat contract each, from an unrelated third party, the Navios Amitie and the Navios Star, two newbuilding Panamax vessels of 82,002 dwt and 81,994 dwt, respectively. The vessels were delivered in Navios Partner’s fleet on May 28, 2021 and June 10, 2021, respectively. Navios Partners had agreed to pay in total $12.3 million, representing a deposit for the option to acquire the vessels after the end of the fourth year, of which $1.4 million was paid during the year ended December 31, 2019, $10.0 million was paid during the year ended December 31, 2020 and the remaining amount of $0.9 million was paid upon the delivery of the vessels. As of September 30, 2021, the total amount of $13.8 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

(5)

On January 25, 2021, Navios Partners agreed to bareboat charter-in, under a 15-year bareboat contract each, from an unrelated third party, three newbuilding Capesize vessels of approximately 180,000 dwt each. Navios Partners has the option to acquire the vessels after the end of year four for the remaining period of the bareboat charters. Navios Partners agreed to pay in total $10.5 million, representing a deposit for the option to acquire the vessels after the end of the fourth year, of which $5.3 million was paid in August 2021, presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets as of September 30, 2021 and the remaining amount of $5.2 million will be paid upon the delivery of the vessels. The vessels are expected to be delivered into Navios Partners’ fleet during the second half of 2022.

(6)

On March 31, 2021, Navios Partners agreed to acquire a newbuilding Panamax vessel, from an unrelated third party, for a purchase price of $31.6 million. The vessel has approximately 81,000 dwt and is expected to be delivered in Navios Partners’ fleet during the second half of 2022. Navios Partners has agreed to pay in total $12.6 million in four installments and the remaining amount of $19.0 million will be paid upon the delivery of the vessel. On April 1, 2021, the first installment of $3.2 million was paid. As of September 30, 2021, the total amount of $3.2 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

 

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(7)

On March 25, 2021, Navios Partners agreed to bareboat charter-in, under a 15-year bareboat contract, from an unrelated third party, one newbuilding Capesize vessel, of approximately 180,000 dwt. Navios Partners has the option to acquire the vessel after the end of year four for the remaining period of the bareboat charter. Navios Partners agreed to pay in total $3.5 million, representing a deposit for the option to acquire the vessels after the end of the fourth year of which $1.8 million was paid in August 2021, presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets as of September 30, 2021 and the remaining amount of $1.7 million will be paid upon the delivery of the vessel. The vessel is expected to be delivered by the first half of 2023.

(8)

In June 2021, Navios Partners agreed to bareboat charter-in, under a ten-year bareboat contract, from an unrelated third party, one newbuilding Capesize vessel, of approximately 180,000 dwt. Navios Partners has the option to acquire the vessel after the end of year four for the remaining period of the bareboat charter. Navios Partners agreed to pay in total $12.0 million, representing a deposit for the option to acquire the vessels after the end of the fourth year of which $6.0 million was paid in September 2021, presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets as of September 30, 2021 and the remaining amount of $6.0 million will be paid upon the delivery of the vessel. The vessel is expected to be delivered by the second half of 2022.

(9)

On June 30, 2021, Navios Partners agreed to acquire a newbuilding Panamax vessel, from an unrelated third party, for a purchase price of $34.3 million. The vessel has approximately 81,000 dwt and is expected to be delivered in Navios Partners’ fleet during the first half of 2023. Navios Partners has agreed to pay in total $13.7 million in four installments and the remaining amount of $20.6 million will be paid upon the delivery of the vessel. As of September 30, 2021, the total amount of $3.5 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

(10)

Upon obtaining control of Navios Acquisition, Navios partners assumed the following commitments:

In September 2018, Navios Acquisition agreed to a 12-year bareboat charter-in agreement with de-escalating purchase options for Baghdad and Erbil, two newbuilding Japanese VLCCs of 313,433 dwt and 313,486 dwt, respectively. On October 28, 2020, Navios Acquisition took delivery of the vessel Baghdad. On February 17, 2021, Navios Acquisition took delivery of the vessel Erbil.

In the first quarter of 2019, Navios Acquisition exercised its option to a 12-year bareboat charter-in agreement with de-escalating purchase options for Nave Electron, a newbuilding Japanese VLCC of 313,239 dwt. On August 30, 2021, Navios Partners took delivery of the vessel Nave Electron.

In the second quarter of 2020, Navios Acquisition exercised its option for a fourth newbuilding Japanese VLCC of approximately 310,000 dwt under a 12-year bareboat charter agreement with de-escalating purchase options and expected delivery in the third quarter of 2022.

(11)

On July 2, 2021, Navios Partners agreed to purchase four 5,300 TEU newbuilding containerships for a purchase price of $61.6 million each. The vessels are expected to be delivered into Navios Partners’ fleet during the second half of 2023 and first half of 2024. Navios Partners agreed to pay in total $18.5 million in three installments for each vessel and the remaining amount $43.1 million plus extras for each vessel will be paid upon delivery of the vessel. On August 13, 2021, the first installment of each vessel of $6.2 million, or $24.6 million accumulated for the 4 vessels, was paid. As of September 30, 2021, the total amount of $24.6 million is presented under the caption “Deposits for vessels acquisitions” in the Consolidated Balance Sheets.

In the fourth quarter of 2021, Navios Partners exercised its option to acquire two 5,300 TEU newbuilding containerships for a purchase price of $61.6 million each. The vessels are expected to be delivered into Navios Partners’ fleet during the second half of 2024. Navios Partners agreed to pay in total $18.5 million in three installments for each vessel and the remaining amount $43.1 million for each vessel plus extras will be paid upon delivery of the vessel. The transaction closed in the fourth quarter of 2021.

Navios Partners leases office space in Monaco pursuant to a five year lease agreement dated July 1, 2018 that expires in June 2023, for a monthly rent of approximately $0.01 million.

Limitations on Cash Distributions and Our Ability to Change Our Cash Distribution Policy

There is no guarantee that unitholders will receive quarterly distributions from us.

Our distribution policy is subject to certain restrictions and may be changed at any time, including:

 

   

Our unitholders have no contractual or other legal right to receive distributions other than the obligation under our partnership agreement to distribute available cash on a quarterly basis, which is subject to the broad discretion of our board of directors to establish reserves and other limitations.

 

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While our partnership agreement requires us to distribute all of our available cash, our partnership agreement, including provisions requiring us to make cash distributions contained therein, may be amended. Currently, our partnership agreement can be amended with the approval of a majority of the outstanding common units.

 

   

Under Section 51 of the Marshall Islands Limited Partnership Act, we may not make a distribution to our unitholders if the distribution would cause our liabilities to exceed the fair value of our assets.

 

   

We may lack sufficient cash to pay distributions to our unitholders due to decreases in net revenues or increases in operating expenses, principal and interest payments on outstanding debt, tax expenses, working capital requirements, maintenance and replacement capital expenditures or anticipated cash needs.

 

   

Our distribution policy is affected by restrictions on distributions under our credit facilities or other debt instruments. Specifically, our credit facilities contain material financial tests that must be satisfied and we will not pay any distributions that will cause us to violate our credit facilities or other debt instruments. Should we be unable to satisfy these restrictions included in our credit facilities or if we are otherwise in default under our credit facilities, our ability to make cash distributions to unitholders, notwithstanding our cash distribution policy, would be materially adversely affected.

 

   

If we make distributions out of capital surplus, as opposed to operating surplus, such distributions will constitute a return of capital and will result in a reduction in the minimum quarterly distribution and the target distribution levels. We do not anticipate that we will make any distributions from capital surplus.

Our ability to make distributions to our unitholders depends on the performance of our subsidiaries and their ability to distribute funds to us. The ability of our subsidiaries to make distributions to us may be restricted by, among other things, the provisions of existing and future indebtedness, applicable partnership and limited liability company laws and other laws and regulations.

