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: May 23, 2022

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  

Exhibit List

     26  

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 month periods ended March 31, 2022 and 2021 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’ 2021 Annual Report filed on Form 20-F with the U.S. Securities and Exchange Commission (the “SEC”) on April 12, 2022.

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’ 2022 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 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, 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, wars, sanctions, 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 drybuk, 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

Acquisition of Vessels

In April 2022, Navios Partners agreed to purchase four 115,000 dwt Aframax/LR2 newbuilding vessels for a purchase price of $58.5 million each (plus $4.2 million in additional features). The vessels have been designed with the latest technology to optimize efficiency. They are expected to be delivered into Navios Partners’ fleet during 2024 and the first quarter of 2025. The closing of the transaction is subject to completion of customary documentation.

Credit Facilities

On May 9, 2022, Navios Partners entered into a new credit facility with a commercial bank for a total amount of up to $25.2 million in order to refinance existing indebtedness and for working capital purposes. The credit facility matures in the second quarter of 2027 and bears interest at Term Secured Overnight Financing Rate (SOFR) plus credit adjustment spread plus 250 bps per annum. On May 11, 2022, the entire amount was drawn under this credit facility.

Overview

We are 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. Olympos Maritime Ltd. is our general partner (the “General Partner”).

As of May 18, 2022, 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 an approximately 2.0% ownership interest in Navios Partners based on all outstanding common units and general partner units.

Fleet

Navios Partners’ fleet consists of 54 Dry bulk vessels, 47 Containerships and 49 Tanker vessels, including three newbuilding Capesize bareboat charter-in vessels expected to be delivered by the second half of 2022, two newbuilding Capesize bareboat charter-in vessels expected to be delivered by the first half of 2023, two newbuilding Panamax vessels expected to be delivered by the second half of 2022 and first half of 2023, one newbuilding VLCC bareboat charter-in vessel expected to be delivered by the second half of 2022, four newbuilding Aframax/LR2 vessels expected to be delivered in 2024 and first half of 2025, ten newbuilding Containerships expected to be delivered by the second half of 2023 and in 2024 and two Containerships agreed to be sold and expected to be delivered in the second half of 2022.

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/or bulk liquid chemicals. 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.

The following table provides summary information about our fleet as of May 16, 2022:

 

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% average BSI 58 10TC      April 2023  

Navios Christine B

   Ultra-Handymax    2009      58,058      $ 40,425      No      June 2022  

Navios Amaryllis

   Ultra-Handymax    2008      58,735      $ 18,098      No      July 2022  
            $ 28,575      No      October 2022  

Serenitas N

   Ultra-Handymax    2011      56,644        —        99.0% average BSI 58 10TC      July 2023  

Navios Hyperion

   Panamax    2004      75,707      $ 23,275      No      June 2022  

Navios Alegria

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

Navios Orbiter

   Panamax    2004      76,602      $ 17,813      No      May 2022  

Navios Helios

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

Navios Sun

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

Navios Hope

   Panamax    2005      75,397        —        100% average BPI 4TC      March 2023  

Navios Sagittarius(5)

   Panamax    2006      75,756      $ 28,500      No      August 2022  

Navios Harmony

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

Navios Prosperity I

   Panamax    2007      75,527        —             Spot  

Navios Libertas

   Panamax    2007      75,511      $ 23,750      No      May 2022  

Navios Symmetry

   Panamax    2006      74,381      $ 18,525      No      June 2022  

 

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Table of Contents

Navios Apollon I

   Panamax    2005      87,052             105.0% average BPI 4TC      November 2022  

Navios Sphera

   Panamax    2016      84,872             108.0% average BPI 82      February 2023  

Navios Camelia

   Panamax    2009      75,162      $ 20,900      No      June 2022  

Navios Anthos

   Panamax    2004      75,798      $ 19,855      No      June 2022  

Copernicus N

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

Unity N

   Panamax    2011      79,642             100.0% average BPI 4TC      July 2022  

Odysseus N

   Panamax    2011      79,642      $ 28,500      No      June 2022  

Navios Victory

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

Navios Avior

   Panamax    2012      81,335                  Spot  

Navios Centaurus

   Panamax    2012      81,472      $ 20,900      No      June 2022  

Navios Beaufiks(6)

   Capesize    2004      180,310      $ 22,563      No      September 2023  

Navios Symphony

   Capesize    2010      178,132             97.0% average BCI 5TC      December 2022  

Navios Fantastiks(7)

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

Navios Aurora II

   Capesize    2009      169,031             99.0% average BCI 5TC      April 2023  

Navios Pollux(7)

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

Navios Sol(8)

   Capesize    2009      180,274      $ 33,440      No      September 2022  
                   110.0% average BCI 5TC      March 2023  

Navios Fulvia

   Capesize    2010      179,263             100.0% average BCI 5TC      January 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 50.0% above

$37,500/day based on

Baltic Exchange Capesize

TC Average

     June 2022  

Navios Luz

   Capesize    2010      179,144             102.0% average BCI 5TC      May 2023  

Navios Ace(9)

   Capesize    2011      179,016             107.25% average BCI 5TC      February 2023  

Navios Aster

   Capesize    2010      179,314      $ 27,731      No      February 2023  

Navios Joy

   Capesize    2013      181,389       
Freight
Voyage
 
 
   No      August 2022  

Navios Gem

   Capesize    2014      181,336      $ 28,500      No      January 2023  

Navios Mars

   Capesize    2016      181,259             126.0% average BCI 5TC      October 2023  

Navios Koyo

   Capesize    2011      181,415             111.0% average BCI 5TC      March 2023  

Navios Ray(10)

   Capesize    2012      179,515             102.0% average BCI 5TC      January 2023  

Navios Bonavis(7)

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

Navios Azimuth

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

Owned Containerships

   Type   

Built

   Capacity
(TEU)
     Charter-Out
Rate(1)
    

Index(2)

   Expiration Date(3)  

Spectrum N

   Containership    2009      2,546      $ 36,538      No      March 2025  

Protostar N

   Containership    2007      2,741      $ 17,775      No      July 2022  
            $ 46,556      No      October 2025  

Fleur N

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

Ete N

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

Navios Summer(6)

   Containership    2006      3,450      $ 16,960      No      May 2022  
            $ 45,480      No      May 2023  
            $ 39,795      No      May 2024  
            $ 30,320      No      May 2025  
            $ 20,845      No      May 2026  
            $ 34,110      No      July 2026  

Matson Oahu(6)

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

Navios Spring(6)

   Containership    2007      3,450      $ 58,500      No      May 2025  

Navios Vermilion(6)

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

Navios Indigo(6)

   Containership    2007      4,250      $ 63,375      No      April 2023  
            $ 43,875      No      April 2024  
            $ 34,125      No      April 2025  
            $ 24,375      No      April 2026  
            $ 41,438      No      August 2026  

Matson Lanai(6)

   Containership    2007      4,250      $ 55,794      No      July 2025  

 

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Table of Contents

Navios Amarillo(6)

   Containership    2007      4,250      $ 20,845      No      January 2023  
            $ 92,381      No      January 2024  
            $ 63,956      No      January 2025  
            $ 28,425      No      January 2026  
            $ 9,475      No      January 2028  

Navios Verde(6)

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

Navios Azure(6)

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

Navios Domino(6)

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

Navios Delight(6)

   Containership    2008      4,250      $ 45,425      No      January 2024  

Navios Destiny(6)

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

Navios Devotion(6)

   Containership    2009      4,250      $ 63,375      No      March 2023  
            $ 43,875      No      March 2024  
            $ 34,125      No      March 2025  
            $ 24,375      No      March 2026  
            $ 41,438      No      July 2026  

Navios Lapis

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

Navios Tempo

   Containership    2009      4,250      $ 44,438      No      September 2025  

Navios Dorado

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

Navios Felicitas

   Containership    2010      4,360      $ 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      December 2022  
            $ 60,000      No      May 2025  

Zim Carmel (ex Bermuda)

   Containership    2010      4,360      $ 61,114      No      April 2023  
            $ 42,164      No      April 2024  
            $ 32,689      No      April 2025  
            $ 23,214      No      April 2026  
            $ 39,795      No      June 2026  

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  
            $ 60,000      No      April 2025  

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(6)(35)

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

Navios Unite(6)(35)

   Containership    2006      8,204      $ 27,840      No      September 2022  

Navios Unison(13)

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

Navios Constellation(13)

   Containership    2011      10,000      $ 26,276      No      June 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    August 2022

Nave Polaris(14)

   Chemical Tanker    2011      25,145        Floating Rate      No    August 2022

Perseus N(12)

   MR1 Product Tanker    2009      36,264      $ 11,356      No    May 2022
            $ 12,591      No    December 2022

Star N

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

Hector N

   MR1 Product Tanker    2008      38,402      $ 12,591      No    August 2022
            $ 14,319      No    June 2023
            $ 15,306      No    August 2023

Nave Dorado(17)

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

Nave Aquila

   MR2 Product Tanker    2012      49,991      $ 15,208      No    September 2022

Nave Atria(18)

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

Nave Capella(20)(13)

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

Nave Alderamin(13)

   MR2 Product Tanker    2013      49,998      $ 12,898      No    May 2022
            $ 13,956      No    December 2022

Nave Pyxis(19)(11)

   MR2 Product Tanker    2014      49,998      $ 14,293      No    July 2022

Nave Bellatrix

   MR2 Product Tanker    2013      49,999      $ 13,084      No    August 2022

Nave Orion

   MR2 Product Tanker    2013      49,999      $ 12,898      No    June 2022
            $ 13,956      No    December 2022

Nave Titan(16)(13)

   MR2 Product Tanker    2013      49,999      $ 12,657      No    August 2022

Nave Luminosity

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

Nave Jupiter(22)

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

Nave Velocity(23)(13)

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

Nave Sextans(13)

   MR2 Product Tanker    2015      49,999      $ 20,213      No    June 2022
            $ 16,844      No    May 2023

Nave Orbit(24)(12)

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

Nave Equator(6)

   MR2 Product Tanker    2009      50,542      $ 13,500      No    October 2022

Bougainville(11)

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

Nave Equinox(25)(12)

   MR2 Product Tanker    2007      50,922      $ 12,591      No    September 2022

Nave Pulsar(6)

   MR2 Product Tanker    2007      50,922      $ 12,097      No    July 2022

Aurora N(27)

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

Lumen N(27)

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

Nave Cetus(28)(13)

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

Nave Ariadne(27)

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

Nave Cielo

   LR1 Product Tanker    2007      74,671        Freight Voyage      No    May 2022

Nave Rigel(28)

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

Nave Atropos(11)

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

Nave Cassiopeia(13)(29)

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

Nave Andromeda(13)(29)

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

Nave Estella(13)

   LR1 Product Tanker    2012      75,000      $ 13,716      No    June 2022
            $ 15,400      No    January 2023

Nave Constellation (34)

   VLCC    2010      296,988        Floating Rate      Yes    December 2022

Nave Universe

   VLCC    2011      297,066        —        —      Spot

Nave Galactic(31)

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

Nave Spherical(32)

   VLCC    2009      297,188        Floating Rate      No    January 2023

Nave Quasar(33)

   VLCC    2010      297,376      $ 16,788      Yes    February 2023

Nave Photon(34)

   VLCC    2008      297,395        Floating Rate      Yes    December 2022

Nave Buena Suerte(21)

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

Nave Synergy

   VLCC    2010      299,973        Freight Voyage      No    June 2022

 

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Table of Contents

Bareboat Chartered-in
vessel

  

Type

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

Index(2)

  

Expiration Date(3)

Navios Libra

   Panamax    2019      82,011      $ 29,099      —      June 2022
              —        109.75% average BPI 82    June 2024

Navios Amitie

   Panamax    2021      82,002      $ 33,177      —      June 2022
              —        110.0% average BPI 82    January 2024

Navios Star

   Panamax    2021      81,994        —        110.0% average BPI 82    February 2024

Nave Electron(21)

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

Baghdad(26)

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

Erbil(26)

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

Bareboat Chartered-in
vessels to be delivered

  

Type

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

Index(2)

  

Expiration Date(3)

TBN I

   Capesize    H2 2022      180,000        —        —      —  

TBN II

   Capesize    H2 2022      180,000        —        —      —  

TBN III

   Capesize    H2 2022      180,000        —        —      —  

TBN VII

   Capesize    H1 2023      180,000        —        —      —  

TBN V

   Capesize    H1 2023      180,000        —        —      —  

TBN XIV (30)

   VLCC    H2 2022      310,000        Floating Rate      Yes    May 2024

Owned Drybulk Vessels -
Panamax to be Delivered

  

Type

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

Index(2)

  

Expiration Date(3)

TBN IV

   Panamax    H2 2022      81,000        —        —      —  

TBN VI

   Panamax    H1 2023      81,000        —        —      —  

Owned Containerships to
be Delivered

  

Type

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

Index(2)

  

Expiration Date(3)

TBN VIII

   Containership    H2 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 IX

   Containership    H2 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 X

   Containership    H1 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 XI

   Containership    H1 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

 

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TBN XII

   Containership    H2 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 XIII

   Containership    H2 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

TBN XV

   Containership    H1 2024      5,300      $ 42,900     No    January 2025
            $ 39,000     No    January 2026
            $ 37,050     No    January 2027
            $ 35,100     No    January 2028
            $ 31,200     No    January 2029
            $ 37,050     No    March 2029

TBN XVI

   Containership    H1 2024      5,300      $ 42,900     No    May 2025
            $ 39,000     No    May 2026
            $ 37,050     No    May 2027
            $ 35,100     No    May 2028
            $ 31,200     No    May 2029
            $ 37,050     No    July 2029

TBN XVII

   Containership    H2 2024      5,300      $ 37,500     No    April 2030

TBN XVIII

   Containership    H2 2024      5,300      $ 37,500     No    April 2030

Owned Tanker Vessels

Aframax / LR2 to be
delivered

  

Type

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

Index(2)

  

Expiration Date(3)

TBN XIX

   Aframax / LR2    H1 2024      115,000        25,576  (8)    —      April 2029

TBN XX

   Aframax / LR2    H2 2024      115,000        25,576  (8)    —      July 2029

TBN XXI

   Aframax / LR2    H2 2024      115,000        —   (15)    —      —  

TBN XXII

   Aframax / LR2    H1 2025      115,000        —   (15)    —      —  

 

(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.

