Navios Maritime Acquisition (NYSE: NNA.U proposed) is expected this week and First Class Navigation (AMEX: NNV.U proposed) during the week of June 30.
The deal:
Navios Maritime Acquisition plans to price 22 million units at $10 each. Each unit will consist of one common share plus one warrant at $7 per share. The IPO is expected to start trading on Thursday, June 26.
In addition to the offering, Navios Maritime Holdings (NYSE:NM) has committed to purchase 7.6 million warrants at $1.00 per warrant in a private placement at the completion of the offering.
Now here’s what makes SPACs interesting: The funds from the proceeds of this offering, about $218.9 million, or $9.95 per unit, will be placed in trust. Navios Maritime Acquisition has given itself 24 months to find an acquisition — or 36 months if its shareholders approve an extension. Otherwise, the company will be liquidated and the funds held in the trust will be distributed to its public shareholders.
This is like buying a call option on Navios Maritime’s management to pull off a deal.
If they do, you can go along with management. If you choose not to, then you can pick up your marbles and get your money back plus accrued interest. If Navios’ management doesn’t deliver, the worst that can happen is you get your money back plus interest.
The company:
Navios Maritime Acquisition is a Piraeus, Greece-based “blank check” company recently formed to acquire one or more maritime transportation businesses outside the drybulk shipping sector.
Now that’s interesting -– outside the drybulk shipping sector.
That’s got to be a selling point. Consider the last drybulk shippers that have gone public:
Britannia Bulk Holdings (NYSE: DWT), a London-based provider of drybulk shipping in the Baltic region, priced its IPO of 8.3 million shares at $15 each on June 18 – last Wednesday. That was below its original filing range of $17 to $19 per share. On Friday, June 20, Britannia closed at $13.20, DOWN 12 percent from its initial offering price.
Safe Bulkers (NYSE: SB), an Athens, Greece-based provider of marine drybulk transportation services worldwide, priced its IPO of 10 million shares at $19 each on May 28. That, too, was below its original filing range of $20 to $22 per share. On Friday, June 20, Safe Bulkers closed at $18.56, DOWN 2.3 percent from its initial offering price.
Navios Maritine Partners (NYSE: NMM), an Athens, Greece-based provider of drybulk shipping, priced its IPO of 10 million shares at $20 each on Nov. 12, 2007. On Friday, June 20, Navios closed at $14.45, DOWN 27.8 percent from its initial offering price.
It’s no wonder that Navios Acquisition is distancing itself from the drybulk shippers.
As for First Class Navigation, stay tuned for that one and the IPOs in next week’s new-issues calendar.