(Lloyds List Via Thomson Dialog NewsEdge) Navios Maritime Holdings, the Angeliki Frangou-led dry bulk shipping and logistics company, has revealed plans to raise $300m from a bond issue in the US.

The exercise is aimed at replacing a large tranche of borrowings under its present credit facility with HSH Nordbank. According to a brief company statement the senior notes will be 'fully and unconditionally guaranteed' by existing Navios subsidiaries.

Ms Frangou was unobtainable yesterday and is thought to be already in the US leading the company's roadshow to investors.

Some sources familiar with the proposed deal suggested the issue could be completed as early as next week, but Navios emphasised the offering scheme was 'subject to market and other conditions'.

Ms Frangou has previously described herself to Lloyd's List as a financial 'conservative' and one financier said the offering was a 'logical development'.

The source said the aim was likely to 'access a cheaper debt structure, secure longer-term money and free cash to reinvest'. Details from Navios itself were scant although the notes it plans to issue would be due in 2014.

It is the second bond offering to come to light in the past few weeks following a surprise issue by a small British bulk operator.

However it is likely to be the first by a leading bulk operator for some time and appears to confirm US market predictions that debt issues may come back into fashion for shipping.

Nothing has been learnt about pricing aspirations but the proposed issue was yesterday given a preliminary 'B' rating by Standard ' Poor's Ratings Services.

At the same time S'P assigned Navios its 'BB-' long-term corporate credit rating, saying the outlook was 'stable'.

S'P credit analyst Andreas Kindahl said the ratings reflected dry bulk shipping's 'below-average industry characteristics, Navios' relatively weak credit measures, largely owing to high leverage, and some exposure to short-term speculative derivatives trading'. But he also pointed to the company's high level of medium-term contract coverage, solid reputation and modern fleet as balancing factors.

'Standard ' Poor's expects the company's modern fleet and high, albeit relatively short, contract coverage should enable it to maintain a credit profile and competitive position in line with the ratings in the medium term,' Mr. Kindahl added.

The Nasdaq listed company earns its revenues from owned and chartered-in vessels, contracts of affreightment and port terminal operations in Uruguay.

Since taking over Navios last year Ms Frangou has boosted the shipowning profile of the company to 16 owned vessels and it has purchase options on a further nine modern bulkers.

Copyright 2006 Informa Martime Trade and Transport

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Navios taps US bond market for $300m

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