Quarterly Distribution

There is no guarantee that we will pay the quarterly distribution on the common units in any quarter. The amount of distributions paid under our policy and the decision to make any distribution is determined by our board of directors, taking into consideration the terms of our partnership agreement. We are prohibited from making any distributions to unitholders if it would cause an event of default, or an event of default exists, under our existing credit facilities.

Quarterly distributions were paid by the Company through September 2015. For the quarter ended December 31, 2015, the Company’s board of directors determined to suspend payment of the Company’s quarterly distributions in order to preserve cash and improve our liquidity. In March 2018, the Company’s board of directors announced a new distribution policy under which it paid quarterly cash distributions in the amount of $0.30 per unit, or $1.20 per unit annually. In July 2020, the Company amended its distribution policy under which it intends to pay quarterly cash distributions in the amount of $0.05 per unit, or $0.20 per unit annually.

In October 2021, the Board of Directors of Navios Partners authorized its quarterly cash distribution for the three month period ended September 30, 2021 of $0.05 per unit. The cash distribution was paid on November 12, 2021 to all unitholders of common units and general partner units of record as of November 8, 2021. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Incentive Distribution Rights

The following description of our incentive distribution rights reflects such rights and the indicated levels are achieved, of which there can be no assurance. Incentive distribution rights represent the right to receive an increasing percentage of quarterly distributions of available cash from Operating Surplus after the minimum quarterly distribution and the target distribution levels have been achieved. Navios GP L.L.C., a wholly owned subsidiary of Navios Holdings, currently holds the incentive distribution rights, but may transfer these rights, provided the transferee agrees to be bound by the terms of the partnership agreement. As of December 31, 2017, the holder of incentive distribution rights may transfer any or all of its Incentive Distribution Rights without unitholder approval.

 

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The following table illustrates the percentage allocations of the additional available cash from Operating Surplus among the unitholders, our general partner and the holder of our incentive distribution rights up to the various target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of the unitholders in any available cash from Operating Surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution Target Amount”, until available cash from Operating Surplus we distribute reaches the next target distribution level, if any. The percentage interests shown for the unitholders for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our general partner assume that our general partner maintains its 2.0% general partner interest.

 

          Marginal Percentage Interest in
Distributions
 
    

Total Quarterly Distribution

Target Amount

   Common
Unitholders
    Incentive
Distribution
Right Holder
    General
Partner
 

Minimum Quarterly Distribution

   up to $5.25 per unit      98     —         2

First Target Distribution

   up to $6.0375 per unit      98     —         2

Second Target Distribution

   above $ 6.0375 up to $6.5625 per unit      85     13     2

Third Target Distribution

   above $6.5625 up to $7.875 per unit      75     23     2

Thereafter

   above $7.875 per unit      50     48     2

Related Party Transactions

Vessel operating expenses: Pursuant to the amended Management Agreement in each of October 2013, August 2014, February 2015, February 2016 and November 2017, the Manager provided commercial and technical management services to Navios Partners’ vessels.

In August 2019, Navios Partners extended the duration of its Management Agreement with the Manager until January 1, 2025. In addition, vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $4,450 daily rate per Panamax Vessel; (b) $4,350 daily rate per Ultra-Handymax Vessel; (c) $5,410 daily rate per Capesize Vessel; and (d) $6,900 daily rate per 6,800 TEU Containership. The agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 unless agreed otherwise.

Following the liquidation of Navios Europe I, Navios Partners acquired three Sub-Panamax and two Panamax containerships and following the liquidation of Navios Europe II, Navios Partners acquired five drybulk vessels, three Panamax and two Ultra-Handymax vessels. As per the Management Agreement, as amended in December 2019, vessel operating expenses are fixed for two years commencing from January 1, 2020 at $6,100 daily rate per Sub-Panamax/Panamax Containership. The agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

Following the completion of the NMCI Merger on March 31, 2021, the fleet of Navios Containers is included in Navios Partners’ owned fleet. As per the Management Agreement, vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $6,215 daily rate per Containership of TEU 3,000 up to 4,999, respectively; (b) $7,780 daily rate per Containership of TEU 8,000 up to 9,999, respectively; and (c) $8,270 daily rate per Containership of TEU 10,000 up to 11,999, respectively. The agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 unless agreed otherwise.

Upon obtaining control of Navios Acquisition on August 25, 2021, the fleet of Navios Acquisition is included in Navios Partners’ owned fleet. As per the Navios Acquisition management agreement with Tankers Manager, vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $6,825 per day per MR2 and MR1 product tanker and chemical tanker vessel; (b) $7,225 per day per LR1 product tanker vessel; and (c) $9,650 per day per VLCC. The agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

Drydocking expenses are reimbursed at cost for all vessels.

 

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During the three and nine month periods ended September 30, 2021, certain extraordinary fees and costs related to vessels’ regulatory requirements including ballast water treatment system installation and exhaust gas cleaning system installation, under the Company’s Management Agreement amounted to $3.3 million and $8.1 million, respectively, and are presented under the caption “Acquisition of/ additions to vessels, net of cash acquired” in the condensed Consolidated Statements of Cash Flows. During the three and nine month periods ended September 30, 2020, certain extraordinary fees and costs related to vessels’ regulatory requirements including ballast water treatment system installation and exhaust gas cleaning system installation, under the Company’s management agreement amounted to $0.9 million and $2.4 million, respectively, and are presented under “Acquisition of/ additions to vessels, net of cash acquired” in the condensed Consolidated Statements of Cash Flows. During each of the three and nine month periods ended September 30, 2021, certain extraordinary fees and costs related to Covid-19 measures, including crew related expenses, amounted to $3.5 million are presented under the caption of “Direct vessel expenses” in the condensed Consolidated Statements of Operations. During each of the three and nine month periods ended September 30, 2021, certain extraordinary fees and costs related to Covid-19 measures for prior periods, including crew related expenses, amounted to $2.0 million are presented under the caption of “Other expense, net” in the condensed Consolidated Statements of Operations.

Vessel operating expenses for each of the three and nine month periods ended September 30, 2021 amounted to $54.0 million and $118.7 million, respectively. Vessel operating expenses for each of the three and nine month periods ended September 30, 2020 amounted to $24.3 million and $68.4 million, respectively.

General and administrative expenses: Pursuant to certain Administrative Services Agreements, the Managers also provide administrative services to Navios Partners, which include bookkeeping, audit and accounting services, legal and insurance services, administrative and clerical services, banking and financial services, advisory services, client and investor relations and other. The Managers are reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. Navios Partners extended the duration of its existing Administrative Services Agreement with the Manager, until December 31, 2022. In August 2019, Navios Partners extended the duration of its existing administrative services agreement with the Manager until January 1, 2025, which provide for allocable general and administrative costs. In August 2019, Navios Acquisition extended the duration of its existing administrative services agreement with Tankers Manager until January 1, 2025, to be automatically renewed for another five years. The agreements also provide for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Partners and Navios Acquisition in the event the administrative services co-agreements are terminated on or before December 31, 2024.

Total general and administrative expenses charged by the Managers for each of the three and nine month periods ended September 30, 2021 amounted to $7.6 million and $17.4 million, respectively. Total general and administrative expenses charged by the Managers for each of the three and nine month periods ended September 30, 2020 amounted to $3.6 million and $10.0 million respectively.

Balance due from related parties, short-term: Balance due from related parties as of each of September 30, 2021 and December 31, 2020 amounted to $0 and $5.0 million, respectively, that consisted of the receivable from the Navios Holdings Guarantee, as defined below, which was fully repaid in April 2021.

Balance due to related parties, short term: Amounts due to related parties, short-term as of September 30, 2021 and December 31, 2020 were $41.3 million and $36.0 million, respectively, and mainly consisted of payables to the Managers.

Impairment of receivable in affiliated company: Navios Holdings, Navios Acquisition and Navios Partners have made available to Navios Europe II revolving loans of up to $43.5 million to fund working capital requirements (collectively, the “Navios Revolving Loans II”). In March 2017, the availability under the Navios Revolving Loans II was increased by $14.0 million.

