Wednesday, March 18, 2015

THE NYFEX Report: The IPO of Navios Maritime Midstream Partners

The IPO of Navios Maritime Midstream Partners (NAP) is the fourth public flotation by Navios Group, a conglomerate headed by Angeliki Frangou. It has been preceded by Navios Maritime Partners Inc. (NM), the group's holding company and flagship, Navios Maritime Partners L.P. (NMM), a master limited partnership with ownership interests in dry-cargo bulk carriers and container ships, and Navios Maritime Acquisition Corp. (NNA), an owner of crude oil & product carriers and sponsor of the recent IPO.

As with any master limited partnership, NAP has a sponsor or general partner, which holds a 2% interest, and limited partners that are called common unit holders. The sponsor of NAP is a subsidiary of Navios Maritime Acquisition Corp. Following the IPO, Navios Maritime Acquisition will own a 57.5% interest in the partnership, including the 2% general partner interest.

The partnership was formed to own crude oil tankers under long-term time charters, or employment contracts. Its initial fleet consists of four VLCCs, all acquired from the sponsor. Based on the IPO prospectus, the company aims to employ its vessels on long-term charters of at least five years.

Continue reading the full article published on Seeking Alpha

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