(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 eight 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 four 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 has the option to charter one or both vessels on identical terms to the two first vessels. The option can be exercised through mid-October 2022.

(16)

Charterer’s option to extend the charter for up to six months at $13,716 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.

 

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Table of Contents
(19)

Charterer’s option to extend the charter for up to six months at $15,881 net per day.

(20)

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

(21)

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

(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 18 months at $15,306 net per day.

(25)

The premium for when the vessel is trading on ice or follow ice breaker is $1,481 per day.

(26)

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

(27)

Rate based on Penfield pool earnings.

(28)

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

(29)

Rate based on LR8 pool earnings.

(30)

Bareboat charter based on adjusted TD3C-WS with a floor of $22,572 and collar of $29,700.

(31)

Contract provides adjusted BITR TD3C-TCE index with a floor of $17,775, 100% to Navios up to collar $38,759 and 50% thereafter.

(32)

Contract provides 100% of BITR TD3C-TCE index plus $4,875 premium. Charterer’s option to extend for one year at TD3C-TCE index plus $1,463 premium.

(33)

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

(34)

Contract provides 100% of BITR TD3C-TCE index up to $17,775 and 50% thereafter with a floor at $2,963 and collar at $29,625.

(35)

Vessel agreed to be sold.

Our Charters

We provide seaborne shipping services under short, medium, and long-term time charters with customers that we believe are creditworthy. For the three month period ended March 31, 2022, Cosco represented approximately 10.6% of total revenues. For the three month period ended March 31, 2021, Hyundai Merchant Marine Co., Ltd. (“HMM”), Singapore Marine Pte Ltd. (“Singapore Marine”), and Cargill International S.A. (“Cargill”), represented approximately 21.5%, 19.4% and 12.2%, respectively, 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;

 

   

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

 

   

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

 

   

armed conflicts, such as the Russian/Ukrainian conflicts; and.

 

   

the ongoing global outbreak of COVID-19 or other epidemics or pandemics.

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 2021 Annual Report on Form 20-F for a discussion of certain risks inherent in our business.

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;

 

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Table of Contents
   

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 2021 Annual Report on Form 20-F for a discussion of certain risks inherent in our business.

Results of Operations

Overview

The financial condition and the results of operations presented for the three month periods ended March 31, 2022 and 2021 of Navios Partners presented and discussed below include the following entities:

 

Company name

  

Vessel name

  

Country of incorporation

  

2022

  

2021

Libra Shipping Enterprises Corporation

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Alegria Shipping Corporation

   Navios Alegria    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Felicity Shipping Corporation

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Gemini Shipping Corporation

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Galaxy Shipping Corporation

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Aurora Shipping Enterprises Ltd.

   Navios Hope    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Palermo Shipping S.A

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fantastiks Shipping Corporation(12)

   Navios Fantastiks    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Sagittarius Shipping Corporation(12)

   Navios Sagittarius    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Hyperion Enterprises Inc.

   Navios Hyperion    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Chilali Corp.

   Navios Aurora II    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Surf Maritime Co.

   Navios Pollux    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Pandora Marine Inc.

   Navios Melodia    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Customized Development S.A.

   Navios Fulvia    Liberia    1/01 – 3/31    1/01 – 3/31

Kohylia Shipmanagement S.A.

   Navios Luz    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Orbiter Shipping Corp.

   Navios Orbiter    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Floral Marine Ltd.

   Navios Buena Ventura    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Golem Navigation Limited(13)

   —      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Kymata Shipping Co.

   Navios Helios    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Joy Shipping Corporation

   Navios Joy    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Micaela Shipping Corporation

   Navios Harmony    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Pearl Shipping Corporation

   Navios Sun    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Velvet Shipping Corporation

   Navios La Paix    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Perigiali Navigation Limited(12)

   Navios Beaufiks    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Finian Navigation Co.(12)

   Navios Ace    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Ammos Shipping Corp.

   Navios Prosperity I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Wave Shipping Corp.

   Navios Libertas    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Casual Shipholding Co.(12)

   Navios Sol    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Avery Shipping Company

   Navios Symphony    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Coasters Ventures Ltd.

   Navios Christine B    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Ianthe Maritime S.A.

   Navios Aster    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Rubina Shipping Corporation

   Hyundai Hongkong    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Topaz Shipping Corporation

   Hyundai Singapore    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Beryl Shipping Corporation

   Hyundai Tokyo    Marshall Is.    1/01 – 3/31    1/01 – 3/31

 

10


Table of Contents

Cheryl Shipping Corporation

   Hyundai Shanghai    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Christal Shipping Corporation

   Hyundai Busan    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fairy Shipping Corporation (5)

   Navios Utmost    Marshall Is.    1/01 – 3/31    03/31 – 03/31

Limestone Shipping Corporation (5)

   Navios Unite    Marshall Is.    1/01 – 3/31    03/31 – 03/31

Dune Shipping Corp.

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Citrine Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Cavalli Navigation Inc.

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Seymour Trading Limited(2)

   Navios Altair I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Goldie Services Company

   Navios Symmetry    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Andromeda Shiptrade Limited

   Navios Apollon I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Esmeralda Shipping Corporation

   Navios Sphera    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Triangle Shipping Corporation

   Navios Mars    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Oceanus Shipping Corporation(19)

   Castor N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Cronus Shipping Corporation

   Protostar N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Leto Shipping Corporation(17)

   Esperanza N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Dionysus Shipping Corporation(4)

   Harmony N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Prometheus Shipping Corporation(18)

   Solar N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Camelia Shipping Inc.

   Navios Camelia    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Anthos Shipping Inc.

   Navios Anthos    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Azalea Shipping Inc.(1)

   Navios Azalea    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Amaryllis Shipping Inc.

   Navios Amaryllis    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Zaffre Shipping Corporation(14)

   Serenitas N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Wenge Shipping Corporation(14),(20)

   Joie N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Sunstone Shipping Corporation(14)

   Copernicus N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fandango Shipping Corporation(14)

   Unity N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Flavescent Shipping Corporation(14)

   Odysseus N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Emery Shipping Corporation(15)

   Navios Gem    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Rondine Management Corp.(15)

   Navios Victory    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Prosperity Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Aldebaran Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

JTC Shipping and Trading Ltd.(11)

   Holding Company    Malta    1/01 – 3/31    1/01 – 3/31

Navios Maritime Partners L.P.

   N/A    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Navios Maritime Operating LLC.

   N/A    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Navios Partners Finance (US) Inc.

   Co-Borrower    Delaware    1/01 – 3/31    1/01 – 3/31

Navios Partners Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Solange Shipping Ltd.(16)

   Navios Avior    Marshall Is.    1/01 – 3/31    03/30 – 3/31

Mandora Shipping Ltd.(16)

   Navios Centaurus    Marshall Is.    1/01 – 3/31    03/30 – 3/31

Olympia II Navigation Limited

   Navios Domino    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Pingel Navigation Limited

   Navios Delight    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Ebba Navigation Limited

   Navios Destiny    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Clan Navigation Limited

   Navios Devotion    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Sui An Navigation Limited(23)

   Navios Dedication    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Bertyl Ventures Co.

   Navios Azure    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Silvanus Marine Company

   Navios Summer    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Anthimar Marine Inc.

   Navios Amarillo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Enplo Shipping Limited

   Navios Verde    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Morven Chartering Inc.

   Matson Oahu    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Rodman Maritime Corp.

   Navios Spring    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Isolde Shipping Inc.

   Navios Indigo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Velour Management Corp.

   Navios Vermilion    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Evian Shiptrade Ltd.

   Matson Lanai    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Theros Ventures Limited

   Navios Lapis    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Legato Shipholding Inc.

   Navios Tempo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Inastros Maritime Corp.

   Navios Chrysalis    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Zoner Shiptrade S.A.

   Navios Dorado    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Jasmer Shipholding Ltd.

   Navios Nerine    Marshall Is.    1/01 – 3/31    03/31 – 3/31

 

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Table of Contents

Thetida Marine Co.

   Navios Magnolia    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Jaspero Shiptrade S.A.

   Navios Jasmine    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Peran Maritime Inc.

   Navios Felicitas    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Nefeli Navigation S.A.

   Navios Unison    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Crayon Shipping Ltd

   Navios Miami    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Chernava Marine Corp.

   Bahamas    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Proteus Shiptrade S.A

   Zim Carmel    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Vythos Marine Corp.

   Navios Constellation    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Maritime Containers Sub L.P.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Partners Containers Finance Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Boheme Navigation Company

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Partners Containers Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Iliada Shipping S.A.

   Operating Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Vinetree Marine Company

   Operating Company    Marshall Is.    01/01 – 3/31    03/31 – 3/31

Afros Maritime Inc.

   Operating Company    Marshall Is.    01/01 – 3/31    03/31 – 3/31

Cavos Navigation Co.(9)

   Navios Libra    Marshall Is.    01/01 – 3/31    01/01 – 3/31

Perivoia Shipmanagement Co.(10)

   Navios Amitie    Marshall Is.    01/01 – 3/31    01/01 – 3/31

Pleione Management Limited(10)

   Navios Star    Marshall Is.    01/01 – 3/31    01/01 – 3/31

Bato Marine Corp.(21)

   TBN I    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Agron Navigation Company(21)

   TBN II    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Teuta Maritime S.A.(22)

   TBN VII    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Ambracia Navigation Company(21)

   TBN IV    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Artala Shipping Co.(22)

   TBN V    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Migen Shipmanagement Ltd.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Bole Shipping Corporation(24)

   Spectrum N    Marshall Is.    01/01 – 3/31    —  

Brandeis Shipping Corporation(24)

   Ete N    Marshall Is.    01/01 – 3/31    —  

Buff Shipping Corporation(24)

   Fleur N    Marshall Is.    01/01 – 3/31    —  

Morganite Shipping Corporation(25)

   TBN VI    Marshall Is.    01/01 – 3/31    —  

Balder Martitime Ltd.(26)

   Navios Koyo    Marshall Is.    01/01 – 3/31    —  

Melpomene Shipping Corporation(27)

   TBN VIII    Marshall Is.    01/01 – 3/31    —  

Urania Shipping Corporation(27)

   TBN IX    Marshall Is.    01/01 – 3/31    —  

Terpsichore Shipping Corporation(8)

   TBN X    Marshall Is.    01/01 – 3/31    —  

Erato Shipping Corporation(8)

   TBN XI    Marshall Is.    01/01 – 3/31    —  

Lavender Shipping Corporation(12) (7)

   Navios Ray    Marshall Is.    01/01 – 3/31    —  

Nostos Shipmanagement Corp.(12) (7)

   Navios Bonavis    Marshall Is.    01/01 – 3/31    —  

Navios Maritime Acquisition Corporation

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Navios Acquisition Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Navios Acquisition Finance (US) Inc.

   Co-Issuer of Ship Mortgage Notes    Delaware    01/01 – 3/31    —  

Navios Maritime Midstream Partners GP LLC

   Holding Company    Marshall Is.    01/01 – 3/31    —  

Letil Navigation Ltd.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Navios Maritime Midstream Partners Finance (US) Inc.

   Sub-Holding Company    Delaware    01/01 – 3/31    —  

Aegean Sea Maritime Holdings Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Amorgos Shipping Corporation

   Nave Cosmos    Marshall Is.    01/01 – 3/31    —  

Andros Shipping Corporation

   Nave Polaris    Marshall Is.    01/01 – 3/31    —  

Antikithira Shipping Corporation

   Nave Equator    Marshall Is.    01/01 – 3/31    —  

Antiparos Shipping Corporation

   Nave Atria    Marshall Is.    01/01 – 3/31    —  

Antipaxos Shipping Corporation

   Nave Dorado    Marshall Is.    01/01 – 3/31    —  

Antipsara Shipping Corporation

   Nave Velocity    Marshall Is.    01/01 – 3/31    —  

Crete Shipping Corporation

   Nave Cetus    Marshall Is.    01/01 – 3/31    —  

 

12


Table of Contents

Delos Shipping Corporation

   Nave Photon    Marshall Is.    01/01 – 3/31    —  

Folegandros Shipping Corporation

   Nave Andromeda    Marshall Is.    01/01 – 3/31    —  

Ikaria Shipping Corporation

   Nave Aquila    Marshall Is.    01/01 – 3/31    —  

Ios Shipping Corporation

   Nave Cielo    Cayman Islands    01/01 – 3/31    —  

Iraklia Shipping Corporation

   Bougainville    Marshall Is.    01/01 – 3/31    —  

Kimolos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Kithira Shipping Corporation

   Nave Orbit    Marshall Is.    01/01 – 3/31    —  

Kos Shipping Corporation

   Nave Bellatrix    Marshall Is.    01/01 – 3/31    —  

Lefkada Shipping Corporation

   Nave Buena Suerte    Marshall Is.    01/01 – 3/31    —  

Leros Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Mytilene Shipping Corporation

   Nave Orion    Marshall Is.    01/01 – 3/31    —  

Oinousses Shipping Corporation

   Nave Jupiter    Marshall Is.    01/01 – 3/31    —  

Psara Shipping Corporation

   Nave Luminosity    Marshall Is.    01/01 – 3/31    —  

Rhodes Shipping Corporation

   Nave Cassiopeia    Marshall Is.    01/01 – 3/31    —  

Samos Shipping Corporation

   Nave Synergy    Marshall Is.    01/01 – 3/31    —  

Samothrace Shipping Corporation

   Nave Pulsar    Marshall Is.    01/01 – 3/31    —  

Serifos Shipping Corporation

   Nave Estella    Marshall Is.    01/01 – 3/31    —  

Sifnos Shipping Corporation

   Nave Titan    Marshall Is.    01/01 – 3/31    —  

Skiathos Shipping Corporation

   Nave Capella    Marshall Is.    01/01 – 3/31    —  

Skopelos Shipping Corporation

   Nave Ariadne    Cayman Islands    01/01 – 3/31    —  

Skyros Shipping Corporation

   Nave Sextans    Marshall Is.    01/01 – 3/31    —  

Syros Shipping Corporation

   Nave Alderamin    Marshall Is.    01/01 – 3/31    —  

Thera Shipping Corporation

   Nave Atropos    Marshall Is.    01/01 – 3/31    —  

Tilos Shipping Corporation

   Nave Spherical    Marshall Is.    01/01 – 3/31    —  

Tinos Shipping Corporation

   Nave Rigel    Marshall Is.    01/01 – 3/31    —  

Zakynthos Shipping Corporation

   Nave Quasar    Marshall Is.    01/01 – 3/31    —  

Cyrus Investments Corp.

