Crude takes to the seas: Navios Maritime Midstream LP files for a $100 million IPO

Navios Maritime Midstream Partners LP, an MLP formed by Navios Maritime (NM) to operate four contracted crude oil tankers, filed on Thursday with the SEC to raise up to $100 million in an initial public offering.

Navios Maritime Midstream LP's fleet of four very large crude carriers (VLCCs) include two vessels built in 2001 with contracts expiring in 2017 and two vessels built in 2010 and 2011 with about 11 years remaining. Navios has indicated that it may also acquire refined petroleum product tankers, chemical tankers and LPG tankers. Its VLCCs are contracted to China-based COSCO Group (78% of revenue) and Taiwan-based Formosa Petrochemical (22%). The company's direct parent, Navios Maritime Acquisition, owns 44 vessels, including 29 product tankers, 11 VLCCs and 4 chemical tankers. Navios Maritime Acquisition is controlled by Navios Maritime Holdings, which has direct ownership of 63 vessels.

The company's primary shareholder is Navios Maritime Acquisition (NNA), which is controlled by Navios Maritime Holdings (NM).

Historical revenue fell almost 1% to $31 million for the six months ended June 30, 2014. Pro forma net income was $10 million during the period ($21 million in the LTM). It is forecasting $22 million in net income for the twelve months ended June 30, 2015. The MLP had $387 million of assets at quarter-end.

The Monte Carlo, Monaco-based company, which was formed in 2014 and booked $63 million in historical revenue for the 12 months ended June 30, 2014, plans to list on the NYSE. Navios Maritime Midstream initially filed confidentially on August 20, 2014. BofA Merrill Lynch, Citi, Credit Suisse and J.P. Morgan are the joint bookrunners on the deal. No pricing terms were disclosed.