On April 21, 2020, Navios Europe II agreed with the lender to fully release the liabilities under the junior participating loan facility for $5.0 million. Navios Europe II owned seven container vessels and seven dry bulk vessels. Navios Partners had a net receivable of approximately $17.3 million from Navios Europe II.

As of March 31, 2020, the decline in the fair value of the investment was considered as other-than-temporary and, therefore, an aggregate loss of $6.9 million was recognized and included in the accompanying condensed Consolidated Statements of Operations for the nine month period ended September 30, 2020, as “Impairment of receivable in affiliated company”. The fair value of the Company’s investment was determined based on the liquidation value of Navios Europe II, including the individual fair values assigned to the assets and liabilities of Navios Europe II.

 

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On May 14, 2020, an agreement was reached to liquidate Navios Europe II before its original expiration date. The transaction was completed on June 29, 2020.

As a result of the Navios Europe II liquidation, Navios Partners acquired 100% of the stock of the five vessels owning Companies owning the dry bulk vessels of Navios Europe II with a fair value of $56.1 million and working capital balances of $(2.7) million. The purchase was funded through a credit facility and cash on hand for total of $36.1 million and the satisfaction of its receivable balances in the amount of approximately $17.3 million representing the Revolving Loan, Term Loan and accrued interest thereof directly owned to Navios Partners, previously presented under the captions “Amounts due from related parties” and “Loans receivable from affiliates”.

Following the Liquidation of Navios Europe II, there was no balance due from Navios Europe II as of September 30, 2021 and December 31, 2020.

Others: Navios Partners has entered into an omnibus agreement with Navios Holdings (the “Partners Omnibus Agreement”) in connection with the closing of Navios Partners’ IPO governing, among other things, when Navios Holdings and Navios Partners may compete against each other as well as rights of first offer on certain drybulk carriers. Pursuant to the Partners Omnibus Agreement, Navios Partners generally agreed not to acquire or own Panamax or Capesize drybulk carriers under time charters of three or more years without the consent of an independent committee of Navios Partners. In addition, Navios Holdings has agreed to offer to Navios Partners the opportunity to purchase vessels from Navios Holdings when such vessels are fixed under time charters of three or more years.

Navios Partners entered into an omnibus agreement with Navios Acquisition and Navios Holdings (the “Acquisition Omnibus Agreement”) in connection with the closing of Navios Acquisition’s initial vessel acquisition, pursuant to which, among other things, Navios Holdings and Navios Partners agreed not to acquire, charter-in or own liquid shipment vessels, except for containerships and vessels that are primarily employed in operations in South America, without the consent of an independent committee of Navios Acquisition. In addition, Navios Acquisition, under the Acquisition Omnibus Agreement, agreed to cause its subsidiaries not to acquire, own, operate or charter drybulk carriers subject to specific exceptions. Under the Acquisition Omnibus Agreement, Navios Acquisition and its subsidiaries granted to Navios Holdings and Navios Partners, a right of first offer on any proposed sale, transfer or other disposition of any of its drybulk carriers and related charters owned or acquired by Navios Acquisition. Likewise, Navios Holdings and Navios Partners agreed to grant a similar right of first offer to Navios Acquisition for any liquid shipment vessels it might own. These rights of first offer will not apply to a (i) sale, transfer or other disposition of vessels between any affiliated subsidiaries, or pursuant to the terms of any charter or other agreement with a counterparty, or (ii) merger with or into, or sale of substantially all of the assets to, an unaffiliated third party.

In connection with the Navios Maritime Midstream Partners L.P. (“Navios Midstream”) initial public offering effective November 18, 2014, Navios Partners entered into an omnibus agreement with Navios Midstream, Navios Acquisition and Navios Holdings pursuant to which Navios Acquisition, Navios Holdings and Navios Partners have agreed not to acquire or own any VLCCs, crude oil tankers, refined petroleum product tankers, LPG tankers or chemical tankers under time charters of five or more years and also providing rights of first offer on certain tanker vessels.

Navios Holdings Guarantee: On November 15, 2012 (as amended and supplemented in March 2014, December 2017 and July 2019), Navios Holdings and Navios Partners entered into an agreement the “Navios Holdings Guarantee” by which Navios Holdings would provide supplemental credit default insurance with a maximum cash payment of $20.0 million. In October 2020, Navios Holdings paid an amount of $5.0 million to Navios Partners. As of December 31, 2020, the outstanding claim receivable amounted to $5.0 million, presented under the caption “Amounts due from related parties-short term” in the condensed Consolidated Balance Sheets. In April 2021, Navios Holdings paid the amount of $5.0 million to Navios Partners as the final settlement of the outstanding balance of the claim. As of September 30, 2021, the outstanding claim receivable amounted to $0.

General partner: In August 2019, Navios Holdings announced that it sold certain assets, including its ship management division and the general partnership interest in Navios Partners to N Shipmanagement Acquisition Corp. and related entities, affiliated with Navios Holdings’ Chairman and Chief Executive Officer, Angeliki Frangou.

Acquisition of vessels: On September 30, 2020, Navios Partners acquired the Navios Gem, a 2014-built Capesize vessel of 181,336 dwt and the Navios Victory, a 2014-built Panamax vessel of 77,095 dwt, from its affiliate, Navios Holdings, for a purchase price of $51.0 million.

Upon obtaining control of Navios Acquisition on August 25, 2021 and the completion of the NMCI Merger on March 31, 2021, the fleets of Navios Acquisition and Navios Containers were included in Navios Partners’ owned fleet.

 

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On March 30, 2021, Navios Partners acquired the Navios Avior, a 2012-built Panamax vessel of 81,355 dwt, and the Navios Centaurus, a 2012-built Panamax vessel of 81,472 dwt, from Navios Holdings, for an acquisition cost of $39.3 million (including less than $0.1 million capitalized expenses), including working capital balances of $(5.8) million.

On May 10, 2021, Navios Partners acquired the Ete N, a 2012-built Containership of 2,782 TEU, the Fleur N, a 2012-built Containership of 2,782 TEU and the Spectrum N, a 2009-built Containership of 2,546 TEU from Navios Acquisition, for an aggregate purchase price of $55.5 million.

On June 4, 2021, Navios Partners acquired the Navios Koyo, a 2011-built Capesize vessel of 181,415 dwt, from its affiliate, Navios Holdings, for an acquisition cost of $28.6 million (including less than $0.1 million capitalized expenses).

On June 30, 2021, Navios Partners acquired the Navios Ray, a 2012-built Capesize vessel of 179,515 dwt and the Navios Bonavis, a 2009-built Capesize vessel of 180,022 dwt, from its affiliate, Navios Holdings, for an aggregate purchase price of $58.0 million.

On July 9, 2021, Navios Partners acquired the Navios Azimuth, a 2011-built Capesize vessel of 179,169 dwt, from its affiliate, Navios Holdings, for an acquisition cost of $30.0 million (including less than $0.1 million capitalized expenses).

Navios Acquisition Credit Facility: On August 24, 2021, Navios Partners and Navios Acquisition entered into a loan agreement (the “NNA Loan Agreement”) under which Navios Partners agreed to make available to Navios Acquisition a working capital facility of up to $45.0 million. As of the date hereof, the full amount of the facility has been drawn. The full amounts borrowed, including accrued and unpaid interest are due and payable on the date that is one year following the date hereof. The facility bears interest at the rate of 11.50% per annum. As of September 30, 2021, the outstanding balance of $45.0 million was eliminated upon consolidation.

Loan payable to affiliated company: On March 19, 2021, Navios Acquisition entered into a secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp., an entity affiliated with Navios Acquisition’s Chairman and Chief Executive Officer (“NSM”), for a loan of up to $100.0 million to be used for general corporate purposes (the “NSM Loan Agreement”). The Loan will be repayable in two years and bears interest at a rate of 11% per annum, payable quarterly. Navios Acquisition may elect to defer all scheduled capital and interest payments, in which case the applicable interest rate is 12.5% per annum. Up to July 1, 2021, the full amount was drawn.