   Baghdad    Marshall Is.    01/01 – 3/31    —  

Olivia Enterprises Corp.

   Erbil    Marshall Is.    01/01 – 3/31    —  

Limnos Shipping Corporation

   Nave Pyxis    Marshall Is.    01/01 – 3/31    —  

Thasos Shipping Corporation

   Nave Equinox    Marshall Is.    01/01 – 3/31    —  

Agistri Shipping Limited

   Operating Subsidiary    Malta    01/01 – 3/31    —  

Paxos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Donoussa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Schinousa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Alonnisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Makronisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Shinyo Loyalty Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31    —  

Shinyo Navigator Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31    —  

Amindra Navigation Co.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Navios Maritime Midstream Partners L.P.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Navios Maritime Midstream Operating LLC

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    —  

Shinyo Dream Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31    —  

Shinyo Kannika Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31    —  

 

13


Table of Contents

Shinyo Kieran Limited

   Nave Universe    British Virgin Islands    01/01 – 3/31    —  

Shinyo Ocean Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31    —  

Shinyo Saowalak Limited

   Nave Constellation    British Virgin Islands    01/01 – 3/31    —  

Sikinos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Kerkyra Shipping Corporation

   Nave Galactic    Marshall Is.    01/01 – 3/31    —  

Doxa International Corp.

   Nave Electron    Marshall Is.    01/01 – 3/31    —  

Alkmene Shipping Corporation

   Star N    Marshall Is.    01/01 – 3/31    —  

Aphrodite Shipping Corporation

   Aurora N    Marshall Is.    01/01 – 3/31    —  

Dione Shipping Corporation

   Lumen N    Marshall Is.    01/01 – 3/31    —  

Persephone Shipping Corporation

   Hector N    Marshall Is.    01/01 – 3/31    —  

Rhea Shipping Corporation

   Perseus N    Marshall Is.    01/01 – 3/31    —  

Tzia Shipping Corporation (21)

   TBN XIV    Marshall Is.    01/01 – 3/31    —  

Boysenberry Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Cadmium Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Celadon Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Cerulean Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31    —  

Kleio Shipping Corporation (6)

   TBN XII    Marshall Is.    01/01 – 3/31    —  

Polymnia Shipping Corporation (6)

   TBN XIII    Marshall Is.    01/01 – 3/31    —  

Goddess Shiptrade Inc. (21)

   TBN III    Marshall Is.    01/01 – 3/31    —  

Navios Acquisition Merger Sub.Inc.

   Merger SPV    Marshall Is.    01/01 – 3/31    —  

Aramis Navigation Inc.(3)

   Navios Azimuth    Marshall Is.    01/01 – 3/31    —  

Thalia Shipping Corporation (6)

   TBN XVII    Marshall Is.    01/01 – 3/31    —  

Muses Shipping Corporation (6)

   TBN XVIII    Marshall Is.    01/01 – 3/31    —  

Euterpe Shipping Corporation (8)

   TBN XVI    Marshall Is.    01/01 – 3/31    —  

Calliope Shipping Corporation (8)

   TBN XV    Marshall Is.    01/01 – 3/31    —  

 

(1)

The vessel was sold on August 13, 2021.

(2)

The vessel was sold on October 29, 2021.

(3)

The vessel was acquired on July 9, 2021.

(4)

The vessel was sold on August 16, 2021.

(5)

The vessel agreed to be sold in February 2022.

(6)

Expected to be delivered by the second half of 2024.

(7)

The vessel was acquired on June 30, 2021.

(8)

Expected to be delivered by the first half of 2024.

(9)

The vessel was delivered on July 24, 2019 (see Note 15 – Leases to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(10)

The vessels were delivered on May 28, 2021 and June 10, 2021 (see Note 15 - Leases to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(11)

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

(12)

Vessels under the sale and leaseback transaction.

(13)

The vessel was sold on December 10, 2020.

(14)

The vessels were acquired on June 29, 2020, following the liquidation of Navios Europe II.

(15)

The vessels were acquired on September 30, 2020.

(16)

The vessels were acquired on March 30, 2021 (see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(17)

The vessel was sold on January 13, 2021(see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(18)

The vessel was sold on January 28, 2021 (see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(19)

The vessel was sold on February 10, 2021 (see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(20)

The vessel was sold on March 25, 2021 (see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report).

(21)

Expected to be delivered by the second half of 2022.

 

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Table of Contents
(22)

Expected to be delivered in the first half of 2023.

(23)

The vessel was sold on July 31, 2021.

(24)

The vessels were acquired on May 10, 2021.

(25)

Expected to be delivered in the first half of 2023.

(26)

The vessel was acquired on June 4, 2021.

(27)

Expected to be delivered by the second half of 2023.

The following table reflects certain key indicators of Navios Partners’ fleet performance for the three month periods ended March 31, 2022 and 2021

 

     Three Month
Period Ended
March 31, 2022
(unaudited)
    Three Month
Period Ended
March 31, 2021
(unaudited)
 

Available Days(1)

     11,228       4,252  

Operating Days(2)

     11,072       4,201  

Fleet Utilization(3)

     98.6     98.8

Time Charter Equivalent rate (per day) (4)

   $ 20,386     $ 14,836  

Vessels operating at period end

     128       79  

 

(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”) and the merger with Navios Acquisition (“NNA Merger”), the results of operations of Navios Containers and Navios Acquisition are included in Navios Partners’ condensed Consolidated Statements of Operations.

The following table presents consolidated revenue and expense information for the three month periods ended March 31, 2022 and 2021.

 

     Three Month
Period Ended
March 31, 2022
($ ‘000)
(unaudited)
     Three Month
Period Ended
March 31, 2021
($ ‘000)
(unaudited)
 

Time charter and voyage revenues

   $ 236,617      $ 65,063  

Time charter and voyage expenses

     (17,143      (2,495

Direct vessel expenses

     (11,193      (3,154

Vessel operating expenses

     (73,172      (22,962

General and administrative expenses

     (13,916      (4,907

Depreciation and amortization of intangible assets

     (42,866      (13,087

Amortization of unfavorable lease terms

     21,839        —    

Loss on sale of vessels

     —          (511

Interest expense and finance cost, net

     (13,227      (5,844

Interest income

     2        115  

Other expense, net

     (1,276      (431

Equity in net earnings of affiliated companies

     —          80,839  

Bargain gain

     —          44,053  
  

 

 

    

 

 

 

Net income

   $ 85,665      $ 136,679  
  

 

 

    

 

 

 

EBITDA(1)

   $ 126,118      $ 158,551  
  

 

 

    

 

 

 

Adjusted EBITDA(1)

   $ 126,118      $ 33,659  
  

 

 

    

 

 

 

Operating Surplus(1)

   $ 55,825      $ 11,998  
  

 

 

    

 

 

 

 

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Table of Contents
(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 March 31, 2022 compared to the Three Month Period ended March 31, 2021

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the three month period ended March 31, 2022 increased by approximately $171.5 million, or 263.4%, to $236.6 million, as compared to $65.1 million for the same period in 2021. 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 March 31, 2022, despite the fact that time charter and voyage revenues was negatively affected by $4.8 million related to the straight line effect of the containerships charters with de-escalating rates, TCE rate increased by 37.4% to $20,386 per day, as compared to $14,836 per day for the same period in 2021. The available days of the fleet increased by 164.1% to 11,228 days for the three month period ended March 31, 2022, as compared to 4,252 for the same period in 2021 mainly due to the NMCI Merger and the NNA Merger.

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended March 31, 2022 increased by approximately $14.6 million to $17.1 million, as compared to $2.5 million for the three month period ended March 31, 2021 mainly due to the increase in the size of our fleet. The increase was mainly attributable to a: (i) $7.1 million increase in bareboat charter-in hire expense due to the delivery of two bareboat-in vessel during the second quarter of 2021 and the NNA Merger; (ii) $2.5 million increase in bunkers expenses; (iii) $2.3 million increase in brokers’ commissions; (iv) $2.0 million net increase in other voyage expenses; and (v) $0.7 million increase in port expenses related to the freight voyages.

Direct vessel expenses: Direct vessel expenses, for the three month period ended March 31, 2022 increased by $8.0 million, to $11.2 million, as compared to $3.2 million for the three month period ended March 31, 2021. The increase of $8.0 million was mainly attributable to the amortization of deferred drydock and special survey costs due to the increase in the size of our fleet, and crew related expenses as a result of COVID-19 measures pursuant to the terms of the Management Agreements, as defined herein.

Vessel operating expenses: Vessel operating expenses for the three month period ended March 31, 2022, increased by approximately $50.2 million, or 218.3%, to $73.2 million, as compared to $23.0 million for the same period in 2021. The increase was mainly due to the increase in the size of our fleet.

General and administrative expenses: General and administrative expenses increased by $9.0 million to $13.9 million for the three month period ended March 31, 2022, as compared to $4.9 million for the three month period ended March 31 , 2021. The increase was mainly due to a: (i) $6.5 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) $2.6 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 of intangible assets amounted to $42.9 million for the three month period ended March 31, 2022, as compared to $13.1 million for the three month period ended March 31, 2021. The increase of approximately $29.8 million was mainly attributable to: (i) a $19.6 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 $2.4 million increase in depreciation expense due to the delivery of nine vessels in 2021; and (iv) a $0.2 million increase in depreciation expense due to vessel additions. The above increase was partially mitigated by a $0.5 million decrease due to the sale of eight vessels in 2021.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $21.8 million for the three month period ended March 31, 2022, that 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.

Loss on sale of vessels: There was no loss on sale of vessels for the three month period ended March 31, 2022. Loss on sale of vessels amounted to $0.5 million for the three month period ended March 31, 2021, relating to a loss on sale of the Joie N that amounted to $1.4 million which was partially mitigated by a gain on sale of the Esperanza N and the Solar N that amounted to $0.9 million.

Interest expense and finance cost, net: Interest expense and finance cost, net, for the three month period ended March 31, 2022 increased by approximately $7.4 million or 127.6% to $13.2 million, as compared to $5.8 million for the three month period ended March 31, 2021. 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 NNA Merger.

Interest income: Interest income amounted to $0.1 million for the three month period ended March 31, 2021.

Other expense, net: Other expense, net for the three month period ended March 31, 2022 amounted to $1.3 million, as compared to $0.4 million for the three month period ended March 31, 2021, mainly due to the increase in other miscellaneous expenses.

Equity in net earnings of affiliated companies: There was no equity in net earnings of affiliated companies for the three month period ended March 31, 2022. Equity in net earnings of affiliated companies for the three month period ended March 31, 2021 amounted to $80.8 million. The amount of $80.8 million is the gain from equity in net earnings resulting from remeasurement of existing interest held in Navios Containers upon the NMCI Merger. 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.

 

16


Table of Contents

Bargain gain: There was no bargain gain for the three month period ended March 31, 2022. Bargain gain amounted to $44.1 million for the three month period ended March 31, 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.

Net income: Net income for the three month period ended March 31, 2022 amounted to $85.7 million as compared to $136.7 million net income for the three month period ended March 31, 2021. The decrease of $51.0 million was due to the factors discussed above.

Operating surplus: Navios Partners generated Operating Surplus for the three month period ended March 31, 2022 of $55.8 million, as compared to $12.0 million for the three month period ended March 31, 2021. 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).

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.

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. 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. As of March 31, 2022, Navios Partners’ current assets totaled $208.6 million, while current liabilities totaled $325.8 million, resulting in a negative working capital position of $117.2 million. Navios Partners’ cash forecast indicates that it will generate sufficient cash through its contracted revenue of $2.8 billion as of May 16, 2022 and cash proceeds from sale of vessels (see Note 5 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report) to make the required principal and interest payments on its indebtedness, provide for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of our 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.

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 March 31, 2022 and December 31, 2021, total borrowings, net of deferred finance costs amounted to $1,319.8 million and $1,361.7 million, respectively. The current portion of long-term borrowings, net amounted to $245.2 million at March 31, 2022 and $255.1 million at December 31, 2021.

Credit Facilities

As of March 31, 2022, the Company had secured credit facilities with various banks with a total outstanding balance of $801.7 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 rate (as defined in the loan agreement) plus spread ranging from 225 bps to 350 bps, per annum. The facilities are repayable in either semi-annual or quarterly installments, followed by balloon payments with maturities, ranging from the first quarter of 2023 to the first quarter of 2027.

ABN Amro Bank N.V.: On March 28, 2022, Navios Partners entered into a new credit facility with ABN Amro Bank N.V. of up to $55.0 million in order to refinance the existing indebtedness of three of its vessels and for general corporate purposes. On March 31, 2022, the full amount was drawn. As of March 31, 2022, the total outstanding balance was $55.0 million and is repayable in 20 consecutive quarterly installments of $1.7 million each together with a final balloon payment of $21.0 million to be paid on the last repayment date. The facility matures in the first quarter of 2027 and bears interest at daily cumulative or non-cumulative compounded RFR rate (as defined in the loan agreement) plus 225 bps per annum.

Amounts drawn under the credit facilities are secured by first preferred mortgages on certain Navios Partners’ vessels and other collateral and are guaranteed by the respective vessel-owning subsidiaries.

 

17


Table of Contents

Credit Facilities and Financial Liabilities

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’, Angeliki Frangou’s or their 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 Agreements (as defined herein).

As of each of March 31, 2022 and December 31, 2021, the security deposits under certain sale and leaseback agreements were $10.1 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 $0.5 million per owned vessel and a number of vessels as defined in the Company’s credit facilities and financial liabilities; (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 and financial liabilities) 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 March 31, 2022, 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 three month periods ended March 31, 2022 and 2021.

