SEC Comment Letter for Navios Maritime Partners L.P. (NMM) (CIK 0001415921) (NMM) — Dec 28, 2012
Navios Maritime Partners L.P. (NMM) (CIK 0001415921)
Date: Dec. 28, 2012 · CIK: 0001415921 · Accession: 0000000000-12-069808
AI Filing Summary & Sentiment
Reasoning
Referenced dates: December 21, 2012
Letter
December 28 , 2012 Via E -Mail Mr. Efstratios Desypris Chief Financial Officer Navios Maritime Partners L.P. 85 Akti Miaouli Street Piraeus, Greece 185 38
Re: Navios Maritime Partners L.P. Form 20-F for the Year Ended December 31, 2011 Filed March 7, 2012 Response Letter Dated December 21, 2012 File No. 001 -33811
Dear Mr. Desypris :
We have reviewed your response letter dated December 21, 2012 and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.
Please r espond to this letter within 10 business days by confirming that you will revise your document in f uture filings (unless otherwise indicated) and providing any reque sted information. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.
After reviewing the information you provide in response to these comments, we may have additional comments.
Form 20 -F for the Year Ended December 31, 2011
Critical Accounting Policies, page 86 Impairment of Long -lived Assets
1. We note from your response to our prior comment 3 that you believe that perf orming the impairment test using the 10 -year historical average charter rate for similar vessels is most appropriate because this rate is likely to best reflect the cyclicality of charter rates that your fleet will experience over its remaining expected ec onomic life of 19.1 years. You also responded that you will revise future filings to include more robust disclosure related to the sensitivity of the assumptions used in your impairment tests. However, it is not clear if you intend to include disclosure of a sensitivity analysis explaining how your impairment analysis for your vessels would be impacted in the event that you utilized the
Mr. Efstratios Desypris Navios Maritime Partners L.P. December 28 , 2012 Page 2
most recent five year, three year or one year historical average rates for purposes of estimating cash flows for unfixed days. In light of the fact that you responded that the average remaining time charter term is approximately 3.3 years, as previously indicated we believe such a sensitivity analysis would allow investors to better understand how the Company’s future resu lts of operations may be impacted in the event that daily time charter equivalent rates do not improve from their current levels in future periods. Please confirm that you will revise future filings accordingly.
You may contact Claire Erlanger at (202) 551-3301 or me at (202) 551 -3813 if you have questions regarding comments on the financial statements and related matters. Please contact John Dana Brown at (202) 551 -3859 or Max Webb at (202) 551 -3750 with any other questions.
Sincerely,
/s/ Linda Cvrkel
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December 28 , 2012 Via E -Mail Mr. Efstratios Desypris Chief Financial Officer Navios Maritime Partners L.P. 85 Akti Miaouli Street Piraeus, Greece 185 38 Re: Navios Maritime Partners L.P. Form 20-F for the Year Ended December 31, 2011 Filed March 7, 2012 Response Letter Dated December 21, 2012 File No. 001 -33811 Dear Mr. Desypris : We have reviewed your response letter dated December 21, 2012 and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure. Please r espond to this letter within 10 business days by confirming that you will revise your document in f uture filings (unless otherwise indicated) and providing any reque sted information. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response. After reviewing the information you provide in response to these comments, we may have additional comments. Form 20 -F for the Year Ended December 31, 2011 Critical Accounting Policies, page 86 Impairment of Long -lived Assets 1. We note from your response to our prior comment 3 that you believe that perf orming the impairment test using the 10 -year historical average charter rate for similar vessels is most appropriate because this rate is likely to best reflect the cyclicality of charter rates that your fleet will experience over its remaining expected ec onomic life of 19.1 years. You also responded that you will revise future filings to include more robust disclosure related to the sensitivity of the assumptions used in your impairment tests. However, it is not clear if you intend to include disclosure of a sensitivity analysis explaining how your impairment analysis for your vessels would be impacted in the event that you utilized the Mr. Efstratios Desypris Navios Maritime Partners L.P. December 28 , 2012 Page 2 most recent five year, three year or one year historical average rates for purposes of estimating cash flows for unfixed days. In light of the fact that you responded that the average remaining time charter term is approximately 3.3 years, as previously indicated we believe such a sensitivity analysis would allow investors to better understand how the Company’s future resu lts of operations may be impacted in the event that daily time charter equivalent rates do not improve from their current levels in future periods. Please confirm that you will revise future filings accordingly. You may contact Claire Erlanger at (202) 551-3301 or me at (202) 551 -3813 if you have questions regarding comments on the financial statements and related matters. Please contact John Dana Brown at (202) 551 -3859 or Max Webb at (202) 551 -3750 with any other questions. Sincerely, /s/ Linda Cvrkel Linda Cvrkel Branch Chief