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SEC Filings

6-K
NAVIOS MARITIME ACQUISITION CORP filed this Form 6-K on 11/13/2018
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NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

 

     Fair Value Measurements at September 30, 2018 Using  
     Total      Level I      Level II      Level III  

Cash and cash equivalents

   $ 46,102      $ 46,102      $ —      $ —  

Restricted cash

   $ 2,211      $ 2,211      $ —      $ —  

Ship mortgage notes and premium

   $ 554,459      $ 554,459      $ —      $ —  

Other long-term debt(1)

   $ 357,770      $ —      $ 357,770      $ —  

Due from related parties, long-term(2)

   $ 50,902      $ —      $ 50,902      $ —  

 

     Fair Value Measurements at December 31, 2017 Using  
     Total      Level I      Level II      Level III  

Cash and cash equivalents

   $ 81,151      $ 81,151      $ —      $ —  

Restricted cash

   $ 5,307      $ 5,307      $ —      $ —  

Ship mortgage notes and premium

   $ 572,214      $ 572,214      $ —      $ —  

Other long-term debt(1)

   $ 407,687      $ —      $ 407,687      $ —  

Due from related parties, long-term(2)

   $ 54,593      $ —      $ 54,593      $ —  

 

(1)

The fair value of the Company’s other long-term debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the Company’s creditworthiness.

(2)

The fair value of the Company’s long term amounts due from related parties is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the counterparty’s creditworthiness.

NOTE 11: TRANSACTIONS WITH RELATED PARTIES

The Navios Holdings Credit Facilities: On September 19, 2016, Navios Acquisition entered into a $70,000 secured loan facility with Navios Holdings. The loan facility was secured by all of Navios Holdings’ interest in Navios Acquisition and 78.5% of Navios Holdings’ interest in Navios South American Logistics Inc. (“Navios Logistics”), representing a majority of the shares outstanding of Navios Logistics. The secured loan facility provided for an arrangement fee of $700, was available for up to five drawings and has a fixed interest rate of 8.75% with a maturity date of November 15, 2018. The arrangement fee was deferred and amortized using the effective interest rate method. On November 3, 2017, Navios Holdings prepaid in full the outstanding amount with a payment of $55,132. The prepayment amount consisted of the $50,000 drawn under the facility and $5,132 of accrued interest. As of each of September 30, 2018 and December 31, 2017, the outstanding receivable balance was $0. Total interest income, including amortization of deferred fees, for the three and nine month periods ended September 30, 2018 was $0. Total interest income, including amortization of deferred fees, for the three and nine month periods ended September 30, 2017 was $1,272 and $3,670, respectively. 

Management fees: Pursuant to the Management Agreement dated May 28, 2010 and as amended in May 2012, May 2014 and May 2016, the Manager provided commercial and technical management services to Navios Acquisition’s vessels for a fixed daily fee of: (a) $6.35 per MR2 product tanker and chemical tanker vessel; (b) $7.15 per LR1 product tanker vessel; and (c) $9.5 per VLCC, through May 2018.

Pursuant to an amendment to the Management Agreement dated as of May 3, 2018, Navios Acquisition fixed the fees for commercial and technical ship management services of its fleet for two additional years from May 29, 2018 through May 2020, at a daily fee of: (a) $6.5 per MR2 product tanker and chemical tanker vessel; (b) $7.15 per LR1 product tanker vessel; and (c) the current daily fee of $9.5 per VLCC.

Dry docking expenses are reimbursed by Navios Acquisition at cost.

Total management fees for each of the three month periods ended September 30, 2018 and 2017 were $23,340 and $23,939, respectively. Total management fees for each of the nine month periods ended September 30, 2018 and 2017 were $69,652 and $71,035, respectively.

General and administrative expenses: Pursuant to the Administrative Services Agreement with Navios Holdings, pursuant to which Navios Holdings provides certain administrative management services to Navios Acquisition 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 services. Navios Holdings is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. In May 2014, Navios Acquisition extended the duration of its existing Administrative Services Agreement with Navios Holdings, until May 2020.

 

F-21

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