Capital Product Partners L.P. announced, on Friday, an
agreement to issue 9.1 million Class B Convertible Preferred Units
(“Class B Preferred Units”) to funds managed by Kayne Anderson Capital
Advisors, L.P. and Oaktree Capital Management, L.P. as well as and the
Partnership’s Sponsor, Capital Maritime and Trading Corp. (“Capital
Maritime”).The Class B Preferred Units are convertible at any time into common
units of the Partnership (“Common Units”) on a one-for-one basis. The
Class B Preferred Units will pay a fixed quarterly distribution of
$0.21375 per unit.The Partnership intends to use the net proceeds from the issuance of
the Class B Preferred Units together with approximately $54 million from its existing credit facilities and part of its cash balances for the
acquisition of two 5,023 TEU high specification container vessels for a
total consideration of $130 million. Both the M/V ‘Hyundai Premium’ and
M/V ‘Hyundai Paramount’ are 2013 built at Hyundai Heavy Industries Co.
Ltd. The vessels were originally ordered by Capital Maritime and built
to the latest fuel efficient and eco-friendly design. Both vessels have
secured a 12 year time charter employment (+/- 60 days) to Hyundai
Merchant Marine Co. Ltd. (“HMM”) at a gross rate of $29,350 per day.“We are very pleased to have concluded this important transaction for the Partnership, as it offers long term cash flow visibility to our shareholders, further diversifies our revenue stream with the addition
of HMM to our charterers, and we believe, will further underpin our
existing distribution level and allow for distribution growth ahead. In
addition, we acquire two state of the art, eco type, wide beam, fuel
efficient newbuilding container vessels built in one of the best
shipyards in the world to very high specification,” said Mr. Ioannis Lazaridis, Chief Executive and Chief Financial Officer of the Partnership’s General Partner. “Importantly, we are very pleased by the continuous support of our existing shareholders to the Partnership.”The company expects the transaction to complete by the end of March
2013. The Board of Directors of the Partnership unanimously approved the terms of this transaction following a unanimous recommendation by the
conflicts committee, which is comprised of entirely independent
directors, with respect to the vessel acquisitions.Evercore Partners acted as exclusive placement agent in connection with the issuance of the Class B Preferred Units.
WORLD SHIPPING
18 March 2013 - 21:13
Greece: CPLP to Acquire Two Container Vessels
Capital Product Partners L.P. announced, on Friday, an agreement to issue 9.1 million Class B Convertible Preferred Units
WORLD SHIPPING
18 March 2013 - 21:13
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