 

     Three Month
Period Ended
March 31, 2022
($ ‘000)
(unaudited)
     Three Month
Period Ended
March 31, 2021
($‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 5,153      $ 16,177  

Net cash (used in)/ provided by investing activities

     (21,669      5,638  

Net cash used in financing activities

     (44,734      (1,163
  

 

 

    

 

 

 

(Decrease)/ Increase in cash, cash equivalents and restricted cash

   $ (61,250    $ 20,652  
  

 

 

    

 

 

 

Cash provided by operating activities for the three month period ended March 31, 2022 as compared to the cash provided by operating activities for the three month period ended March 31, 2021

Net cash provided by operating activities decreased by $11.0 million to $5.2 million of cash provided by operating activities for the three month period ended March 31, 2022, as compared to $16.2 million of cash provided by operating activities for the same period in 2021. In determining net cash provided by operating activities, net income 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 $33.5 million non-cash positive net adjustments for the three month period ended March 31, 2022, which consisted mainly of the following adjustments: (i) $42.9 million depreciation and amortization of intangible assets; (ii) $6.2 million amortization of deferred dry dock and special survey costs; (iii) $5.1 million non-cash amortization of deferred revenue and straight line; and (iv) $1.3 million amortization and write-off of deferred finance costs and discount. These adjustments were partially mitigated by: (i) $21.8 million amortization of unfavorable lease terms; and (ii) $0.2 million amortization of operating lease assets/ liabilities.

The net cash outflow resulting from the change in operating assets and liabilities of $114.0 million for the three month period ended March 31, 2022 resulted from a $64.2 million decrease in amounts due to related parties, an $18.5 million increase in amounts due from related parties, a $15.4 increase in accounts receivable, a $10.5 million increase in prepaid expenses and other current assets, $ 9.4 million in payments for dry dock and special survey costs, and a $4.8 million decrease in deferred revenue. This was partially mitigated by a $4.9 million increase in accrued expenses and a $3.9 million increase in accounts payable.

The aggregate adjustments to reconcile net income to net cash provided by operating activities was approximately $106.9 million non-cash negative adjustments for the three month period ended March 31, 2021, which consisted mainly of the following adjustments: $13.1 million depreciation and amortization, $0.3 million amortization of operating lease assets/ liabilities, $0.1 million equity compensation expense, $0.5 million loss on sale of vessels, $1.3 million amortization and write-off of deferred finance costs and discount, $3.1 million amortization of deferred dry dock and special survey costs, $80.8 million equity in net earnings of affiliated companies, $44.1 million bargain gain from merger with Navios Containers and $0.4 million non-cash amortization of deferred revenue and straight line.

The net cash outflow resulting from the change in operating assets and liabilities of $13.6 million for the three month period ended March 31, 2021 resulted from a $0.5 million increase in accounts receivable, a $4.7 million increase in prepaid expenses and other current assets, a $0.4 million decrease in accrued expenses, an $11.8 million in payments for dry dock and special survey costs and a $0.3 million decrease in operating lease liabilities short and long term. This was partially mitigated by a $1.4 million increase in accounts payable and a $2.7 million increase in deferred revenue.

 

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Table of Contents

Cash used in investing activities for the three month period ended March 31, 2022 as compared to the cash provided by investing activities for the three month period ended March 31, 2021

Net cash used in investing activities for the three month period ended March 31, 2022 amounted to $21.7 million as compared to $5.6 million cash provided by investing activities for the three month period ended March 31, 2021.

Cash used in investing activities of approximately $21.7 million for the three month period ended March 31, 2022 was mainly due to: (i) $19.0 million relating to deposits for the acquisition/ option to acquire vessels and capitalized expenses; and (ii) $2.7 million related to vessels’ additions.

Cash provided by investing activities of approximately $5.6 million for the three month period ended March 31, 2021 was mainly due to: (i) $32.7 million of proceeds related to the sale of four vessels; and (ii) $10.3 million cash acquired from Navios Containers following the merger. This was partially mitigated by $37.3 million related to vessel acquisitions, additions and capitalized expenses for two bareboat charter-in vessels.

Cash used in financing activities for the three month period ended March 31, 2022 as compared to cash used in financing activities for the three month period ended March 31, 2021

Net cash used in financing activities increased by $43.5 million to $44.7 million outflow for the three month period ended March 31, 2022, as compared to $1.2 million outflow for the same period in 2021.

Cash used in financing activities of $44.7 million for the three month period ended March 31, 2022 was mainly due to: (i) loans and financial liabilities repayments of $97.2 million; (ii) payment of total cash distributions of $1.5 million; and (iii) payment of $1.0 million of deferred finance costs relating to the new credit facilities. This was partially mitigated by $55.0 million of proceeds from the new credit facility.

Cash used in financing activities of $1.2 million for the three month period ended March 31, 2021 was mainly due to: (i) a payment of a total cash distribution of $0.6 million; (ii) a payment of $0.4 million of deferred finance costs related to the new credit facility; and (iii) loans and financial liabilities repayments of $72.0 million. This total increase was partially mitigated by: (i) $58.0 million of proceeds from the loan drawdown of its credit facility with Credit Agricole Corporate and Investment Bank; (ii) $9.7 million proceeds from the issuance of common units; and (iii) $4.1 million of proceeds from issuance of general partner units.

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

 

     Three Month
Period Ended
March 31, 2022
($ ‘000)
(unaudited)
     Three Month
Period Ended
March 31, 2021
($ ‘000)
(unaudited)
 

Net cash provided by operating activities

   $ 5,153      $ 16,177  

Net increase in operating assets

     53,956        16,975  

Net decrease/ (increase) in operating liabilities

     60,013        (3,441

Net interest cost

     13,225        5,729  

Amortization and write-off of deferred financing cost

     (1,324      (1,290

Amortization of operating lease assets/ liabilities

     211        (255

Non-cash amortization of deferred revenue and straight line

     (5,074      393  

Stock-based compensation

     (42      (118

Loss on sale of vessel

     —          (511

Bargain gain

     —          44,053  

Equity in net earnings of affiliated companies

     —          80,839  
  

 

 

    

 

 

 

EBITDA(1)

   $ 126,118      $ 158,551  

Equity in net earnings of affiliated companies

     —          (80,839

Bargain gain

     —          (44,053
  

 

 

    

 

 

 

Adjusted EBITDA(1)

   $ 126,118      $ 33,659  

Cash interest income

     2        1  

Cash interest paid

     (11,252      (4,675

Maintenance and replacement capital expenditures

     (59,043      (16,987
  

 

 

    

 

 

 

Operating Surplus(2)

   $ 55,825      $ 11,998  
  

 

 

    

 

 

 
     Three Month
Period Ended
March 31, 2022
(unaudited)
     Three Month
Period Ended
March 31, 2021
(unaudited)
 

Net cash provided by operating activities

   $ 5,153      $ 16,177  

Net cash (used in)/ provided by investing activities

   $ (21,669    $ 5,638  

Net cash used in financing activities

   $ (44,734    $ (1,163

 

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Table of Contents

(1) EBITDA and Adjusted EBITDA

EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA before equity in net earnings of affiliated companies 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) non-cash amortization of deferred revenue and straight line; (vii) stock-based compensation expense; (viii) amortization of operating lease assets/ liabilities; (ix) loss on sale of assets and (x) bargain gain. 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 for the three month period ended March 31, 2021 was affected by the accounting effect of: (i) a $44.1 million bargain gain; and (ii) an $80.8 million gain from equity in net earnings of affiliated companies resulting from remeasurment of existing interest held in Navios Container. Excluding these items, Adjusted EBITDA increased by approximately $92.4 million to $126.1 million for the three month period ended March 31, 2022, as compared to $33.7 million for the same period in 2021. The increase in Adjusted EBITDA was primarily due to a: (i) $171.5 million increase in time charter and voyage revenues; and (ii) $0.5 million decrease in loss on sale of vessels. The above increase was partially mitigated by a: (i) $50.2 million increase in vessel operating expenses, mainly due to the increased fleet; (ii) $14.6 million increase in time charter and voyage expenses; (iii) $9.0 million increase in general and administrative expenses, mainly due to the increased fleet; (iv) $4.9 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (v) $0.9 million increase in other expense, net.

(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 three month periods ended March 31, 2022 and 2021 amounted to $21.7 million and $37.3 million, respectively. The reserves for estimated maintenance and replacement capital expenditures for the three month periods ended March 31, 2022 and 2021 were $59.0 million and $17.0 million, respectively.

Maintenance for our vessels and expenses related to drydocking expenses are reimbursed at cost by Navios Partners to our Managers under the Management Agreements (as defined herein).

Maintenance and Replacement Capital Expenditures Reserve

We estimate that our annual replacement reserve for the year ending December 31, 2022 will be approximately $236.2 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 and tanker 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.

 

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Table of Contents

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.

Vessels to be delivered

In April 2022, Navios Partners agreed to purchase four 115,000 dwt Aframax/LR2 newbuilding vessels for a purchase price of $58.5 million each (plus $4.2 million in additional features). The vessels have been designed with the latest technology to optimize efficiency. They are expected to be delivered into Navios Partners’ fleet during 2024 and the first quarter of 2025. The closing of the transaction is subject to completion of customary documentation.

Pursuant to a novation agreement dated January 28, 2022 the Company agreed to novate the shipbuilding contract and to simultaneously enter into a bareboat charter agreement to bareboat charter-in a newbuilding Panamax vessel, under a ten-year bareboat contract, from an unrelated third party. 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 agreed to pay in total $6.9 million, of which $3.4 million was paid in July 2021 and the remaining amount will be paid during the second quarter of 2022. In January 2022, Navios Partners declared its option to purchase the vessel. As of March 31, 2022, the total amount of $3.4 million is presented under the caption “Deposits for vessels acquisitions” in the condensed Consolidated Balance Sheets.

In November 2021, Navios Partners agreed to purchase four 5,300 TEU newbuilding containerships (two plus two optional), from an unrelated third party, for a purchase price of $62.8 million each. The vessels are expected to be delivered into Navios Partners’ fleet during the first and the second half of 2024. Navios Partners agreed to pay in total $25.1 million in four installments for each vessel and the remaining amount of $37.7 million plus extras for each vessel will be paid upon delivery of the vessel. In the first quarter of 2022, the aggregate amount of $12.6 million in relation to the first installment for two vessels, was paid. As of March 31, 2022, the total amount of $12.6 million is presented under the caption “Deposits for vessels acquisitions” in the condensed Consolidated Balance Sheets.

On October 1, 2021, Navios Partners exercised its option to acquire two 5,300 TEU newbuilding containerships, from an unrelated third party, 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 of $43.1 million for each vessel plus extras will be paid upon delivery of the vessel. On November 15, 2021, the first installment of each vessel of approximately $6.2 million, or $12.3 million accumulated for the two vessels, was paid. As of March 31, 2022, the total amount of $12.3 million is presented under the caption “Deposits for vessels acquisitions” in the condensed Consolidated Balance Sheets.

On July 2, 2021, Navios Partners agreed to purchase four 5,300 TEU newbuilding containerships, from an unrelated third party, 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 of $43.1 million for each vessel plus extras will be paid upon delivery of the vessel. On August 13, 2021, the first installment of each vessel of approximately $6.2 million, or $24.6 million accumulated for the four vessels, was paid. As of March 31, 2022, the total amount of $24.6 million is presented under the caption “Deposits for vessels acquisitions” in the condensed Consolidated Balance Sheets.

Pursuant to a novation agreement dated December 20, 2021 the Company agreed to novate the shipbuilding contract and to simultaneously enter into a bareboat charter agreement to bareboat charter-in a newbuilding Panamax vessel, under a ten-year bareboat contract, from an unrelated third party. 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 agreed to pay in total $6.3 million, of which approximately $3.2 million was paid in April 2021 and the remaining amount was paid in the first quarter of 2022. In December 2021, Navios Partners declared its option to purchase the vessel. As of March 31, 2022, the total amount of $6.3 million is presented under the caption “Deposits for vessels acquisitions” in the condensed Consolidated Balance Sheets.

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 vessel after the end of the fourth year of which $6.0 million was paid in September 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. In September 2021, Navios Partners declared its option to purchase the vessel. As of March 31, 2022, the total amount of $6.1 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.    

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 vessel after the end of the fourth year of which approximately $1.8 million was paid in August 2021 and the remaining amount will be paid upon the delivery of the vessel. The vessel is expected to be delivered by the first half of 2023. As of March 31, 2022, the total amount of $1.8 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

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 options 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 options to acquire the vessels after the end of the fourth year, of which approximately $5.3 million was paid in August 2021 and the remaining amount 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 and the first half of 2023. As of March 31, 2022, the total amount of $5.4 million, including expenses, is presented under the caption “Other long-term assets” in the condensed Consolidated Balance Sheets.

 

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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.

 

   

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.

 

   

Even if our cash distribution policy is not modified or revoked, the amount of distributions we pay under our cash distribution policy and the decision to make any distribution is determined by our board of directors, taking into consideration the terms of our partnership agreement

 

   

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, 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. 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 April 2022, the Board of Directors of Navios Partners authorized its quarterly cash distribution for the three month period ended March 31, 2022 of $0.05 per unit. The cash distribution was paid on May 12, 2022 to all unitholders of common units and general partner units of record as of May 9, 2022.

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. 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. 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% ownership 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      98     —         2

First Target Distribution

   up to $6.0375      98     —         2

Second Target Distribution

   above $ 6.0375 up to $6.5625      85     13     2

Third Target Distribution

   above $6.5625 up to $7.875      75     23     2

Thereafter

   above $7.875      50     48     2

Related Party Transactions

Vessel operating expenses: In August 2019, Navios Partners extended the duration of its management agreement (“Management Agreement”) with the Manager until January 1, 2025, with an automatic renewal for an additional five years, unless earlier terminated by either party. Vessel operating expenses were fixed for two years commencing from January 1, 2020 at: (a) $4,350 daily rate per Ultra-Handymax Vessel; (b) $4,450 daily rate per Panamax Vessel; (c) $5,410 daily rate per Capesize Vessel; and (d) $6,900 daily rate per Containership of TEU 6,800. In December 2019, the Management Agreement was further amended to include from January 1, 2020, a $6,100 daily rate per Sub-Panamax/Panamax Containership.

