HSH Nordbank continues collaboration with Navios Group in second Nautilus transaction
- Risk-prone legacy assets of HSH Nordbank are reduced by nine-digit USD amount
- Navios acquires 14 ships at serious risk of insolvency
- Fresh capital provides balance sheet with additional relief and creates entrepreneurial incentives
Hamburg/Kiel, April 23, 2015 - HSH Nordbank is easing the pressure on its balance sheet with a further Nautilus transaction, thereby continuing to resolutely wind down its risk-prone legacy assets. To this end, HSH Nordbank and the Navios Group ("Navios") have signed a binding letter of intent for the acquisition of 14 ships at serious risk of insolvency. In the second transaction with Navios since 2013 a loan in a nine-digit USD amount will be financed by a new banking syndicate. Moreover, Navios will contribute fresh capital in an eight-digit amount to the financing. At the same time, HSH Nordbank will remain involved in the future financing construct in order to benefit from a potential recovery in the shipping markets. The transaction is expected to close in the second quarter of 2015.
"The benefits of the transaction are self-evident: We are reducing our risks and Navios is broadening its portfolio to include complementary ships. The ships in turn are given economic prospects as a result of becoming part of a new fleet", said Wolfgang Topp, Generalbevollmächtigter and Head of HSH Nordbank's Restructuring Unit.
The portfolio includes seven container ships and seven dry bulkers. The average age of the ships is around four years. Navios acquired a portfolio of ten ships financed by HSH Nordbank in a first Nautilus transaction in 2013.
Nautilus is a financing model developed by HSH Nordbank for insolvent ships and those at serious risk of insolvency. The structure supplies the ships with fresh capital from an investor and thus with a solid capital structure. In addition, the existing credit amount is partly refinanced by a new creditor, which means that HSH Nordbank is no longer exposed to the full original loan volume. The Bank is thereby reducing its risks and given the opportunity to recover the original credit amount at a later point of time depending on the general trend in the market.
The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.
This press information can contain forward-looking statements. These statements are based on our beliefs and assumptions, on information currently available to us which we consider reliable. Forward-looking statements include all statements which are not historical facts, including information concerning future growth prospects and future economic developments.
Such forward-looking statements are based on assumptions relating to future events and are subject to uncertainties, risks and other factors, a large number we cannot influence. Thus actual events can differ considerably from the forward-looking statements made. We make no warranty for the correctness or completeness of these statements or the actual occurrence of the statements made. Furthermore, we assume no obligation for updating the forward-looking statements after this information has been published.