In August 2021, Navios Acquisition entered into a supplemental agreement (the “Supplemental Loan Agreement”) to amend the existing loan agreement dated March 19, 2021. The Supplemental Loan Agreement amended the NSM Loan Agreement with the following; cancel $30.0 million of the outstanding balance of the NSM Loan in exchange for 8,823,529 newly-issued shares of common stock of Navios Acquisition ($3.40 per share), which shares of common stock of Navios Acquisition converted into common units of Navios Partners in the NNA Merger on the same terms as is applicable to other outstanding shares of common stock of Navios Acquisition; and provided for the repayment of $35.0 million of the outstanding balance of the NSM Loan in cash as of the date of the Supplemental Loan Agreement and the repayment in cash on January 7, 2022 of the remainder of the outstanding balance of the NSM Loan, of approximately $33.1 million.

Upon obtaining control of Navios Acquisition, Navios Partners assumed the loan payable to affiliated company. As of September 30, 2021, the balance amounted to $33.1 million and is presented under the caption “Loan payable to affiliate company” in the condensed Consolidated Balance sheets.

Quantitative and Qualitative Disclosures about Market Risks

Foreign Exchange Risk

Our functional and reporting currency is the U.S. dollar. We engage in worldwide commerce with a variety of entities. Although our operations may expose us to certain levels of foreign currency risk, our transactions are predominantly U.S. dollar denominated. Transactions in currencies other than U.S. dollars are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized.

Interest Rate Risk

Borrowings under our credit facilities bear interest at rate based on a premium over U.S. $ LIBOR. Therefore, we are exposed to the risk that our interest expense may increase if interest rates rise. For the nine month period ended September 30, 2021 and 2020, we paid interest on our outstanding debt at a weighted average interest rate of 4.29% and 4.69%, respectively. A 1% increase in LIBOR would have increased our interest expense for each of the nine month periods ended September 30, 2021 and 2020 by $4.8 million and $3.1 million, respectively.

 

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Concentration of Credit Risk

Financial instruments, which potentially subject us to significant concentrations of credit risk, consist principally of trade accounts receivable. We closely monitor our exposure to customers for credit risk. We have policies in place to ensure that we trade with customers with an appropriate credit history.

For the nine month period ended September 30, 2021, Singapore Marine represented approximately 14.8% of total revenues. For the nine month period ended September 30, 2020, HMM represented approximately 24.6% of total revenues. No other customers accounted for 10% or more of total revenues for any of the periods presented.

On November 15, 2012 (as amended and supplemented in March 2014, December 2017 and July 2019), Navios Holdings and Navios Partners entered into an agreement the “Navios Holdings Guarantee” by which Navios Holdings would provide supplemental credit default insurance with a maximum cash payment of $20.0 million. In October 2020, Navios Holdings paid an amount of $5.0 million to Navios Partners. As of December 31, 2020, the outstanding claim receivable amounted to $5.0 million, presented under the caption “Amounts due from related parties-short term” in the condensed Consolidated Balance Sheets. In April 2021, Navios Holdings paid the amount of $5.0 million to Navios Partners as the final settlement of the outstanding balance of the claim. As of September 30, 2021, the outstanding claim receivable amounted to $0.

If we lose a charter, we may be unable to re-deploy the related vessel on terms as favorable to us due to the long-term nature of most charters and the cyclical nature of the industry or we may be forced to charter the vessel on the spot market at then market rates which may be less favorable than the charter that has been terminated. If we are unable to re-deploy a vessel for which the charter has been terminated, we will not receive any revenues from that vessel, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition. If we lose a vessel, any replacement or newbuilding would not generate revenues during its construction acquisition period, and we may be unable to charter any replacement vessel on terms as favorable to us as those of the terminated charter.

Even if we successfully charter our vessels in the future, our charterers may go bankrupt or fail to perform their obligations under the charter agreements, they may delay payments or suspend payments altogether, they may terminate the charter agreements prior to the agreed-upon expiration date or they may attempt to renegotiate the terms of the charters. The permanent loss of a customer, time charter or vessel, or a decline in payments under our charters, could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions in the event we are unable to replace such customer, time charter or vessel. For further details, please read “Risk Factors” in our 2020 Annual Report on Form 20-F.

Inflation

Inflation has had a minimal impact on vessel operating expenses, drydocking expenses and general and administrative expenses. Our management does not consider inflation to be a significant risk to direct expenses in the current and foreseeable economic environment.

Recent Accounting Pronouncements

The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

Critical Accounting Policies

Our financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates in the application of our accounting policies based on the best assumptions, judgments and opinions of management. Following is a discussion of the accounting policies that involve a higher degree of judgment and the methods of their application that affect the reported amount of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those that reflect significant judgments or uncertainties, and potentially result in materially different results under different assumptions and conditions. Other than as described below, all significant accounting policies are as described in Note 2 to the Notes to the consolidated financial statements included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2020 filed with the SEC on March 31, 2021.

 

 

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INDEX

 

     Page  

NAVIOS MARITIME PARTNERS L.P.

  

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER  30, 2021 AND DECEMBER 31, 2020

     F-2  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

     F-3  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

     F-4  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

     F-6  

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

     F-7  

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of U.S. Dollars – except for unit data)

 

     Notes    September 30,
2021
(unaudited)
     December 31,
2020
(audited)
 

ASSETS

        

Current assets

        

Cash and cash equivalents

   4    $ 132,244      $ 19,303  

Restricted cash

   4      8,936        11,425  

Accounts receivable, net

        29,169        16,969  

Amounts due from related parties

   13      —           5,000  

Prepaid expenses and other current assets

   18      49,543        8,083  
     

 

 

    

 

 

 

Total current assets

        219,892        60,780  
     

 

 

    

 

 

 

Vessels, net

   5      2,895,298        1,041,138  

Deposits for vessels acquisitions

   12      26,444        —    

Other long-term assets

   3,7,12      55,036        18,850  

Deferred dry dock and special survey costs, net

        57,688        37,045  

Investment in affiliates

   15      —          26,158  

Intangible assets

   3,6      109,719        2,000  

Notes receivable, net of current portion

   14      —          8,013  

Operating lease assets

   17      248,623        13,285  
     

 

 

    

 

 

 

Total non-current assets

        3,392,808        1,146,489  
     

 

 

    

 

 

 

Total assets

      $ 3,612,700      $ 1,207,269  
     

 

 

    

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

        

Current liabilities

        

Accounts payable

      $ 22,825      $ 6,299  

Accrued expenses

        14,980        4,781  

Deferred revenue

   2,14      19,502        3,185  

Operating lease liabilities, current portion

   17      18,078        1,173  

Amounts due to related parties

   13      41,253        35,979  

Current portion of financial liabilities, net

   7      68,598        6,277  

Current portion of long-term debt, net

   7      184,744        195,558  

Loan payable to affiliated company

   13      33,112        —    
     

 

 

    

 

 

 

Total current liabilities

        403,092        253,252  
     

 

 

    

 

 

 

Operating lease liabilities, net

   17      230,226        11,980  

Unfavorable lease terms

   3,6      153,417        —    

Long-term financial liabilities, net

   7      492,404        56,481  

Long-term debt, net

   7      679,485        228,541  

Deferred revenue

   14      1,342        2,185  
     

 

 

    

 

 

 

Total non-current liabilities

        1,556,874        299,187  
     

 

 

    

 

 

 

Total liabilities

      $ 1,959,966      $ 552,439  
     

 

 

    

 

 

 

Commitments and contingencies

   12      —          —    

Partners’ capital:

        

Common Unitholders (26,808,861 and 11,345,187 units issued and outstanding at September 30, 2021 and December 31, 2020, respectively)

   9      1,577,163        652,013  

General Partner (553,408 and 237,822 units issued and outstanding at September 30, 2021 and December 31, 2020, respectively)

   9      21,795        2,817  
     

 

 

    

 

 

 

Total Navios Partners’ capital

        1,598,958        654,830  
     

 

 

    

 

 

 

Noncontrolling interest

        53,776        —    
     

 

 

    

 

 