Following the completion of the NMCI Merger, the fleet of Navios Containers is included in Navios Partners’ owned fleet and continued to be operated by the Manager (see Note 3 – Acquisition of Navios Containers and Navios Acquisition to the unaudited condensed consolidated financial statements included elsewhere in this Report). As per the terms of the Navios Containers’ management agreement with the Manager, (the “NMCI Management Agreement”), vessel operating expenses were 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; (b) $7,780 daily rate per Containership of TEU 8,000 up to 9,999; and (c) $8,270 daily rate per Containership of TEU 10,000 up to 11,999.

Upon acquisition of the majority of outstanding stock of Navios Acquisition, the fleet of Navios Acquisition is included in Navios Partners’ owned fleet and continued to be operated by Tankers Manager (see Note 3 – Acquisition of Navios Containers and Navios Acquisition to the unaudited condensed consolidated financial statements included elsewhere in this Report). As per the terms of Navios Acquisition’s management agreement with Tankers Manager (the “NNA Management Agreement” and together with the Management Agreement and the NMCI Management Agreement, the “Management Agreements”), vessel operating expenses were 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 Management Agreements also provide for a technical and commercial management fee of $50 per day per vessel, an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

Following completion of the Mergers, the Managers provided commercial and technical management services to Navios Partners’ vessels until December 31, 2021 for a daily fee of: (a) $4,350 per Ultra-Handymax Vessel; (b) $4,450 per Panamax Vessel; (c) $5,410 per Capesize Vessel; (d) $6,100 per Containership of TEU 1,300 up to 3,400; (e) $6,215 per Containership of TEU 3,450 up to 4,999; (f) $6,900 per Containership of TEU 6,800 ; (g) $7,780 per Containership of TEU 8,000 up to 9,999; (h) $8,270 per Containership of TEU 10,000 up to 11,999; (i) $6,825 per MR2 and MR1 product tanker and chemical tanker vessel; (j) $7,225 per LR1 product tanker vessel; and (k) $9,650 per VLCC. Commencing from January 1, 2022 vessel operating expenses are fixed for one year for a daily fee of: (a) $4,481 per Ultra-Handymax Vessel; (b) $4,584 per Panamax Vessel; (c) $5,573 per Capesize Vessel; (d) $6,283 per Containership of TEU 1,300 up to 3,400; (e) $6,401 per Containership of TEU 3,450 up to 4,999; (f) $7,107 per Containership of TEU 6,800; (g) $8,013 per Containership of TEU 8,000 up to 9,999; (h) $8,518 per Containership of TEU 10,000 up to 11,999; (i) $7,030 per MR2 and MR1 product tanker and chemical tanker vessel; (j) $7,442 per LR1 product tanker vessel; and (k) $9,940 per VLCC.

The Management Agreements also provide for payment of a termination fee, equal to the fees charged for the full calendar year (for Navios Partners, Navios Containers and Navios Acquisition) preceding the termination date in the event the agreements are terminated on or before December 31, 2024.

Drydocking expenses are reimbursed at cost for all vessels.

During the three month periods ended March 31, 2022 and 2021 certain extraordinary fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation under Company’s Management Agreement, amounted to $2.6 million and $3.5 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 month period ended March 31, 2022, certain extraordinary fees and costs related to COVID-19 measures, including crew related expenses, amounted to $3.0 million are presented under the caption of “Direct vessel expenses” in the condensed Consolidated Statements of Operations.

 

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Total vessel operating expenses for the three month periods ended March 31, 2022 and 2021 amounted to $73.2 million and $23.0 million, respectively

General and administrative expenses: Pursuant to the administrative services agreement (the “Administrative Services Agreement”), the Manager also provides 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. Under the Administrative Services Agreement, which provide for allocable general and administrative costs, the Manager is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. In August 2019, Navios Partners extended the duration of its existing Administrative Services Agreement with the Manager until January 1 2025, to be automatically renewed for another five years. The agreement also provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date in the event the Administrative Services Agreement is terminated on or before December 31, 2024.

Total general and administrative expenses charged by the Manager for the three month periods ended March 31, 2022 and 2021 amounted to $10.2 million and $3.7 million, respectively.

Balance due from/ (to) related parties: Balance due from related parties (both short and long term) as of March 31, 2022 and December 31, 2021 amounted to $53.8 million and $35.2 million, respectively, of which the current receivable was $17.5 million and $0 respectively, and the long-term receivable was $36.3 million, and $35.2 million, respectively. Balance due to related parties, short-term as of March 31, 2022 and December 31, 2021 amounted to $0 and $64.2 million, respectively, and mainly consisted of payables to the Managers. The balances mainly consisted of administrative fees, drydocking, extraordinary fees and costs related to regulatory requirements including ballast water treatment system, other expenses, as well as fixed vessel operating expenses, in accordance with the Management Agreements.

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.

In connection with the Navios Containers private placement and listing on the Norwegian over-the-counter (“N-OTC”) market effective June 8, 2017, Navios Partners entered into an omnibus agreement with Navios Containers, Navios Holdings, Navios Acquisition and Navios Midstream (the “Navios Containers Omnibus Agreement”), pursuant to which Navios Partners, Navios Holdings, Navios Acquisition and Navios Midstream have granted to Navios Containers a right of first refusal over any containerships to be sold or acquired in the future. The omnibus agreement contains significant exceptions that will allow Navios Partners, Navios Holdings, Navios Acquisition and Navios Midstream to compete with Navios Containers under specified circumstances.

General partner: Olympos Maritime Ltd., an entity affiliated to our Chairwoman and Chief Executive Officer, Angeliki Frangou, is the holder of Navios Partners’ general partner interest.

Acquisition of vessels:

2021

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 $0.1 million capitalized expenses), including working capital balances of $(5.8) million.

Navios Acquisition Credit Facility: On August 24, 2021, Navios Partners and Navios Acquisition entered into a 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 March 31, 2022 and December 31, 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. (“NSM”), an entity affiliated with Navios Acquisition’s Chairwoman and Chief Executive Officer, for a loan of up to $100.0 million to be used for general corporate purposes (the “NSM Loan Agreement”). The loan would 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.

 

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In August 2021, Navios Acquisition entered into a supplemental agreement (the “Supplemental Loan Agreement”) to amend the NSM Loan Agreement. The Supplemental Loan Agreement provided for: (i) the issuance of 8,823,529 newly-issued shares of common stock of Navios Acquisition in settlement of $30.0 million of the outstanding balance of the NSM Loan Agreement; and (ii) the repayment of $35.0 million of the outstanding balance of the NSM Loan Agreement 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 Agreement, of approximately $33.1 million.

On December 23, 2021, the outstanding amount of $33.1 million was repaid. As of March 31, 2022, there was no outstanding balance of the NSM Loan Agreement. Upon completion of the NNA Merger, the newly-issued shares of common stock of Navios Acquisition were converted into common units of Navios Partners on the same terms as is applicable to other outstanding shares of common stock of Navios Acquisition.

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 a rate based on a premium over U.S. $ LIBOR or SOFR. Therefore, we are exposed to the risk that our interest expense may increase if interest rates rise. For the three month periods ended March 31, 2022 and 2021, we paid interest on our outstanding debt at a weighted average interest rate of 3.70% and 3.95%, respectively. An 1% increase in LIBOR or SOFR would have increased our interest expense for each of the three month periods ended March 31, 2022 and 2021 by $3.0 million and $1.0 million, respectively.

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 three month period ended March 31, 2022, Cosco, represented approximately 10.6% of total revenues. For the three month period ended March 31, 2021, HMM, Singapore Marine and Cargill, represented approximately 21.5%, 19.4% and 12.2%, respectively, of total revenues. No other customers accounted for 10% or more of total revenues for any of the periods presented.

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 2021 Annual Report on Form 20-F.

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. 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-Summary of the significant accounting policies 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, 2021 filed with the SEC on April 12, 2022.

 

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Exhibit List

 

Exhibit
  No.  

  

Exhibit

99.1    Facility Agreement dated March  28, 2022, by and among Esmeralda Shipping Corporation, Proteus Shiptrade SA and Triangle Shipping Corporation as borrowers and ABN AMRO BANK N.V. as lender, agent and security trustee  (Previously filed as an exhibit to the Company’s Annual Report on Form 20-F for the year ended December 31, 2021 filed on April 12, 2022 and hereby incorporated by reference)
99.2    Facility Agreement dated May  9, 2022, by and among Cronus Shipping Corporation, Bole Shipping Corporation, Skopelos Shipping Corporation, Ios Shipping Corporation and Antipaxos Shipping Corporation, as borrowers, and Hellenic Bank Public Company Limited, as lender, arranger, agent, account bank and security trustee *

 

*

Filed herewith

 

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INDEX

 

     Page  
NAVIOS MARITIME PARTNERS L.P.   

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT MARCH  31, 2022 AND DECEMBER 31, 2021

     F-2  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

     F-3  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

     F-4  

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

     F-5  

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

     F-6  

 

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

     Notes      March 31,
2022
(unaudited)
     December 31,
2021
 

ASSETS

        

Current assets

        

Cash and cash equivalents

     4      $ 96,483      $ 159,467  

Restricted cash

     4        11,713        9,979  

Accounts receivable, net

        39,205        23,774  

Amounts due from related parties

     13        17,484        —    

Prepaid expenses and other current assets

        43,665        33,120  
     

 

 

    

 

 

 

Total current assets

        208,550        226,340  
     

 

 

    

 

 

 

Vessels, net

     5        2,819,311        2,852,570  

Deposits for vessels acquisitions

     12        64,623        46,335  

Other long-term assets

     7,12        48,807        48,168  

Deferred dry dock and special survey costs, net

        73,120        69,882  

Amounts due from related parties

     13        36,302        35,245  

Intangible assets

     6        93,557        100,422  

Operating lease assets

     15        240,132        244,337  
     

 

 

    

 

 

 

Total non-current assets

        3,375,852        3,396,959  
     

 

 

    

 

 

 

Total assets

      $ 3,584,402      $ 3,623,299  
     

 

 

    

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

        

Current liabilities

        

Accounts payable

      $ 25,111      $ 21,062  

Accrued expenses

        17,835        12,889  

Deferred revenue

        19,117        23,921  

Operating lease liabilities, current portion

     15        18,510        18,292  

Amounts due to related parties

     13        —          64,204  

Current portion of financial liabilities, net

     7        80,273        82,291  

Current portion of long-term debt, net

     7        164,904        172,846  
     

 

 

    

 

 

 

Total current liabilities

        325,750        395,505  
     

 

 

    

 

 

 

Operating lease liabilities, net

     15        220,878        225,512  

Unfavorable lease terms

     6        100,642        122,481  

Long-term financial liabilities, net

     7        449,146        465,633  

Long-term debt, net

     7        625,517        640,939  

Deferred revenue

        8,578        3,504  
     

 

 

    

 

 

 

Total non-current liabilities

        1,404,761        1,458,069  
     

 

 

    

 

 

 

Total liabilities

      $ 1,730,511      $ 1,853,574  
     

 

 

    

 

 

 

Commitments and contingencies

     12        —          —    

Partners’ capital:

        

Common Unitholders (30,197,087 units issued and outstanding at March 31, 2022 and December 31, 2021, respectively)

     9        1,826,201        1,743,717  

General Partner (622,555 units issued and outstanding at March 31, 2022 and December 31, 2021, respectively)

     9        27,690        26,008  
     

 

 

    

 

 

 

Total partners’ capital

        1,853,891        1,769,725  
     

 

 

    

 

 

 

Total liabilities and partners’ capital

      $ 3,584,402      $ 3,623,299  
     

 

 

    

 

 

 

See unaudited notes to the condensed consolidated financial statements

 

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

     Notes      Three Month
Period Ended
March 31,
2022
(unaudited)
    Three Month
Period Ended
March 31,
2021
(unaudited)
 

Time charter and voyage revenues

     2,10      $ 236,617     $ 65,063  

Time charter and voyage expenses

     15        (17,143     (2,495

Direct vessel expenses

     13        (11,193     (3,154

Vessel operating expenses (entirely through related parties transactions)

     13        (73,172     (22,962

General and administrative expenses

     13        (13,916     (4,907

Depreciation and amortization of intangible assets

     5,6        (42,866     (13,087

Amortization of unfavorable lease terms

     6        21,839       —    

Loss on sale of vessels

     5        —         (511

Interest expense and finance cost, net

        (13,227     (5,844

Interest income

        2       115  

Other expense, net

        (1,276     (431

Equity in net earnings of affiliated companies

     3        —         80,839  

Bargain gain

     3        —         44,053  
     

 

 

   

 

 

 

Net income

      $ 85,665     $ 136,679  
     

 

 

   

 

 

 

Earnings per unit (see note 14):

 

     Three Month
Period Ended
March 31,
2022
(unaudited)
     Three Month
Period Ended
March 31,
2021
(unaudited)
 

Earnings per unit:

     

Earnings per common unit, basic:

   $ 2.78      $ 11.78  

Earnings per common unit, diluted

   $ 2.78      $ 11.69  

See unaudited notes to the condensed consolidated financial statements

 

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

     Notes      Three Month
Period Ended
March 31, 2022
(unaudited)
    Three Month
Period Ended
March 31, 2021
(unaudited)
 

OPERATING ACTIVITIES:

       

Net income

      $ 85,665     $ 136,679  

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation and amortization of intangible assets

     5,6        42,866       13,087  

Amortization of unfavorable lease terms

     6        (21,839     —    

Non-cash amortization of deferred revenue and straight line

        5,074       (393

Amortization of operating lease assets/ liabilities

     15        (211     255  

Amortization and write-off of deferred finance costs and discount

        1,324       1,290  

Amortization of deferred dry dock and special survey costs

        6,201       3,056  

Loss on sale of vessel

     5        —         511  

Bargain gain

     3        —         (44,053

Equity in net earnings of affiliated companies

     3        —         (80,839

Stock-based compensation

     9        42       118  

Changes in operating assets and liabilities:

       

Increase in accounts receivable

        (15,431     (510

Increase in prepaid expenses and other current assets

        (10,545     (4,660

Increase in amounts due from related parties

     13        (18,541     —    

Payments for dry dock and special survey costs

        (9,439     (11,805

Increase in accounts payable

        4,049       1,381  

Increase/ (decrease) in accrued expenses

        4,946       (372

(Decrease)/ increase in deferred revenue

        (4,804     2,681  

(Decrease)/ increase in amounts due to related parties

     13        (64,204     28  

Operating lease liabilities short and long-term

     15        —         (277
     

 

