Benzinga | Aug 27, 2021 07:11AM EDT

Navios Maritime Acquisition Stock Skyrockets On Merger With Navios Maritime Partners

* Navios Maritime Partners L.P. (NYSE:NMM) and Navios Maritime Acquisition Corp (NYSE:NNA) have agreed to merge; under the agreement, shareholders of Navios Acquisition will receive 0.1275 of a common unit of Navios Partners for each share.

* Based on Navios Partners' August 24 closing price, the merger consideration reflects a per-share value of $3.40, representing a premium of 65% to Navios Acquisition August 24 closing price.

* Navios Acquisition will merge with a subsidiary of Navios Partners and become a wholly-owned subsidiary of Navios Partners.

* The transaction will create a U.S. publicly-listed shipping company, with over 140 vessels aggregating approximately 15 million deadweight tons operating in three segments through 15 different vessel types and serving more than ten end markets.

* The current value of the combined company's vessels is estimated at $4.2 billion, and the combined company will also have an enterprise value of ~$2.25 billion.

* The combined fleet is well-positioned to take advantage of the healthy dry cargo markets and any future upturn in the tanker market. It has a $1.6 billion pipeline of contracted revenue coupled with about 47,634 available days in 2022.

* The combined company will be led by the existing board of directors of Navios Partners, comprised of seven directors, a majority of whom are independent.

* Navios Partners provided Navios Acquisition with a $45.0 million interim working capital facility in connection with the transaction.

* The merger is expected to close in 4Q21.

* Price Action: NMM shares are trading lower by 6.58% at $23.98, and NNA higher by 38% at $2.90 during the premarket session on Friday.