 

Total Partners’ Capital

        1,652,734        654,830  
     

 

 

    

 

 

 

Total liabilities and partners’ capital

      $ 3,612,700      $ 1,207,269  
     

 

 

    

 

 

 

See unaudited notes to the condensed consolidated financial statements

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in thousands of U.S. Dollars – except for unit and per unit data)

 

     Notes    Three Month
Period Ended

September 30,
2021

(unaudited)
    Three Month
Period Ended

September 30,
2020

(unaudited)
    Nine Month
Period Ended

September 30,
2021

(unaudited)
    Nine Month
Period Ended

September 30,
2020

(unaudited)
 

Time charter and voyage revenues

   10,14    $ 227,957     $ 64,499     $ 445,029     $ 157,538  

Time charter and voyage expenses

   17      (11,465     (3,609     (19,829     (8,647

Direct vessel expenses

        (10,864     (2,736     (18,007     (7,670

Vessel operating expenses (entirely through related parties transactions)

   13      (53,952     (24,289     (118,685     (68,424

General and administrative expenses

   13      (9,491     (4,716     (24,717     (15,844

Depreciation and amortization of intangible assets

   5,6      (32,102     (14,153     (67,309     (41,453

Amortization of unfavorable lease terms

   6      35,576       —         77,602       —    

Gain on sale of vessels

   5      30,859       —         30,348       —    

Vessels impairment loss

   5      —         (1,780     —         (8,580

Interest expense and finance cost, net

        (14,446     (5,417     (27,624     (18,636

Interest income

   14      —         143       859       514  

Impairment of receivable in affiliated company

   13      —         —         —         (6,900

Other expense, net

        (4,969     (569     (8,864     (858

Equity in net (loss)/ earnings of affiliated companies

   3,15      —         (382     80,839       586  

Transaction costs

   3      (2,870     —         (2,870     —    

Bargain gain

   3      3,962       —         48,015       —    
     

 

 

   

 

 

   

 

 

   

 

 

 

Net income/ (loss)

      $ 158,195     $ 6,991     $ 394,787     $ (18,374
     

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to the noncontrolling interest

        3,859       —         3,859       —    
     

 

 

   

 

 

   

 

 

   

 

 

 

Net income/ (loss) attributable to Navios Partners unitholders

      $ 162,054     $ 6,991     $ 398,646     $ (18,374
     

 

 

   

 

 

   

 

 

   

 

 

 

Net income/ (loss) attributable to Navios Partners unitholders

 

     Three Month
Period Ended

September 30,
2021

(unaudited)
     Three Month
Period Ended

September 30,
2020

(unaudited)
     Nine Month
Period Ended

September 30,
2021

(unaudited)
     Nine Month
Period Ended

September 30,
2020

(unaudited)
 

Common Unitholders

   $ 158,813      $ 6,851      $ 390,673      $ (18,009

General Partner

     3,241        140        7,973        (365
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income/ (loss) attributable to Navios Partners unitholders

   $ 162,054      $ 6,991      $ 398,646      $ (18,374
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings/ (losses) attributable to Navios Partners’ unitholders per unit (see note 16):

 

    Three Month
Period Ended

September 30,
2021

(unaudited)
    Three Month
Period Ended

September 30,
2020

(unaudited)
    Nine Month
Period Ended

September 30,
2021

(unaudited)
    Nine Month
Period Ended

September 30,
2020

(unaudited)
 

Earnings/ (losses) attributable to Navios Partners’ unitholders per unit:

       

Earnings/ (losses) attributable to Navios Partners’ unitholders per common unit, basic

  $ 5.97     $ 0.63     $ 19.27     $ (1.65

Earnings/ (losses) attributable to Navios Partners’ unitholders per common unit, diluted

  $ 5.95     $ 0.63     $ 19.19     $ (1.65

See unaudited notes to the condensed consolidated financial statements

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Notes    Nine Month
Period Ended
September 30, 2021
(unaudited)
    Nine Month
Period Ended
September 30, 2020
(unaudited)
 

OPERATING ACTIVITIES:

       

Net income/ ( loss)

      $ 394,787     $ (18,374

Adjustments to reconcile net income/ (loss) to net cash provided by operating activities:

       

Depreciation and amortization of intangible assets

   5,6      67,309       41,453  

Amortization of unfavorable lease terms

   6      (77,602     —    

Vessels impairment loss

        —         8,580  

Impairment of receivable in affiliated company

   13      —         6,900  

Non cash accrued interest income and amortization of deferred revenue

   14      (1,702     (1,188

Amortization of operating lease right-of-use asset

   17      (187     703  

Amortization and write-off of deferred finance costs and discount

        2,468       1,570  

Amortization of deferred dry dock and special survey costs

        11,042       7,613  

Gain on sale of vessels

   5      (30,348     —    

Bargain gain

   3      (48,015     —    

Equity in net earnings of affiliated companies

   3,15      (80,839     (586

Stock based compensation

   9      370       723  

Changes in operating assets and liabilities:

       

(Increase)/ decrease in accounts receivable

        (5,051     374  

Decrease in prepaid expenses and other current assets

        (6,654     (1,951

Increase/ (decrease) in accounts payable

        3,023       (2,300

(Decrease)/ increase in accrued expenses

        (5,644     188  

Increase/ (decrease) in deferred revenue

        13,324       (420

(Increase)/ decrease in amounts due from related parties

   13      (18,175     15,582  

(Decrease)/ increase in amounts due to related parties

   13      (37,492     31,865  

Payments for dry dock and special survey costs

        (32,461     (21,260

Operating lease liabilities short and long-term

   17      —         (772
     

 

 

   

 

 

 

Net cash provided by operating activities

        148,153       68,700  

INVESTING ACTIVITIES:

       

Net cash proceeds from sale of vessels

   5      107,615       —    

Deposit for option to acquire vessel

   12      (48,464     (10,425

Cash acquired from business acquisitions

   3,4      42,676       —    

Acquisition of/ additions to vessels, net of cash acquired

   5      (213,751     (71,437

Repayments of notes receivable

   14      8,872       3,516  
     

 

 

   

 

 

 

Net cash used in investing activities

        (103,052     (78,346

FINANCING ACTIVITIES:

       

Cash distributions paid

   16      (3,074     (7,293

Net proceeds from issuance of general partner units

   9      8,067       35  

Net proceeds from issuance of common units

   9      198,495       1,740  

Repayment of long-term debt and financial liabilities

   7      (789,436     (63,286

Payments of deferred finance costs

        (11,267     (812

Proceeds from long-term debt and financial liabilities

   7,9      662,566       79,475  
     

 

 

   

 

 

 

Net cash provided by financing activities

        65,351       9,859  
     

 

 

   

 

 

 

Increase in cash, cash equivalents and restricted cash

        110,452       213  

Cash, cash equivalents and restricted cash, beginning of period

        30,728       30,402  
     

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, end of period

      $ 141,180     $ 30,615  
     

 

 

   

 

 

 

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Nine Month
Period Ended
September 30,
2021

(unaudited)
    Nine Month
Period Ended
September 30,
2020

(unaudited)
 

Supplemental disclosures of cash flow information

    

Cash interest paid

   $ 35,087     $ 18,511  

Non cash financing activities

    

Stock based compensation

   $ 370     $ 723  

Non cash investing activities

    

Loans receivable from affiliates

     —       $ (9,992

Payable to affiliated companies

     —       $ (13,622

Acquisition of vessels

   $ (5,766   $ 37,999  

See unaudited notes to the condensed consolidated financial statements

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(Expressed in thousands of U.S. Dollars - except for unit data)

 

     Limited Partners              
     General Partner     Common Unitholders              
     Units      Amount     Units      Amount     Noncontrolling
Interest
    Total
Partners’

Capital
 

Balance, December 31, 2020

     237,822      $ 2,817       11,345,187      $ 652,013       —       $ 654,830  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cash distribution paid ($0.05 per unit—see Note 16)

     —          (12     —          (567     —         (579

Proceeds from public offering and issuance of units, net of offering costs (see Note 9)

