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    Navigator Holdings Ltd (NVGS)

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    Navigator Holdings Ltd. (NVGS) is a global leader in the seaborne transportation of liquefied gases, including petrochemical gases, liquefied petroleum gas (LPG), and ammonia. The company operates a fleet of 56 liquefied gas carriers and holds a 50% share in an Ethylene Export Terminal in Texas. NVGS provides transportation services for energy companies, industrial users, and commodity traders, facilitating the efficient movement of liquefied gases across international markets.

    1. Operating Revenues - Provides transportation services for liquefied gases, including petrochemical gases, LPG, and ammonia, using a fleet of specialized vessels.
    2. Unigas Pool - Operates vessels collaboratively within a pool arrangement to optimize fleet utilization and revenue generation.
    3. Luna Pool Collaborative Arrangements - Manages vessel operations collaboratively, focusing on ethylene-capable vessels.
    4. Ethylene Export Terminal - Operates a terminal with cryogenic storage and export capacity for ethylene, supporting global supply chains.
    5. Navigator Greater Bay Joint Venture - Owns and operates ethylene carriers through a joint venture, enhancing the company’s presence in the ethylene transportation market.
    1. Given that throughput at your ethylene export terminal was 159,183 tons in Q4 2024, below capacity due to U.S. cracker turnarounds reducing domestic supply and narrowing the arbitrage , what specific steps are you taking to mitigate these risks and improve terminal utilization going forward?

    2. With plans to sell your older vessels proceeding slowly in a less liquid market and potential buyers interested only on a vessel-by-vessel basis , what is your timeline for divesting these ships, and how might fluctuations in vessel values impact your fleet renewal and capital allocation strategies?

    3. Considering that you have significant capital commitments for newbuild vessels, having paid $42 million in initial deposits with expected deliveries in 2027 and 2028 , how do you plan to finance these vessels, and what strategies are in place to secure long-term charters to ensure a satisfactory return on investment?

    4. Given that you have approximately a dozen ships coming off contract over the next six months , and the ethylene arbitrage has widened by almost $200 over the last two months , how are you positioning to capitalize on potential rate increases, and what risks do you anticipate in re-chartering these vessels in the current market environment?

    5. With the ongoing narrow ethylene arbitrage impacting terminal volumes and contributions expected to be softer in Q1 2025 compared to Q4 2024 , what steps are being taken to improve the terminal's performance, and what is your outlook for recovery in the near term?

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Navigator Vesta

    2025

    Acquired for $29.2 million with an expected delivery on March 17, 2025; the vessel features a 17,000 cubic meters capacity (built in 2009) and the deal was partially financed with a $74.6 million Senior Secured Term Loan from Nordea Bank Abp.

    Navigator Titan

    2025

    Purchased on February 24, 2025 for $27.4 million, this German-built liquefied ethylene gas carrier (capacity 17,000 cubic meters, built in 2010) was financed through the $74.6 million Senior Secured Term Loan Facility along with cash on hand.

    Navigator Hyperion

    2025

    Acquired on February 19, 2025 for $27.4 million, this German-built liquefied gas carrier (with a capacity of 17,000 cubic meters and ethylene capabilities) was financed via a $74.6 million Senior Secured Term Loan Facility (bearing Term SOFR plus 180 bps and maturing on June 7, 2026).

    Azane Fuel Solutions

    2023

    Navigator Holdings Ltd. and Yara Growth Ventures each acquired a 14.5% interest in this Norwegian startup for €2.7 million (~$3 million) as part of a Series A round aimed at developing ammonia fuel handling technology and building the world’s first ammonia bunkering network.

    Navigator Greater Bay Joint Venture

    2023

    This joint venture, with Navigator Holdings at 60% and Greater Bay Gas Co. Ltd. at 40%, involved the acquisition of five ethylene-capable carriers (including vessels like Navigator Solar, Castor, Equator, and Vega) with total financing from a term loan, equity, and cash contributions helping to enhance fleet control and Luna Pool earnings.

    Othello Shipping Company S.A.

    2021

    Navigator Holdings acquired Othello Shipping Company S.A. and its 18 vessel-owning entities on August 4, 2021, adding a diverse fleet (including modern 22,000 cbm semi-refrigerated vessels, 12,000 cbm ethylene vessels, and various gas carriers) with a provisional book value of approximately $377 million through share issuance and assumption of $175.2 million of net debt.

