Navios South American Logistics Inc. Announces Proposed Private Offering of $500 Million of Senior Secured Notes Due 2025
Rhea-AI Summary
Navios South American Logistics announced plans to offer approximately $500 million of Senior Secured Notes due 2025 through a private placement, subject to market conditions. The proceeds will be utilized to discharge its existing 7.25% Senior Notes due 2022, repay outstanding amounts under its Term Loan B Facility, and cover related fees, with any remaining funds allocated for general corporate purposes. The Notes will be offered only to qualified institutional buyers in the U.S. and in offshore transactions.
Positive
- Intended use of proceeds includes discharging existing debt, which may improve financial stability.
- Potential for decreased interest expenses by refinancing existing higher-interest debt.
Negative
- Offering of Notes may lead to shareholder dilution depending on the terms and conditions.
- Uncertainty regarding the completion of the offering due to market and other conditions.
News Market Reaction – NM
In the trading session that priced this news, NM gained 2.20%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MONTEVIDEO, Uruguay, June 16, 2020 (GLOBE NEWSWIRE) -- Navios South American Logistics Inc. (“Navios Logistics” or the “Company”) announced today that the Company and Navios Logistics Finance (US) Inc. (“Logistics Finance”), its wholly owned finance subsidiary, intend to offer through a private placement, subject to market and other conditions, approximately
The Company intends to use the net proceeds from the offering of the Notes to satisfy and discharge the indenture governing its outstanding
The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the benefit of U.S. persons unless so registered except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws in other jurisdictions.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities, and does not constitute an offer, solicitation or sale of any Notes or other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer of the Notes will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About Navios South American Logistics Inc.
Navios Logistics is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminal, river barge and coastal cabotage operations.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding completion of the offering. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Logistics at the time these statements were made. Although Navios Logistics believes that the expectations reflected in such forward-looking statements are reasonable at the time made, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Logistics. Actual results may differ materially from those expressed or implied by such forward-looking statements. Navios Logistics expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Logistics’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Contact:
Navios South American Logistics Inc.
+1.212.906.8646
investors@navios-logistics.com