 

   

 

 

 

Net cash provided by operating activities

        5,153       16,177  

INVESTING ACTIVITIES:

       

Net cash proceeds from sale of vessels

     5        —         32,692  

Deposits for acquisition/ option to acquire vessel

     12        (19,023     (315

Cash acquired from merger with Navios Containers

     3        —         10,282  

Acquisition of/ additions to vessels, net of cash acquired

     5        (2,646     (37,021
     

 

 

   

 

 

 

Net cash (used in)/ provided by investing activities

        (21,669     5,638  

FINANCING ACTIVITIES:

       

Cash distributions paid

     14        (1,541     (579

Net proceeds from issuance of general partner units

     9        —         4,114  

Net proceeds from issuance of common units

     9        —         9,705  

Repayment of long-term debt and financial liabilities

     7        (97,167     (72,003

Payments of deferred finance costs

     7        (1,026     (400

Proceeds from long term borrowing

     7        55,000       58,000  
     

 

 

   

 

 

 

Net cash used in financing activities

        (44,734     (1,163
     

 

 

   

 

 

 

(Decrease)/ Increase in cash, cash equivalents and restricted cash

        (61,250     20,652  

Cash, cash equivalents and restricted cash, beginning of period

        169,446       30,728  
     

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, end of period

      $ 108,196     $ 51,380  
     

 

 

   

 

 

 

 

     Three Month
Period Ended
March 31, 2022
(unaudited)
     Three Month
Period Ended
March 31, 2021
(unaudited)
 

Supplemental disclosures of cash flow information

     

Cash interest paid

   $ 11,252      $ 4,675  

Non cash financing activities

     

Stock-based compensation

   $ 42      $ 118  

Non cash investing activities

     

Acquisition of vessels

   $ —        $ (5,766

See unaudited notes to the condensed consolidated financial statements

 

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

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

 

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

Balance, December 31, 2021

     622,555      $ 26,008       30,197,087      $ 1,743,717     $ 1,769,725  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Cash distribution paid ($0.05 per unit—see Note 14)

     —          (31     —          (1,510     (1,541

Stock based compensation (see Note 9)

     —          —         —          42       42  

Net income

     —          1,713       —          83,952       85,665  

Balance, March 31, 2022

     622,555      $ 27,690       30,197,087      $ 1,826,201     $ 1,853,891  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
     Limited Partners        
   General Partner     Common Unitholders        
   Units      Amount     Units      Amount     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 14)

     —          (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 3)

     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  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

See unaudited notes to the condensed consolidated financial statements

 

F-5


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. Dollars except unit and per 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”) (see Note 13 — Transactions with related parties and affiliates).

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 short, medium and longer-term charters. The operations of Navios Partners are managed by Navios Shipmanagement Inc., (the “Manager”) and Navios Tankers Management Inc. (“Tankers Manager” and together with the Manager, the “Managers”) which are entities affiliated with the Company’s Chairwoman and Chief Executive Officer (see Note 13 — Transactions with related parties and affiliates).

As of March 31, 2022, there were 30,197,087 outstanding common units and 622,555 general partnership units. As of March 31, 2022, Navios Maritime Holdings Inc. (“Navios Holdings”) owned an approximately 10.3% ownership interest in Navios Partners and the General Partner owned an approximately 2.0% ownership interest in Navios Partners based on all outstanding common units and general partner units.

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, 2021 filed on Form 20-F on April 12, 2022 with the U.S. Securities and Exchange Commission (“SEC”).

Based on internal forecasts and projections that take into account reasonably possible changes in 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, cash from sale of vessels (see Note 5 – Vessels, net) 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.

Following Russia’s invasion of Ukraine in February 2022 the United States, the European Union, the United Kingdom and other countries have announced sanctions against Russia, and may impose wider sanctions and take other actions in the future. To date, no apparent consequences have been identified on the Company’s business. It should be noted that since the Company employs Ukrainian and Russian seafarers, it may face problems in relation to their employment, repatriation, salary payments and be subject to claims in this regard. Notwithstanding the foregoing, it is possible that these tensions might eventually have an adverse impact on our business, financial condition, results of operations and cash flows.

(b) Principles of consolidation: The accompanying interim condensed consolidated financial statements include Navios Partners’ wholly owned subsidiaries incorporated under the laws of the Republic of Marshall Islands, Malta, Cayman Islands and Liberia from their dates of incorporation or from the date of acquiring control or, 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.

 

F-6


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

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.

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

 

Company name

  

Vessel name

  

Country of
incorporation

   2022    2021

Libra Shipping Enterprises Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Alegria Shipping Corporation

   Navios Alegria    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Felicity Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Gemini Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Galaxy Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Aurora Shipping Enterprises Ltd.

   Navios Hope    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Palermo Shipping S.A

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fantastiks Shipping Corporation(12)

   Navios Fantastiks    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Sagittarius Shipping Corporation(12)

   Navios Sagittarius    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Hyperion Enterprises Inc.

   Navios Hyperion    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Chilali Corp.

   Navios Aurora II    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Surf Maritime Co.

   Navios Pollux    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Pandora Marine Inc.

   Navios Melodia    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Customized Development S.A.

   Navios Fulvia    Liberia    1/01 – 3/31    1/01 – 3/31

Kohylia Shipmanagement S.A.

   Navios Luz    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Orbiter Shipping Corp.

   Navios Orbiter    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Floral Marine Ltd.

   Navios Buena Ventura    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Golem Navigation Limited(13)

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Kymata Shipping Co.

   Navios Helios    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Joy Shipping Corporation

   Navios Joy    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Micaela Shipping Corporation

   Navios Harmony    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Pearl Shipping Corporation

   Navios Sun    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Velvet Shipping Corporation

   Navios La Paix    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Perigiali Navigation Limited(12)

   Navios Beaufiks    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Finian Navigation Co.(12)

   Navios Ace    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Ammos Shipping Corp.

   Navios Prosperity I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Wave Shipping Corp.

   Navios Libertas    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Casual Shipholding Co.(12)

   Navios Sol    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Avery Shipping Company

   Navios Symphony    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Coasters Ventures Ltd.

   Navios Christine B    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Ianthe Maritime S.A.

   Navios Aster    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Rubina Shipping Corporation

   Hyundai Hongkong    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Topaz Shipping Corporation

   Hyundai Singapore    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Beryl Shipping Corporation

   Hyundai Tokyo    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Cheryl Shipping Corporation

   Hyundai Shanghai    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Christal Shipping Corporation

   Hyundai Busan    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fairy Shipping Corporation (5)

   Navios Utmost    Marshall Is.    1/01 – 3/31    03/31 – 03/31

Limestone Shipping Corporation (5)

   Navios Unite    Marshall Is.    1/01 – 3/31    03/31 – 03/31

Dune Shipping Corp.

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Citrine Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Cavalli Navigation Inc.

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Seymour Trading Limited(2)

   Navios Altair I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Goldie Services Company

   Navios Symmetry    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Andromeda Shiptrade Limited

   Navios Apollon I    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Esmeralda Shipping Corporation

   Navios Sphera    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Triangle Shipping Corporation

   Navios Mars    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Oceanus Shipping Corporation(19)

   Castor N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Cronus Shipping Corporation

   Protostar N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Leto Shipping Corporation(17)

   Esperanza N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Dionysus Shipping Corporation(4)

   Harmony N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Prometheus Shipping Corporation(18)

   Solar N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

 

F-7


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

Camelia Shipping Inc.

   Navios Camelia    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Anthos Shipping Inc.

   Navios Anthos    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Azalea Shipping Inc.(1)

   Navios Azalea    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Amaryllis Shipping Inc.

   Navios Amaryllis    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Zaffre Shipping Corporation(14)

   Serenitas N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Wenge Shipping Corporation(14),(20)

   Joie N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Sunstone Shipping Corporation(14)

   Copernicus N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Fandango Shipping Corporation(14)

   Unity N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Flavescent Shipping Corporation(14)

   Odysseus N    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Emery Shipping Corporation(15)

   Navios Gem    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Rondine Management Corp.(15)

   Navios Victory    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Prosperity Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

Aldebaran Shipping Corporation

      Marshall Is.    1/01 – 3/31    1/01 – 3/31

JTC Shipping and Trading Ltd.(11)

   Holding Company    Malta    1/01 – 3/31    1/01 – 3/31

Navios Maritime Partners L.P.

   N/A    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Navios Maritime Operating LLC.

   N/A    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Navios Partners Finance (US) Inc.

   Co-Borrower    Delaware    1/01 – 3/31    1/01 – 3/31

Navios Partners Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    1/01 – 3/31

Solange Shipping Ltd.(16)

   Navios Avior    Marshall Is.    1/01 – 3/31    03/30 – 3/31

Mandora Shipping Ltd.(16)

   Navios Centaurus    Marshall Is.    1/01 – 3/31    03/30 – 3/31

Olympia II Navigation Limited

   Navios Domino    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Pingel Navigation Limited

   Navios Delight    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Ebba Navigation Limited

   Navios Destiny    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Clan Navigation Limited

   Navios Devotion    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Sui An Navigation Limited(23)

   Navios Dedication    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Bertyl Ventures Co.

   Navios Azure    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Silvanus Marine Company

   Navios Summer    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Anthimar Marine Inc.

   Navios Amarillo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Enplo Shipping Limited

   Navios Verde    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Morven Chartering Inc.

   Matson Oahu    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Rodman Maritime Corp.

   Navios Spring    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Isolde Shipping Inc.

   Navios Indigo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Velour Management Corp.

   Navios Vermilion    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Evian Shiptrade Ltd.

   Matson Lanai    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Theros Ventures Limited

   Navios Lapis    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Legato Shipholding Inc.

   Navios Tempo    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Inastros Maritime Corp.

   Navios Chrysalis    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Zoner Shiptrade S.A.

   Navios Dorado    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Jasmer Shipholding Ltd.

   Navios Nerine    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Thetida Marine Co.

   Navios Magnolia    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Jaspero Shiptrade S.A.

   Navios Jasmine    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Peran Maritime Inc.

   Navios Felicitas    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Nefeli Navigation S.A.

   Navios Unison    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Crayon Shipping Ltd

   Navios Miami    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Chernava Marine Corp.

   Bahamas    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Proteus Shiptrade S.A

   Zim Carmel
(ex Bermuda)
   Marshall Is.    1/01 – 3/31    03/31 – 3/31

Vythos Marine Corp.

   Navios Constellation    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Maritime Containers Sub L.P.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Partners Containers Finance Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Boheme Navigation Company

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Navios Partners Containers Inc.

   Sub-Holding Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Iliada Shipping S.A.

   Operating Company    Marshall Is.    1/01 – 3/31    03/31 – 3/31

Vinetree Marine Company

   Operating Company    Marshall Is.    01/01 – 3/31    03/31 – 3/31

Afros Maritime Inc.

   Operating Company    Marshall Is.    01/01 – 3/31    03/31 – 3/31

Cavos Navigation Co.(9)

   Navios Libra    Marshall Is.    01/01 – 3/31    01/01 – 3/31

Perivoia Shipmanagement Co.(10)

   Navios Amitie    Marshall Is.    01/01 – 3/31    01/01 – 3/31

Pleione Management Limited(10)

   Navios Star    Marshall Is.    01/01 – 3/31    01/01 – 3/31

 

F-8


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

Bato Marine Corp.(21)

   TBN I    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Agron Navigation Company(21)

   TBN II    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Teuta Maritime S.A.(22)

   TBN VII    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Ambracia Navigation Company(21)

   TBN IV    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Artala Shipping Co.(22)

   TBN V    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Migen Shipmanagement Ltd.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31    03/05 – 3/31

Bole Shipping Corporation(24)

   Spectrum N    Marshall Is.    01/01 – 3/31   

Brandeis Shipping Corporation(24)

   Ete N    Marshall Is.    01/01 – 3/31   

Buff Shipping Corporation(24)

   Fleur N    Marshall Is.    01/01 – 3/31   

Morganite Shipping Corporation(25)

   TBN VI    Marshall Is.    01/01 – 3/31   

Balder Martitime Ltd.(26)

   Navios Koyo    Marshall Is.    01/01 – 3/31   

Melpomene Shipping Corporation(27)

   TBN VIII    Marshall Is.    01/01 – 3/31   

Urania Shipping Corporation(27)

   TBN IX    Marshall Is.    01/01 – 3/31   

Terpsichore Shipping Corporation(8)

   TBN X    Marshall Is.    01/01 – 3/31   

Erato Shipping Corporation(8)

   TBN XI    Marshall Is.    01/01 – 3/31   

Lavender Shipping Corporation(12) (7)

   Navios Ray    Marshall Is.    01/01 – 3/31   

Nostos Shipmanagement Corp.(12) (7)

   Navios Bonavis    Marshall Is.    01/01 – 3/31   

Navios Maritime Acquisition Corporation

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Navios Acquisition Europe Finance Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Navios Acquisition Finance (US) Inc.

   Co-Issuer of Ship
Mortgage Notes
   Delaware    01/01 – 3/31   

Navios Maritime Midstream Partners GP LLC

   Holding Company    Marshall Is.    01/01 – 3/31   

Letil Navigation Ltd.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Navios Maritime Midstream Partners Finance (US) Inc.