    Ultragas ApS

    2021

    Completed on August 4, 2021, this acquisition added 18 vessels (with a provisional book value of $377 million) to Navigator’s fleet; the deal was structured via the issuance of 21.2 million new shares and the assumption of $175.2 million in net debt, positioning Navigator as a leader in the handysize liquefied gas carrier market.

    Recent press releases and 8-K filings for NVGS.

    Navigator Holdings Ltd. Completes US$40 Million Tap Issue
    NVGS
    Debt Issuance
    • The company completed a US$40 million tap issue under its outstanding 7.25% senior unsecured bonds maturing in October 2029, as detailed in the report (Q1 2025).
    • Navigator Holdings Ltd. entered into a Tap Issue Addendum with Nordic Trustee AS on April 2, 2025, documenting additional bonds issuance under ISIN NO0013379446 (Q1 2025).
    Apr 2, 2025, 12:00 AM
    Navigator Holdings Completes US$40 Million Tap Issue
    NVGS
    Debt Issuance
    • On March 28, 2025, Navigator Holdings Ltd. completed a US$40 million tap issue in the Nordic bond market.
    • The tap issue pertained to its 7.25% senior unsecured bonds maturing in October 2029, leaving an available borrowing capacity of US$60 million following the issuance.
    • The transaction was executed at par value, with net proceeds designated for general corporate purposes in line with the bond terms.
    Mar 31, 2025, 12:00 AM
    Navigator Gas Completes Acquisition of Ethylene Gas Carriers
    NVGS
    M&A
    • Navigator Holdings Ltd. finalized the acquisition of three handysize liquefied ethylene gas carriers to support expanded export capacity.
    • The newly acquired vessels, each with a 17,000 cubic meter capacity, are named Navigator Hyperion, Navigator Titan, and Navigator Vesta.
    • Navigator Hyperion is currently on charter, while Navigator Titan and Navigator Vesta are expected to begin spot market operations soon.
    Mar 17, 2025, 12:00 AM
    Navigator Holdings Delivers Solid Q4 2024 Performance
    NVGS
    Earnings
    Debt Issuance
    Dividends
    New Projects/Investments
    • Q4 revenues increased by 2% YoY with total operating revenue of $144 million and sustained vessel utilization at 92.2%, supporting an adjusted EBITDA of approximately $73 million ( , ).
    • The company executed key debt refinancing actions, including issuing $100 million of new unsecured bonds at a 7.25% coupon and drawing down a $147.6 million secured term loan to refinance existing facilities ( ).
    • A shareholder-friendly capital return was implemented with a declared cash dividend of $0.05 per share and an overall share buyback targeting 25% of net income ( ).
    • Strategic investments include the completion of an ethylene export terminal expansion, enhancing capacity and positioning the business for improved throughput and future offtake opportunities ( , ).
    Mar 12, 2025, 2:01 PM
    Navigator Holdings Ltd Reports Q4 2024 Earnings
    NVGS
    Earnings
    Debt Issuance
    Dividends
    • Financial performance: Q4 2024 delivered total operating revenues of $144m, adjusted EBITDA of $73.4m, and net income attributable to stockholders of $21.6m (adjusted net income of $27.0m) indicating a sequential improvement and record annual EBITDA achievement.
    • Operational highlights: The company achieved a fleet utilization of 92.2% and an average TCE rate of $28,341/day, supporting robust earnings and solid shipping performance during the quarter.
    • Capital allocation and liquidity: The firm reported strong liquidity with $139.8m in cash at year-end despite significant cash uses for dividends, share repurchases, and capex payments, along with a declared $0.05/share dividend and planned additional share buybacks to reach 25% of net income.
    • Debt management: Navigator issued $100m of new senior unsecured bonds at 7.25%, effectively refinancing existing debt to extend maturities and reduce financing costs, complemented by new term loan facilities to finance vessel acquisitions.
    Mar 12, 2025, 2:00 PM
    Navigator Holdings Ltd. Reports Q4 2024 Results
    NVGS
    Earnings
    Dividends
    Share Buyback
    • Dividend and Share Repurchase: Navigator declared a $0.05 per share dividend for Q4 2024 and plans to repurchase approximately $1.9 million of common stock, with both actions together representing 25% of the quarter's net income.
    • Operating Performance Highlights: The company reported $144.0 million in operating revenue and $21.6 million in net income attributable to stockholders for the three months ended December 31, 2024, alongside improvements in EBITDA and basic EPS.
    • Debt and Liquidity Update: During the quarter, Navigator increased its debt by $51.9 million to $853.5 million while maintaining a liquidity position of $139.8 million after a significant payment related to its Terminal Expansion Project.
    Mar 12, 2025, 12:00 AM