     8,142        203       398,934        9,705       —         9,908  

Units issued for the acquisition of Navios Containers, net of expenses (see Note 9)

     165,989        3,911       8,133,452        191,624       —         195,535  

Stock based compensation (see Note 9)

     —          —         —          118       —         118  

Net income

     —          2,733       —          133,946       —         136,679  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balance, March 31, 2021

     411,953      $ 9,652       19,877,573      $ 986,839       —       $ 996,491  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cash distribution paid ($0.05 per unit—see Note 16)

     —          (22     —          (1,105     —         (1,127

Proceeds from public offering and issuance of units, net of offering costs (see Note 9)

     120,042        3,417       5,882,061        163,233       —         166,650  

Stock based compensation (see Note 9)

     —          —         —          116       —         116  

Net income

     —          1,999       —          97,914       —         99,913  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balance June 30, 2021

     531,995      $ 15,046       25,759,634      $ 1,246,997       —       $ 1,262,043  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Cash distribution paid ($0.05 per unit—see Note 16)

     —          (28     —          (1,340     —         (1,368

Proceeds from public offering and issuance of units, net of offering costs (see Note 9)

     21,413        536       1,049,227        25,557       —         26,093  

Deemed contribution (see Note 3)

     —          3,000       —          147,000       —         150,000  

Stock based compensation (see Note 9)

     —          —         —          136       —         136  

Net income/ (loss)

     —          3,241       —          158,813       (3,859     158,195  

Fair value of noncontrolling interest (see Note 3)

     —          —         —          —         57,635       57,635  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balance September 30, 2021

     553,408      $ 21,795       26,808,861      $ 1,577,163       53,776     $ 1,652,734  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

     Limited Partners        
     General Partner     Common Unitholders        
     Units      Amount     Units      Amount     Total Partners’
Capital
 

Balance December 31, 2019

     230,524      $ 4,299       10,987,679      $ 723,720     $ 728,019  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Cash distribution paid ($0.30 per unit—see Note 16)

     —          (69     —          (3,296     (3,365

Stock based compensation (see Note 9)

     —          —         —          245       245  

Net loss

     —          (213     —          (10,511     (10,724
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Balance March 31, 2020

     230,524      $ 4,017       10,987,679      $ 710,158     $ 714,175  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Cash distribution paid ($0.30 per unit—see Note 16)

     —          (69     —          (3,297     (3,366

Stock based compensation (see Note 9)

     —          —         —          238       238  

Net loss

     —          (293     —          (14,348     (14,641
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Balance June 30, 2020

     230,524      $ 3,655       10,987,679      $ 692,751     $ 696,406  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Cash distribution paid ($0.05 per unit—see Note 16)

     —          (11     —          (551     (562

Proceeds from public offering and issuance of units, net of offering costs (see Note 9)

     5,546        35       280,318        1,740       1,775  

Stock based compensation (see Note 9)

     —          —         —          240       240  

Net Income

     —          140       —          6,851       6,991  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Balance September 30, 2020

     236,070      $ 3,819       11,267,997      $ 701,031     $ 704,850  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

See unaudited notes to the condensed consolidated financial statements    

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

NOTE 1 – DESCRIPTION OF BUSINESS

Navios Maritime Partners L.P. (“Navios Partners” or the “Company”), is an international owner and operator of dry cargo and tanker vessels, formed on August 7, 2007 under the laws of the Republic of the Marshall Islands. Currently, the Company’s general partner is Olympos Maritime Ltd. (the “General Partner”) and holds a 2.0% general partner interest in Navios Partners.

Navios Partners is engaged in the seaborne transportation services of a wide range of liquid and dry cargo commodities including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer and also containers, chartering its vessels under medium to longer-term charters. The operations of Navios Partners are managed by Navios Shipmanagement Inc., (the “Manager”), from its offices in Piraeus, Greece, Singapore and Monaco.

Pursuant to the initial public offering (“IPO”) on November 16, 2007, Navios Partners entered into the following agreements:

(a) a management agreement with the Manager (the “Management Agreement”), pursuant to which the Manager provides Navios Partners commercial and technical management services;

(b) an administrative services agreement with the Manager (the “Administrative Services Agreement”), pursuant to which the Manager provides Navios Partners administrative services; and

(c) an omnibus agreement with Navios Maritime Holdings Inc. (“Navios Holdings”) (the “Omnibus Agreement”), governing, among other things, when Navios Partners and Navios Holdings may compete against each other as well as rights of first offer on certain drybulk carriers.

In August 2019, Navios Holdings announced that it sold certain assets, including its ship management division and the general partnership interest in Navios Partners to N Shipmanagement Acquisition Corp. and related entities, affiliated with the Company’s Chairman and Chief Executive Officer.

As of September 30, 2021, there were 26,808,861 outstanding common units and 553,408 general partnership units. As of September 30, 2021, Navios Holdings held a 9.4% ownership interest in Navios Partners and the General Partner owned 2.0% general partner interest in Navios Partners.

Navios Acquisition

Navios Maritime Acquisition Corporation (“Navios Acquisition”) owns a large fleet of modern crude oil, refined petroleum product and chemical tankers providing world-wide marine transportation services. Navios Acquisition’s strategy is to charter its vessels to international oil companies, refiners and large vessel operators under long, medium and short-term contracts. Navios Acquisition is committed to providing quality transportation services and developing and maintaining long-term relationships with its customers. The operations of Navios Acquisition were managed by Navios Tankers Management Inc. (“Tankers Manager” and together with the Manager, the “Managers”), so we expect the operations of Navios Acquisition to remain un-affected following the completion of the merger on October 15, 2021 (the “NNA Merger”).

On August 25, 2021 (date of obtaining control), Navios Partners purchased 44,117,647 newly issued shares of Navios Acquisition, thereby acquiring a controlling interest of 62.4% in Navios Acquisition (see Note 3 – Acquisition of Navios Containers and Consolidation of Navios Acquisition), and the results of operations of Navios Acquisition are included in Navios Partners’ consolidated statements of operations commencing on August 26, 2021.

As of September 30, 2021, Navios Partners owned a 62.4% common stock interest in Navios Acquisition.

On October 15, 2021, Navios Partners completed the NNA Merger, and as a result thereof Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding share of common stock of Navios Acquisition that was held by a stockholder other than Navios Partners was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result of the NNA Merger, 3,388,226 common units of Navios Partners were issued to former public stockholders of Navios Acquisition.

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation: The accompanying interim condensed consolidated financial statements are unaudited, but, in the opinion of management, reflect all adjustments for a fair statement of Navios Partners’ consolidated balance sheets, statement of partner’s capital, statements of operations and cash flows for the periods presented. The results of operations for the interim periods are not necessarily indicative of results for the full year. The footnotes are condensed as permitted by the requirements for interim financial statements and accordingly, do not include information and disclosures required under United States generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All such adjustments are deemed to be of a normal recurring nature. These interim financial statements should be read in conjunction with the Company’s consolidated financial statements and notes included in Navios Partners’ Annual Report for the year ended December 31, 2020 filed on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”). Based on internal forecasts and projections that take into account reasonably possible changes in the Company’s trading performance, management believes that the Company has adequate financial resources to continue in operation and meet its financial commitments, including but not limited to capital expenditures and debt service obligations, for a period of at least twelve months from the date of issuance of these condensed consolidated financial statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements.

(b)Principles of consolidation: The accompanying condensed consolidated financial statements include Navios Partners’ both majority and wholly owned subsidiaries incorporated under the laws of Marshall Islands, Malta, Cayman Islands and Liberia from their dates of incorporation or from the date of acquiring control, for chartered-in vessels, from the dates charter-in agreements were in effect. All significant inter-company balances and transactions have been eliminated in Navios Partners’ consolidated financial statements.

Navios Partners also consolidates entities that are determined to be variable interest entities (“VIE”) as defined in the accounting guidance, if it determines that it is the primary beneficiary. A VIE is defined as a legal entity where either (i) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, (ii) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights.

