Question-and-Answer Session
Operator
(Operator instructions) From Merrill Lynch, your first question comes from Ken Hoexter. Please go ahead sir.
Ken Hoexter – Merrill Lynch
Hi. Good morning. Angeliki, just on the new vessel, it’s a little bit shorter term than some of your other ones on a three year to start, can you talk about how the negotiations are going in this market level now, what made you want to make them move in this market to signing up? Obviously, you are getting a good rate relative to what you are paying, so just wondering what the appetite in the market for these type of contracts is right now?
Angeliki Frangou
This is a regular Navios side from the previous time, because today you will not be able to have a $24,000 gross, $23,700 net for three years. So, you mentioned, these can be yearly rate around, you could have $18,000 or $19,000 for it one year, but not a three-year rate. So, the reality, this is a very good charter, it brings us in the end of 2012. By the time the vessel, you have generated about 21 million down this vessel, we bought it for 32 million, so you are down to about $11 million. So, for us, this is going to be around 11 years old. So, to me, that is a risk that even if you take the cycle of as a residual value risk, it’s very, very good, because you still have over 10 years on the life of that vessel, while you are up sitting at about 11 million. So, this is a good cash flow because for Navios Partners’ gains ability to be an accretive deal in case of distribution and at the same time, you come to a very good residual value risk for the vessel.
Ken Hoexter – Merrill Lynch
Okay. Great. And so, you mentioned that obviously sorority wasn’t obvious vessel. So, you are not seeing much in the way of any kind of startup discussions for any longer-term charters in the market now then, right?
Angeliki Frangou
There is a period charter, but you know, today I think it’s not a moment in having in front of you 2010, I wouldn’t take that as the time to do long-term charters. If you really are in a need, you do it, but your charter, your major charter in period activity should have happened in 2008.
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