   Sub-Holding Company    Delaware    01/01 – 3/31   

Aegean Sea Maritime Holdings Inc.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Amorgos Shipping Corporation

   Nave Cosmos    Marshall Is.    01/01 – 3/31   

Andros Shipping Corporation

   Nave Polaris    Marshall Is.    01/01 – 3/31   

Antikithira Shipping Corporation

   Nave Equator    Marshall Is.    01/01 – 3/31   

Antiparos Shipping Corporation

   Nave Atria    Marshall Is.    01/01 – 3/31   

Antipaxos Shipping Corporation

   Nave Dorado    Marshall Is.    01/01 – 3/31   

Antipsara Shipping Corporation

   Nave Velocity    Marshall Is.    01/01 – 3/31   

Crete Shipping Corporation

   Nave Cetus    Marshall Is.    01/01 – 3/31   

Delos Shipping Corporation

   Nave Photon    Marshall Is.    01/01 – 3/31   

Folegandros Shipping Corporation

   Nave Andromeda    Marshall Is.    01/01 – 3/31   

Ikaria Shipping Corporation

   Nave Aquila    Marshall Is.    01/01 – 3/31   

Ios Shipping Corporation

   Nave Cielo    Cayman Islands    01/01 – 3/31   

Iraklia Shipping Corporation

   Bougainville    Marshall Is.    01/01 – 3/31   

Kimolos Shipping Corporation

   Former Vessel-
Owning Company
   Marshall Is.    01/01 – 3/31   

Kithira Shipping Corporation

   Nave Orbit    Marshall Is.    01/01 – 3/31   

Kos Shipping Corporation

   Nave Bellatrix    Marshall Is.    01/01 – 3/31   

Lefkada Shipping Corporation

   Nave Buena Suerte    Marshall Is.    01/01 – 3/31   

Leros Shipping Corporation

   Former Vessel-
Owning Company
   Marshall Is.    01/01 – 3/31   

Mytilene Shipping Corporation

   Nave Orion    Marshall Is.    01/01 – 3/31   

Oinousses Shipping Corporation

   Nave Jupiter    Marshall Is.    01/01 – 3/31   

Psara Shipping Corporation

   Nave Luminosity    Marshall Is.    01/01 – 3/31   

Rhodes Shipping Corporation

   Nave Cassiopeia    Marshall Is.    01/01 – 3/31   

Samos Shipping Corporation

   Nave Synergy    Marshall Is.    01/01 – 3/31   

Samothrace Shipping Corporation

   Nave Pulsar    Marshall Is.    01/01 – 3/31   

Serifos Shipping Corporation

   Nave Estella    Marshall Is.    01/01 – 3/31   

Sifnos Shipping Corporation

   Nave Titan    Marshall Is.    01/01 – 3/31   

Skiathos Shipping Corporation

   Nave Capella    Marshall Is.    01/01 – 3/31   

Skopelos Shipping Corporation

   Nave Ariadne    Cayman Islands    01/01 – 3/31   

Skyros Shipping Corporation

   Nave Sextans    Marshall Is.    01/01 – 3/31   

Syros Shipping Corporation

   Nave Alderamin    Marshall Is.    01/01 – 3/31   

Thera Shipping Corporation

   Nave Atropos    Marshall Is.    01/01 – 3/31   

 

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 unit and per unit data)

 

Tilos Shipping Corporation

   Nave Spherical    Marshall Is.    01/01 – 3/31   

Tinos Shipping Corporation

   Nave Rigel    Marshall Is.    01/01 – 3/31   

Zakynthos Shipping Corporation

   Nave Quasar    Marshall Is.    01/01 – 3/31   

Cyrus Investments Corp.

   Baghdad    Marshall Is.    01/01 – 3/31   

Olivia Enterprises Corp.

   Erbil    Marshall Is.    01/01 – 3/31   

Limnos Shipping Corporation

   Nave Pyxis    Marshall Is.    01/01 – 3/31   

Thasos Shipping Corporation

   Nave Equinox    Marshall Is.    01/01 – 3/31   

Agistri Shipping Limited

   Operating Subsidiary    Malta    01/01 – 3/31   

Paxos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Donoussa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Schinousa Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Alonnisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Makronisos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Shinyo Loyalty Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31   

Shinyo Navigator Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31   

Amindra Navigation Co.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Navios Maritime Midstream Partners L.P.

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Navios Maritime Midstream Operating LLC

   Sub-Holding Company    Marshall Is.    01/01 – 3/31   

Shinyo Dream Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31   

Shinyo Kannika Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31   

Shinyo Kieran Limited

   Nave Universe    British Virgin Islands    01/01 – 3/31   

Shinyo Ocean Limited

   Former Vessel-Owning Company    Hong Kong    01/01 – 3/31   

Shinyo Saowalak Limited

   Nave Constellation    British Virgin Islands    01/01 – 3/31   

Sikinos Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Kerkyra Shipping Corporation

   Nave Galactic    Marshall Is.    01/01 – 3/31   

Doxa International Corp.

   Nave Electron    Marshall Is.    01/01 – 3/31   

Alkmene Shipping Corporation

   Star N    Marshall Is.    01/01 – 3/31   

Aphrodite Shipping Corporation

   Aurora N    Marshall Is.    01/01 – 3/31   

Dione Shipping Corporation

   Lumen N    Marshall Is.    01/01 – 3/31   

Persephone Shipping Corporation

   Hector N    Marshall Is.    01/01 – 3/31   

Rhea Shipping Corporation

   Perseus N    Marshall Is.    01/01 – 3/31   

Tzia Shipping Corporation (21)

   TBN XIV    Marshall Is.    01/01 – 3/31   

Boysenberry Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Cadmium Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Celadon Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Cerulean Shipping Corporation

   Former Vessel-Owning Company    Marshall Is.    01/01 – 3/31   

Kleio Shipping Corporation (6)

   TBN XII    Marshall Is.    01/01 – 3/31   

Polymnia Shipping Corporation (6)

   TBN XIII    Marshall Is.    01/01 – 3/31   

Goddess Shiptrade Inc. (21)

   TBN III    Marshall Is.    01/01 – 3/31   

Navios Acquisition Merger Sub.Inc.

   Merger SPV    Marshall Is.    01/01 – 3/31   

Aramis Navigation Inc.(3)

   Navios Azimuth    Marshall Is.    01/01 – 3/31   

Thalia Shipping Corporation (6)

   TBN XVII    Marshall Is.    01/01 – 3/31   

Muses Shipping Corporation (6)

   TBN XVIII    Marshall Is.    01/01 – 3/31   

Euterpe Shipping Corporation (8)

   TBN XVI    Marshall Is.    01/01 – 3/31   

Calliope Shipping Corporation (8)

   TBN XV    Marshall Is.    01/01 – 3/31   

 

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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 unit and per unit data)

 

(1)

The vessel was sold on August 13, 2021.

 

(2)

The vessel was sold on October 29, 2021.

 

(3)

The vessel was acquired on July 9, 2021.

 

(4)

The vessel was sold on August 16, 2021.

 

(5)

The vessel agreed to be sold in February 2022.

 

(6)

Expected to be delivered by the second half of 2024.

 

(7)

The vessel was acquired on June 30, 2021.

 

(8)

Expected to be delivered by the first half of 2024.

 

(9)

The vessel was delivered on July 24, 2019 (see Note 15 – Leases).

 

(10)

The vessels were delivered on May 28, 2021 and June 10, 2021 (see Note 15 – Leases).

 

(11)

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

 

(12)

Vessels under the sale and leaseback transaction.

 

(13)

The vessel was sold on December 10, 2020.

 

(14)

The vessels were acquired on June 29, 2020, following the liquidation of Navios Europe II.

 

(15)

The vessels were acquired on September 30, 2020.

 

(16)

The vessels were acquired on March 30, 2021 (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 first half of 2023.

 

(23)

The vessel was sold on July 31, 2021.

 

(24)

The vessels were acquired on May 10, 2021.

 

(25)

Expected to be delivered in the first half of 2023.

 

(26)

The vessel was acquired on June 4, 2021.

 

(27)

Expected to be delivered by the second half of 2023.

Revenue and Expense Recognition:

Revenue from time chartering

Revenues from time chartering and bareboat chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average lease revenue over the rental periods of such charter agreements, as service is performed. A time charter involves placing a vessel at the charterers’ disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Short period charters for less than three months are referred to as spot-charters. Charters extending three months to a year are generally referred to as medium-term charters. All other charters are considered long-term. The Company has determined to recognize lease revenue as a combined single lease component for all time charters (operating leases) as the related lease component and non-lease components will have the same timing and pattern of the revenue recognition of the combined single lease component. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. Under time charters, operating costs such as for crews, maintenance and insurance are typically paid by the owner of the vessel. Revenue from time chartering and bareboat chartering of vessels amounted to $221,318 and $62,499 for the three month periods ended March 31, 2022 and 2021, respectively.

Revenue from voyage contracts

Under a voyage charter, a vessel is provided for the transportation of specific goods between specific ports in return for payment of an agreed upon freight per ton of cargo. Upon adoption of ASC 606, the Company recognizes revenue ratably from port of loading to when the charterer’s cargo is discharged as well as defer costs that meet the definition of “costs to fulfill a contract” and relate directly to the contract. Revenue from voyage contracts amounted to $6,571 and $1,220 for the three month periods ended March 31, 2022 and 2021, respectively.

 

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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 unit and per unit data)

 

Pooling arrangements

For vessels operating in pooling arrangements, the Company earns a portion of total revenues generated by the pool, net of expenses incurred by the pool. The amount allocated to each pool participant vessel, including the Company’s vessels, is determined in accordance with an agreed-upon formula, which is determined by points awarded to each vessel in the pool based on the vessel’s age, design and other performance characteristics. Revenue under pooling arrangements is accounted for as variable rate operating leases on the accrual basis and is recognized when an agreement with the pool exists, price is fixed, service is provided and the collectability is reasonably assured. The allocation of such net revenue may be subject to future adjustments by the pool however, such changes are not expected to be material. The Company recognizes net pool revenue on a monthly and quarterly basis, when the vessel has participated in a pool during the period and the amount of pool revenue can be estimated reliably based on the pool report. Revenue from vessels operating in pooling arrangements amounted to $8,666 and $1,344 for the three month periods ended March 31, 2022 and 2021, respectively.

Revenue from profit-sharing

Profit-sharing revenues are calculated at an agreed percentage of the excess of the charterer’s average daily income (calculated on a quarterly or semi-annual basis) over an agreed amount and accounted for on an accrual basis based on provisional amounts and for those contracts that provisional accruals cannot be made due to the nature of the profit sharing elements, these are accounted for on the actual cash settlement or when such revenue becomes determinable. Profit-sharing revenue amounted to $62 and $0 for the three month periods ended March 31, 2022 and 2021, respectively.

Revenues are recorded net of address commissions. Address commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter or freight rate. Since address commissions represent a discount (sales incentive) on services rendered by the Company and no identifiable benefit is received in exchange for the consideration provided to the charterer, these commissions are presented as a reduction of revenue.

Recent Accounting Pronouncements:

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in Navios Partners’ Annual Report on Form 20-F for the year ended December 31, 2021. On January 1, 2022, the Company adopted the provisions of ASU 2021-05, Lease (Topic 842): Lessors—Certain Leases with Variable Lease Payments (“ASU 2021-05”) and this adoption did not have a material effect on Company’s interim condensed consolidated financial position, results of operations, and cash flows.

NOTE 3 – ACQUISITION OF NAVIOS CONTAINERS AND NAVIOS ACQUISITION

ACQUISITION OF NAVIOS CONTAINERS

On March 31, 2021, Navios Partners completed the merger (the “NMCI Merger”) contemplated by the Agreement and Plan of Merger (the “NMCI Merger Agreement”), dated as of December 31, 2020, by and amongst Navios Partners, its direct wholly-owned subsidiary NMM Merger Sub LLC (“Merger Sub”), Navios Maritime Containers L.P. (“Navios Containers LP”) and Navios Maritime Containers GP LLC, Navios Containers LP’s general partner. Pursuant to the NMCI Merger Agreement, Merger Sub merged with and into Navios Containers LP, with Navios Containers LP continuing as the surviving partnership. As a result of the NMCI Merger, Navios Containers LP became a wholly-owned subsidiary of Navios Partners. Pursuant to the terms of the NMCI Merger Agreement, each outstanding common unit of Navios Containers LP that was held by a unitholder other than Navios Partners, Navios Containers LP and their respective subsidiaries was converted into the right to receive 0.39 of a common unit of Navios Partners. Following the exercise of the optional second merger (“Second Merger”), Navios Containers LP merged with and into Navios Maritime Containers Sub LP (“Navios Containers” which shall include all its predecessors),, with Navios Containers continuing as the surviving partnership, and Migen Shipmanagement Ltd, a wholly owned subsidiary of Navios Partners, became Navios Containers’ general partner.

Navios Partners accounted for the NMCI Merger “as a business combination achieved in stages”, which results in the application of the “acquisition method,” as defined under ASC 805, Business Combinations. Navios Partners’ previously held equity interest in Navios Containers was remeasured to its fair value at March 31, 2021, the date the controlling interest was acquired and the resulting gain was recognized in earnings. Under the acquisition method, the fair value of the consideration paid by Navios Partners in connection with the transaction was allocated to Navios Containers’ net assets based on their estimated fair values at the date of the completion of the NMCI Merger. The excess of the fair value of the identifiable net assets acquired of $342,674 over the total purchase price consideration of $298,621, resulted in a bargain gain of $44,053. The transaction resulted in a bargain gain as a result of the share price of Navios Containers trading at a discount to their net asset value (“NAV”). The fair value of the vessels was determined based on vessel valuations, obtained from independent third party shipbrokers, which are among other things, based on recent sales and purchase transactions of similar vessels. The fair value of the unfavorable lease terms (intangible liabilities) was determined by reference to market data and the discounted amount of expected future cash flows. The key assumptions that were used in the discounted cash flow analysis were as follows: (i) the contracted charter rate of the acquired charter over the remaining lease term compared to the current market charter rates for a similar contract and (ii) discounted using the Company’s relevant discount factor of 8.89%.

 

F-12


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

As of March 31, 2021, Navios Partners’ previously held interest of 35.7% in Navios Containers was remeasured to a fair value of $106,997, determined using the closing price per common unit of $9.23 of NMCI as of the closing date of the NMCI merger, resulting in revaluation gain of $75,387 which along with the equity gain of $5,452 from the operations of Navios Containers upon the closing date aggregate to a gain on acquisition of control in the amount of $80,839 and is presented in, “Equity in net earnings of affiliated companies”, in the accompanying condensed Consolidated Statement of Operations. The acquisition of the remaining interest of 64.3% through the issuance of newly issued common units in Navios Partners was recorded at a fair value of $191,624 on the basis of 8,133,452 common units issued at a closing price per common unit of $23.56 as of the closing date of the NMCI Merger.

Beginning April 1, 2021, the results of operations of Navios Containers are included in Navios Partners’ condensed Consolidated Statements of Operations. Therefore, Navios Containers’ balances are included in Navios Partners’ condensed Consolidated Balance Sheets as of March 31, 2022 and Navios Partners’ Consolidated Balance Sheets as of December 31, 2021, while Navios Container’s results of operations are only included in Navios Partners’ condensed Consolidated Statements of Operations for the three month period ended March 31, 2022.