Subsidiaries: Subsidiaries are those entities in which Navios Partners has an interest of more than one half of the voting rights or otherwise has power to govern the financial and operating policies of the entity. All subsidiaries included in the condensed consolidated financial statements are 100% owned except for Navios Acquisition which as of September 30, 2021 was 62.4% owned by Navios Partners.

The accompanying interim condensed consolidated financial statements include the following entities:

 

Company name

  

Vessel name

   Country of
incorporation
   2021    2020

Libra Shipping Enterprises Corporation(1)

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Alegria Shipping Corporation

   Navios Alegria    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Felicity Shipping Corporation(2)

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Gemini Shipping Corporation(3)

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Galaxy Shipping Corporation(4)

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Aurora Shipping Enterprises Ltd.

   Navios Hope    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Palermo Shipping S.A.(5)

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Fantastiks Shipping Corporation(12)

   Navios Fantastiks    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Sagittarius Shipping Corporation(12)

   Navios Sagittarius    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Hyperion Enterprises Inc.

   Navios Hyperion    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Chilali Corp.

   Navios Aurora II    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Surf Maritime Co.

   Navios Pollux    Marshall Is.    01/01 – 09/30    01/01 – 09/30

 

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Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

 

 

Pandora Marine Inc.

   Navios Melodia    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Customized Development S.A.

   Navios Fulvia    Liberia    01/01 – 09/30    01/01 – 09/30

Kohylia Shipmanagement S.A.

   Navios Luz    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Orbiter Shipping Corp.

   Navios Orbiter    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Floral Marine Ltd.

   Navios Buena Ventura    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Golem Navigation Limited(13)

   Navios Soleil    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Kymata Shipping Co.

   Navios Helios    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Joy Shipping Corporation

   Navios Joy    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Micaela Shipping Corporation

   Navios Harmony    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Pearl Shipping Corporation

   Navios Sun    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Velvet Shipping Corporation

   Navios La Paix    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Perigiali Navigation Limited(12)

   Navios Beaufiks    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Finian Navigation Co.(12)

   Navios Ace    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Ammos Shipping Corp.

   Navios Prosperity I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Wave Shipping Corp.

   Navios Libertas    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Casual Shipholding Co.(12)

   Navios Sol    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Avery Shipping Company

   Navios Symphony    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Coasters Ventures Ltd.

   Navios Christine B    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Ianthe Maritime S.A.

   Navios Aster    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Rubina Shipping Corporation

   Hyundai Hongkong    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Topaz Shipping Corporation

   Hyundai Singapore    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Beryl Shipping Corporation

   Hyundai Tokyo    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cheryl Shipping Corporation

   Hyundai Shanghai    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Christal Shipping Corporation

   Hyundai Busan    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Dune Shipping Corp.(6)

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Citrine Shipping Corporation

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cavalli Navigation Inc.

      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Seymour Trading Limited(32)

   Navios Altair I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Goldie Services Company

   Navios Symmetry    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Andromeda Shiptrade Limited

   Navios Apollon I    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Esmeralda Shipping Corporation

   Navios Sphera    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Triangle Shipping Corporation

   Navios Mars    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Oceanus Shipping Corporation(7)(19)

   Castor N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Cronus Shipping Corporation(7)

   Protostar N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Leto Shipping Corporation(7)(17)

   Esperanza N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Dionysus Shipping Corporation(7)(30)

   Harmony N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Prometheus Shipping Corporation(7)(18)

   Solar N    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Camelia Shipping Inc.(8)

   Navios Camelia    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Anthos Shipping Inc.(8)

   Navios Anthos    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Azalea Shipping Inc.(8)(31)

   Navios Azalea    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Amaryllis Shipping Inc.(8)

   Navios Amaryllis    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Zaffre Shipping Corporation(14)

   Serenitas N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Wenge Shipping Corporation(14)(20)

   Joie N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Sunstone Shipping Corporation(14)

   Copernicus N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Fandango Shipping Corporation(14)

   Unity N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Flavescent Shipping Corporation(14)

   Odysseus N    Marshall Is.    01/01 – 09/30    06/29 – 09/30

Emery Shipping Corporation(15)

   Navios Gem    Marshall Is.    01/01 – 09/30    09/30 – 09/30

Rondine Management Corp.(15)

   Navios Victory    Marshall Is.    01/01 – 09/30    09/30 – 09/30

Solange Shipping Ltd.(16)

   Navios Avior    Marshall Is.    03/30 – 09/30   

Mandora Shipping Ltd.(16)

   Navios Centaurus    Marshall Is.    03/30 – 09/30   

 

F-9


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

 

 

Olympia II Navigation Limited

   Navios Domino    Marshall Is.    03/31 – 09/30    —  

Pingel Navigation Limited

   Navios Delight    Marshall Is.    03/31 – 09/30    —  

Ebba Navigation Limited

   Navios Destiny    Marshall Is.    03/31 – 09/30    —  

Clan Navigation Limited

   Navios Devotion    Marshall Is.    03/31 – 09/30    —  

Sui An Navigation Limited(23)

   Navios Dedication    Marshall Is.    03/31 – 09/30    —  

Bertyl Ventures Co.

   Navios Azure    Marshall Is.    03/31 – 09/30    —  

Silvanus Marine Company

   Navios Summer    Marshall Is.    03/31 – 09/30    —  

Anthimar Marine Inc.

   Navios Amarillo    Marshall Is.    03/31 – 09/30    —  

Enplo Shipping Limited

   Navios Verde    Marshall Is.    03/31 – 09/30    —  

Morven Chartering Inc.

   Navios Verano    Marshall Is.    03/31 – 09/30    —  

Rodman Maritime Corp.

   Navios Spring    Marshall Is.    03/31 – 09/30    —  

Isolde Shipping Inc.

   Navios Indigo    Marshall Is.    03/31 – 09/30    —  

Velour Management Corp.

   Navios Vermilion    Marshall Is.    03/31 – 09/30    —  

Evian Shiptrade Ltd.

   Navios Amaranth    Marshall Is.    03/31 – 09/30    —  

Theros Ventures Limited

   Navios Lapis    Marshall Is.    03/31 – 09/30    —  

Legato Shipholding Inc.

   Navios Tempo    Marshall Is.    03/31 – 09/30    —  

Inastros Maritime Corp.

   Navios Chrysalis    Marshall Is.    03/31 – 09/30    —  

Zoner Shiptrade S.A.

   Navios Dorado    Marshall Is.    03/31 – 09/30    —  

Jasmer Shipholding Ltd.

   Navios Nerine    Marshall Is.    03/31 – 09/30    —  

Thetida Marine Co.

   Navios Magnolia    Marshall Is.    03/31 – 09/30    —  

Jaspero Shiptrade S.A.

   Navios Jasmine    Marshall Is.    03/31 – 09/30    —  

Peran Maritime Inc.

   Navios Felicitas    Marshall Is.    03/31 – 09/30    —  

Nefeli Navigation S.A.

   Navios Unison    Marshall Is.    03/31 – 09/30    —  

Fairy Shipping Corporation

   Navios Utmost    Marshall Is.    03/31 – 09/30    —  

Limestone Shipping Corporation

   Navios Unite    Marshall Is.    03/31 – 09/30    —  

Crayon Shipping Ltd

   Navios Miami    Marshall Is.    03/31 – 09/30    —  

Chernava Marine Corp.

   Bahamas    Marshall Is.    03/31 – 09/30    —  

Proteus Shiptrade S.A

   Bermuda    Marshall Is.    03/31 – 09/30    —  

Vythos Marine Corp.

   Navios Constellation    Marshall Is.    03/31 – 09/30    —  

Prosperity Shipping Corporation

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

Aldebaran Shipping Corporation

   —      Marshall Is.    01/01 – 09/30    01/01 – 09/30

JTC Shipping and Trading Ltd.(11)

   Holding Company    Malta    01/01 – 09/30    01/01 – 09/30

Navios Maritime Partners L.P.

   N/A    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Maritime Operating LLC.

   N/A    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Partners Finance (US) Inc.

   Co-Borrower    Delaware    01/01 – 09/30    01/01 – 09/30

Navios Partners Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Navios Maritime Containers Sub L.P.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30    —  

Navios Partners Containers Finance Inc.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30    —  

Boheme Navigation Company

   Sub-Holding Company    Marshall Is.    03/31 – 09/30    —  

Navios Partners Containers Inc.

   Sub-Holding Company    Marshall Is.    03/31 – 09/30    —  

Iliada Shipping S.A.

   Operating Company    Marshall Is.    03/31 – 09/30    —  

Vinetree Marine Company

   Operating Company    Marshall Is.    03/31 – 09/30    —  

Afros Maritime Inc.

   Operating Company    Marshall Is.    03/31 – 09/30    —  

Cavos Navigation Co.(9)

   Navios Libra    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Perivoia Shipmanagement Co.(10)

   Navios Amitie    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Pleione Management Limited(10)

   Navios Star    Marshall Is.    01/01 – 09/30    01/01 – 09/30

Bato Marine Corp.(21)

   TBN 1    Marshall Is.    03/05 – 09/30    —  

Agron Navigation Company(21)

   TBN 2    Marshall Is.    03/05 – 09/30    —  

Teuta Maritime S.A.(21)

   TBN 3    Marshall Is.    03/05 – 09/30    —  

Ambracia Navigation Company(21)

   TBN 4    Marshall Is.    03/05 – 09/30    —  

Artala Shipping Co.(22)

   TBN 5    Marshall Is.    03/05 – 09/30    —  

Migen Shipmanagement Ltd.

   Sub-Holding Company    Marshall Is.    03/05 – 09/30    —  

 

F-10


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

 

 

Bole Shipping Corporation(24)

   Spectrum N    Marshall Is.    04/28 – 09/30    —  

Brandeis Shipping Corporation(24)

   Ete N    Marshall Is.    05/10 – 09/30    —  

Buff Shipping Corporation(24)

   Fleur N    Marshall Is.    05/10 – 09/30    —  

Morganite Shipping Corporation(25)

   TBN 6    Marshall Is.    06/01 – 09/30    —  

Balder Martitime Ltd.(26)

   Navios Koyo    Marshall Is.    06/04 – 09/30    —  

Melpomene Shipping Corporation(27)

   TBN 8    Marshall Is.    06/23 – 09/30    —  

Urania Shipping Corporation(27)

   TBN 9    Marshall Is.    06/23 – 09/30    —  

Terpsichore Shipping Corporation(28)

   TBN 10    Marshall Is.    06/23 – 09/30    —  

Erato Shipping Corporation(28)

   TBN 11    Marshall Is.    06/23 – 09/30    —  

Lavender Shipping Corporation(12) (29)

   Navios Ray    Marshall Is.    06/30 – 09/30    —  

Nostos Shipmanagement Corp. (12) (29)

   Navios Bonavis    Marshall Is.    06/30 – 09/30    —  

Navios Maritime Acquisition Corporation

   Sub-Holding Company    Marshall Is.    08/25 – 09/30    —  

Navios Acquisition Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30    —  

Navios Acquisition Finance (US) Inc.

   Co-Issuer of Ship
Mortgage Notes
   Delaware    08/25 – 09/30    —  

Navios Maritime Midstream Partners GP LLC

   Holding Company    Marshall Is.    08/25 – 09/30    —  

Letil Navigation Ltd.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30    —  

Navios Maritime Midstream Partners Finance (US) Inc.

   Sub-Holding Company    Delaware    08/25 – 09/30    —  

Aegean Sea Maritime Holdings Inc.

   Sub-Holding Company    Marshall Is.    08/25 – 09/30    —  

Amorgos Shipping Corporation

   Nave Cosmos    Marshall Is.    08/25 – 09/30    —  

Andros Shipping Corporation

   Nave Polaris    Marshall Is.    08/25 – 09/30    —  

Antikithira Shipping Corporation

   Nave Equator    Marshall Is.    08/25 – 09/30    —  

Antiparos Shipping Corporation

   Nave Atria    Marshall Is.    08/25 – 09/30    —  

Antipaxos Shipping Corporation

   Nave Dorado    Marshall Is.    08/25 – 09/30    —  

Antipsara Shipping Corporation

   Nave Velocity    Marshall Is.    08/25 – 09/30    —  

Crete Shipping Corporation

   Nave Cetus    Marshall Is.    08/25 – 09/30    —  

Delos Shipping Corporation

   Nave Photon    Marshall Is.    08/25 – 09/30    —  

Folegandros Shipping Corporation

   Nave Andromeda    Marshall Is.    08/25 – 09/30    —  

Ikaria Shipping Corporation

   Nave Aquila    Marshall Is.    08/25 – 09/30    —  

Ios Shipping Corporation

   Nave Cielo    Cayman Islands    08/25 – 09/30    —  

Iraklia Shipping Corporation

   Bougainville    Marshall Is.    08/25 – 09/30    —  

Kimolos Shipping Corporation

   Former Vessel-
Owning Company
   Marshall Is.    08/25 – 09/30    —  

Kithira Shipping Corporation

   Nave Orbit    Marshall Is.    08/25 – 09/30    —  

Kos Shipping Corporation

   Nave Bellatrix    Marshall Is.    08/25 – 09/30    —  

Lefkada Shipping Corporation

   Nave Buena Suerte    Marshall Is.    08/25 – 09/30    —  

Leros Shipping Corporation

   Former Vessel-
Owning Company
   Marshall Is.    08/25 – 09/30    —  

Mytilene Shipping Corporation

   Nave Orion    Marshall Is.    08/25 – 09/30    —  

Oinousses Shipping Corporation

   Nave Jupiter    Marshall Is.    08/25 – 09/30    —  

Psara Shipping Corporation

   Nave Luminosity    Marshall Is.    08/25 – 09/30    —  

Rhodes Shipping Corporation

   Nave Cassiopeia    Marshall Is.    08/25 – 09/30    —  

Samos Shipping Corporation

   Nave Synergy    Marshall Is.    08/25 – 09/30    —  

Samothrace Shipping Corporation

   Nave Pulsar    Marshall Is.    08/25 – 09/30    —  

Serifos Shipping Corporation

   Nave Estella    Marshall Is.    08/25 – 09/30    —  

Sifnos Shipping Corporation

   Nave Titan    Marshall Is.    08/25 – 09/30    —  

Skiathos Shipping Corporation

   Nave Capella    Marshall Is.    08/25 – 09/30    —  

Skopelos Shipping Corporation

   Nave Ariadne    Cayman Islands    08/25 – 09/30    —  

Skyros Shipping Corporation

   Nave Sextans    Marshall Is.    08/25 – 09/30    —  

Syros Shipping Corporation

   Nave Alderamin    Marshall Is.    08/25 – 09/30    —  

Thera Shipping Corporation

   Nave Atropos    Marshall Is.    08/25 – 09/30    —  

Tilos Shipping Corporation

   Nave Spherical    Marshall Is.    08/25 – 09/30    —  

Tinos Shipping Corporation

   Nave Rigel    Marshall Is.    08/25 – 09/30    —  

 

F-11


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars - except for unit data)

 

 

Zakynthos Shipping Corporation

   Nave Quasar    Marshall Is.    08/25 – 09/30    —  

Cyrus Investments Corp.

   Baghdad    Marshall Is.    08/25 – 09/30    —  

Olivia Enterprises Corp.

   Erbil    Marshall Is.    08/25 – 09/30    —  

Limnos Shipping Corporation

   Nave Pyxis    Marshall Is.    08/25 – 09/30    —  

Thasos Shipping Corporation

   Nave Equinox    Marshall Is.    08/25 – 09/30    —  

Agistri Shipping Limited

   Operating-Subsidiary    Malta    08/25 – 09/30    —  

Paxos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30    —  

Donoussa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30    —  

Schinousa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30    —  

Alonnisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30    —  

Makronisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    08/25 – 09/30    —