For the three month periods ended March 31, 2022 and March 31, 2021, transaction costs amounted to $0 and $101, respectively, have been expensed in the condensed consolidated statement of operations within the caption “General and administrative expenses”.

The following table summarizes the consideration exchanged and the fair value of assets acquired and liabilities assumed on March 31, 2021:

 

Purchase price:

  

Fair value of previously held interest (35.7%)

   $ 106,997  

Equity issuance (8,133,452 Navios Partners units * $23.56)

     191,624  
  

 

 

 

Total purchase price

     298,621  

Fair value of assets acquired and liabilities assumed:

  

Vessels

     770,981  

Current assets (including cash of $10,282)

     29,033  

Unfavorable lease terms

     (224,490

Long term debt and financial liabilities assumed (including current portion)

     (227,434

Current liabilities

     (5,416
  

 

 

 

Fair value of net assets acquired

     342,674  
  

 

 

 

Bargain gain

   $ 44,053  
  

 

 

 

The acquired intangible, listed below, as determined at the acquisition date and are amortized under the straight line method over the period indicated below:

 

     Within
One
Year
    Year Two     Year Three     Year Four     Year Five     Year Six     Total  

Time charters with unfavorable lease terms

   $ (126,710     (52,501     (20,431     (12,462     (11,445     (941   $ (224,490

Intangible liabilities subject to amortization are amortized using straight line method over their estimated useful lives to their estimated residual value of zero.

The following is a summary of the acquired identifiable intangible liability:

 

     Amount  

Description

  

Unfavorable lease terms

   $ (224,490

 

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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 unit and per unit data)

 

ACQUISITION OF NAVIOS ACQUISITION

On August 25, 2021 (date of obtaining control), Navios Partners purchased 44,117,647 newly issued shares of Navios Maritime Acquisition Corporation (“Navios Acquisition”), thereby acquiring a controlling interest of 62.4% in Navios Acquisition, and the results of operations of Navios Acquisition are included in Navios Partners’ Consolidated Statements of Operations commencing on August 26, 2021.

On October 15, 2021, Navios Partners completed the merger with Navios Acquisition (the “NNA Merger” and together with the NMCI Merger, the “Mergers”) 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.

Navios Partners accounted for the control obtained “as a business combination”, which resulted in the application of the “acquisition method,” as defined under ASC 805, Business Combinations, as well as the recognition of the equity interest in Navios Acquisition not held by Navios Partners to its fair value at the date the controlling interest is acquired by Navios Partners as noncontrolling interest on the Consolidated Balance Sheet. The excess of the fair value of Navios Acquisition’s identifiable net assets acquired of $211,597 over the fair value of the consideration transferred of $150,000 and the fair value of the noncontrolling interest of $57,635, resulted in a bargain gain upon obtaining control of $3,962.

The fair value of the consideration of $150,000 has been treated as deemed contribution with an equal increase in total partner’s capital. The fair value of the noncontrolling interest was determined by using the Navios Acquisition’s closing price of $2.17 as of August 25, 2021 (date of obtaining control). The fair value of the vessels was determined based on vessel valuations, obtained from independent third party shipbrokers, which are among other things, based on recent sales and purchase transactions of similar vessels. The fair value of the favorable and unfavorable lease terms (intangible assets and liabilities) were determined by reference to market data and the discounted amount of expected future cash flows. The key assumptions that were used in the discounted cash flow analysis were as follows: (i) the contracted charter rate of the acquired charter over the remaining lease term compared to the current market charter rates for a similar contract and (ii) discounted using the Company’s relevant discount factor of 10.43%.

Navios Acquisition’s balances are included in Navios Partners’ condensed Consolidated Balance Sheets as of March 31, 2022 and Navios Partners’ Consolidated Balance Sheets as of December 31, 2021, while Navios Acquisitions’ results of operations are only included in Navios Partners’ condensed Consolidated Statement of Operations for the three month period ended March 31, 2022.

The following table summarizes the fair value of the consideration transferred the fair value of assets acquired and liabilities assumed and the fair value of the noncontrolling interest in Navios Acquisition assumed on August 25, 2021:

 

Purchase consideration:

  

Fair value of the consideration

   $ 150,000  

Fair value of noncontrolling interest (37.6%)

     57,635  
  

 

 

 

Total purchase consideration

     207,635  

Fair value of Navios Acquisition’s assets acquired and liabilities assumed:

  

Vessels

     1,003,040  

Other long-term assets

     27,291  

Operating lease assets

     128,619  

Current assets (including cash and restricted cash of $32,394)

     64,180  

Favorable lease terms

     112,139  

Unfavorable lease terms

     (6,529

Long term debt and financial liabilities assumed (including current portion)

     (811,608

Operating lease liabilities (including current portion)

     (128,619

Current liabilities

     (176,916
  

 

 

 

Fair value of Navios Acquisition’s net assets

     211,597  
  

 

 

 

Bargain gain upon obtaining control

   $ 3,962  
  

 

 

 

The intangible assets and liabilities, listed below, as determined at the date of obtaining control and are amortized under the straight line method over the period indicated below:

 

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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 unit and per unit data)

 

     Within One
Year
    Year
Two
    Year
Three
     Year
Four
     Year
Five
     Year Six and
thereafter
     Total  

Time charters with favorable lease terms

   $ 24,398       18,232       18,156        17,702        11,182        22,469      $ 112,139  
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Time charters with unfavorable lease terms

   $ (4,672     (1,857     —          —          —          —        $ (6,529
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Intangible assets and liabilities subject to amortization are amortized using straight line method over their estimated useful lives to their estimated residual value of zero.

The following is a summary of the identifiable intangible asset and liability at the date of obtaining control:

 

     Amount  

Description

  

Favorable lease terms

   $ 112,139  

Unfavorable lease terms

   $ (6,529

NOTE 4 – CASH AND CASH EQUIVALENTS

Cash and cash equivalents and restricted cash consist of the following:

 

     March 31,
2022
     December 31,
2021
 

Cash and cash equivalents

   $ 96,483      $ 159,467  

Restricted cash

     11,713        9,979  
  

 

 

    

 

 

 

Total cash and cash equivalents and restricted cash

   $ 108,196      $ 169,446  
  

 

 

    

 

 

 

As of March 31, 2022 and December 31, 2021, restricted cash amounted to $11,713 and $9,979, respectively, and mainly related to amounts held in retention accounts in order to service debt and interest payments, as required by certain of the Company’s credit facilities and financial liabilities.

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.

NOTE 5 – VESSELS, NET

 

Vessels    Cost      Accumulated
Depreciation
     Net Book
Value
 

Balance December 31, 2021

   $ 3,220,627      $ (368,057    $ 2,852,570  
  

 

 

    

 

 

    

 

 

 

Additions/ (Depreciation)

     2,646        (35,905      (33,259
  

 

 

    

 

 

    

 

 

 

Balance March 31, 2022

   $ 3,223,273      $ (403,962    $ 2,819,311  
  

 

 

    

 

 

    

 

 

 

During the three month periods ended March 31, 2022 and 2021, the Company capitalized certain extraordinary fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation, amounted to $2,646 and $3,467, respectively, and are presented under the caption “Acquisition of/ additions to vessels and favorable lease terms, net of cash acquired” in the condensed Consolidated Statements of Cash Flows (see Note 13 — Transactions with related parties and affiliates).

 

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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 unit and per unit data)

 

Acquisition of Vessels

2021

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 its affiliate, Navios Holdings, for an acquisition cost of $39,320 (including $70 capitalized expenses), including working capital balances of $(5,766) (see Note 13 — Transactions with related parties and affiliates).The acquisition of the individual vessels was effected through the acquisition of all of the capital stock of the respective vessel-owning companies, which held the ownership and other contractual rights and obligations related to each of the acquired vessels. Management accounted for each acquisition as an asset acquisition under ASC 805.    

Sale of Vessels

2021

On March 25, 2021, the Company sold the Joie N, a 2011-built Ultra-Handymax vessel of 56,557 dwt, to an unrelated third party, for a net sale price of $8,190.

On February 10, 2021, the Company sold the Castor N, a 2007-built Containership of 3,091 TEU to an unrelated third party for a net sale price of $8,869.

On January 28, 2021, the Company sold the Solar N, a 2006-built Containership of 3,398 TEU to an unrelated third party for a net sale price of $11,074.

On January 13, 2021, the Company sold the Esperanza N, a 2008-built Containership of 2,007 TEU to an unrelated third party for a net sale price of $4,559.

Following the sale of the vessels during the period ended March 31, 2021, the aggregate amount of $511, was presented under the caption “Loss on sale of vessels” in the condensed Consolidated Statements of Operations.

Vessels agreed to be sold

In February 2022, Navios Partners agreed to sell the Navios Utmost and the Navios Unite, two 2006-built Containerships of 8,204 TEU each, to an unrelated third party, for an aggregate sales price of $220,000. The sale is expected to be completed during the second half of 2022 and the gain on sale of vessels is expected to be approximately $144,304.

NOTE 6 – INTANGIBLE ASSETS AND LIABILITIES

Intangible assets as of March 31, 2022 and December 31, 2021 consisted of the following:

 

     Cost      Accumulated
Amortization
     Net Book
Value
 

Favorable lease terms December 31, 2021

   $ 195,854      $ (95,432    $ 100,422  

Amortization for the period

            (6,865      (6,865
  

 

 

    

 

 

    

 

 

 

Favorable lease terms March 31, 2022

   $ 195,854      $ (102,297    $ 93,557  
  

 

 

    

 

 

    

 

 

 

Amortization expense of favorable lease terms for each of the periods ended March 31, 2022 and 2021 is presented in the following table:

 

     Three month
period ended
March 31,
     Three month
period ended
March 31,
 
     2022      2021  

Favorable lease terms

   $ (6,865    $ (291
  

 

 

    

 

 

 

Total

   $ (6,865    $ (291
  

 

 

    

 

 

 

The aggregate amortization of the intangibles for the 12-month periods ending March 31, is estimated to be as follows:

 

Period    Amount  

2023

   $ 19,508  

2024

     18,156  

2025

     18,020  

2026

     12,606  

2027 and thereafter

     25,267  
  

 

 

 

Total

   $ 93,557  
  

 

 

 

 

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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 unit and per unit data)

 

Intangible assets subject to amortization are amortized using straight line method over their estimated useful lives to their estimated residual value of zero. The weighted average useful lives are 6.0 years for the remaining favorable lease terms.

Intangible liabilities as of March 31, 2022 and December 31, 2021 consisted of the following:

 

     Cost      Accumulated
Amortization
     Net Book
Value
 

Unfavorable lease terms December 31, 2021

   $ 231,019      $ (108,538    $ 122,481  

Amortization

     —          (21,839      (21,839
  

 

 

    

 

 

    

 

 

 

Unfavorable lease terms March 31, 2022

   $ 231,019      $ (130,377    $ 100,642  
  

 

 

    

 

 

    

 

 

 
  

 

 

    

 

 

    

 

 

 

Amortization income of unfavorable lease terms for each of the periods ended March 31, 2022 and 2021 is presented in the following table:

 

     Three month
period ended
March 31,
2022
     Three month
period ended
March 31,
2021
 

Unfavorable lease terms

   $ 21,839      $ —    
  

 

 

    

 

 

 

Total

   $ 21,839      $ —    
  

 

 

    

 

 

 

The aggregate amortization of the intangible liabilities for the 12-month periods ending March 31 is estimated to be as follows:

 

Year

   Amount  

2023

   $ 55,364  

2024

     20,431  

2025

     12,462  

2026

     11,445  

2027 and thereafter

     940  
  

 

 

 

Total

   $ 100,642  
  

 

 

 

Intangible liabilities subject to amortization are amortized using straight line method over their estimated useful lives to their estimated residual value of zero. The weighted average useful lives are 2.7 years for the remaining unfavorable lease terms.

NOTE 7 – BORROWINGS

Borrowings as of March 31, 2022 and December 31, 2021 consisted of the following:

 

     March 31,
2022
     December 31,
2021
 

Credit facilities

   $ 801,699      $ 825,267  

Financial liabilities

     530,579        549,178  
  

 

 

    

 

 

 

Total borrowings

   $ 1,332,278      $ 1,374,445  

Less: Current portion of long-term borrowings, net

     (245,177      (255,137

Less: Deferred finance costs, net

     (12,438      (12,736
  

 

 

    

 

 

 

Long-term borrowings, net

   $ 1,074,663      $ 1,106,572  
  

 

 

    

 

 

 

As of March 31, 2022, the total borrowings, net of deferred finance costs under the Navios Partners’ credit facilities and financial liabilities were $1,319,840.

Credit Facilities

As of March 31, 2022, the Company had secured credit facilities with various banks with a total outstanding balance of $801,699. 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 rate (as defined in the loan agreement) plus spread ranging from 225 bps to 350 bps, per annum. The facilities are repayable in either semi-annual or quarterly installments, followed by balloon payments with maturities, ranging from the first quarter of 2023 to the first quarter of 2027. See also the maturity table included below.

 

F-17


Table of Contents

NAVIOS MARITIME PARTNERS L.P.

UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

 

ABN Amro Bank N.V.: On March 28, 2022, Navios Partners entered into a new credit facility with ABN Amro Bank N.V. of up to $55,000 in order to refinance the existing indebtedness of three of its vessels and for general corporate purposes. On March 31, 2022, the full amount was drawn. As of March 31, 2022, the total outstanding balance was $55,000 and is repayable in 20 consecutive quarterly installments of $1,700 each together with a final balloon payment of $21,000 to be paid on the last repayment date. The facility matures in the first quarter of 2027 and bears interest at daily cumulative or non-cumulative compounded RFR rate (as defined in the loan agreement) plus 225 bps per annum.

Amounts drawn under the credit facilities are secured by first preferred mortgages on certain Navios Partners’ vessels and other collateral and are guaranteed by the respective vessel-owning subsidiaries.

Credit Facilities and Financial Liabilities

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’, Angeliki Frangou’s or their 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 Agreements (as defined herein).

As of each of March 31, 2022 and December 31, 2021, the security deposits under certain sale and leaseback agreements were $10,078, 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 requ