• 2019 December 21 14:08

    Capital Product Partners L.P. announces the acquisition of three 10,000 TEU container vessels and partial refinancing of its 2017 credit facility

    Capital Product Partners L.P. (the “Partnership”) (NASDAQ: CPLP) announced that it agreed to acquire three 10,000 TEU sister container vessels, namely the M/V Athos, the M/V Aristomenis and the M/V Athenian built in 2011 at Samsung Heavy Industries S. Korea, for a total consideration of $162.6 million from Capital Maritime & Trading Corp. The vessels are under long-term time charters with Hapag-Lloyd which will expire in April 2024. The gross charter rate for each vessel currently amounts to $27,000 per day, increasing to $28,000 per day for the M/V Aristomenis from October 2020, and from July 2021 onwards for the M/V Athos and the M/V Athenian. The time charters include two one-year options at $32,500 and $33,500 gross per day, respectively.

    The Partnership intends to fund the acquisition of the three vessels with approximately $47.1 million cash at hand and two financing arrangements: the M/V Aristomenis and M/V Athos will be financed through a sale and lease back transaction, entered into with CMB Financial Leasing Co., Ltd, (“CMBFL”) for an amount of up to $38.5 million each (The “CMBFL facility”), while the M/V Athenian will be financed through a term loan entered into with Hamburg Commercial Bank A.G. for an amount of up to $38.5 million (the “HCOB facility”).

    Quarterly principal repayments under the CMBFL lease amount to $0.8 million for each vessel. The lease has a duration of five years and includes a purchase option for the Partnership to acquire each vessel on expiration of the lease at the predetermined price of $22.5 million or pay the amount of $7.5 million to CMBFL, if the option is not exercised. In addition, the Partnership has various purchase options commencing from the first year anniversary of the lease.

    The HCOB facility bears interest at LIBOR plus a margin of 2.55% and is payable in twenty consecutive equal quarterly installments of $0.86 million plus a balloon payment of $21.3 million payable together with the final quarterly installment.

    Both the HCOB facility and the CMBFL lease are subject to customary closing conditions.

    The average fleet age of the Partnership following the transaction will be 7.7 years and the average remaining charter duration will stand at 4.6 years.

    The acquisition was entered into on an arm’s length basis and was reviewed and unanimously approved by the conflicts committee of the Board of Directors (“Committee”) and the entire Board of Directors. Raymond James & Associates, Inc. served as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisors to the Committee.

    Partial refinancing of the 2017 credit facility

    The Partnership has entered into a term sheet with ICBC Financial Leasing Co., Ltd. (“ICBCFL”) for the sale and lease back of three vessels currently mortgaged under our 2017 credit facility, namely the CMA CGM Amazon, the CMA CGM Uruguay and the CMA CGM Magdalena, for a total amount of $155.4 million. The estimated repayment amount required to release these three vessels currently under the 2017 credit facility (based on the principal amount outstanding and vessel charter free fair market values as of September 30, 2019) is $134.9 million. Principal repayments under the ICBCFL lease, amount to $2.8 million per quarter. The lease has a duration of 7 years after drawdown and includes mandatory purchase obligations for the Partnership to repurchase the vessels on expiration at the predetermined price of $77.7 million in total. In addition, the Partnership has various purchase options commencing from the first year of the lease. The ICBFL lease is subject to customary closing conditions.

    Total debt amortization after the partial refinancing under the ICBCFL lease and the 2017 credit facility will amount to $26.5 million per year compared to $30.8 million annual debt amortization currently paid under the 2017 credit facility. Furthermore, the partial refinancing is expected to generate approximately $20.5 million of additional liquidity for the Partnership based on the principal amount outstanding under our 2017 credit facility and vessel charter free fair market values as of September 30, 2019:

    The table below summarizes the Partnership’s long term debt and lease liabilities following the aforementioned transactions based on the principal amount outstanding under our 2017 credit facility and vessel charter free fair market values as of September 30, 2019:

    Mr. Jerry Kalogiratos, Chief Executive Officer of the Partnership's General Partner, commented:

    “We are very pleased to announce today two important transactions for the Partnership. The acquisition of the three 10,000 TEU container vessels substantially increases our distributable cash flow per unit, while maintaining cash flow visibility as the vessels’ charters run into 2024. At the same time, we are increasing the size of our fleet by approximately 30%, further expanding into the attractive Neo-Panamax container segment and diversifying our customer base with the addition of Hapag Lloyd.”

    “Furthermore, the partial refinancing of our 2017 credit facility is expected to lower the overall debt amortization schedule of the Partnership by $4.3 million per year, as well as the weighted average interest margin, while also generating additional liquidity for the Partnership that can potentially fuel further growth.”

    About Capital Product Partners L.P.

    Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands master limited partnership, is an international owner of ocean-going vessels. CPLP currently owns 11 vessels (14, following the acquisition described in this release), including ten (13, following the acquisition described in this release) Neo-Panamax container vessels and one Capesize bulk carrier.




2020 October 19

18:11 CMA CGM to launch the East Med - Black Sea Express
18:01 Taganrog coastal station of NAVTEX service obtains certificate of conformity
17:48 BPA to host 5G workshop
17:27 FESCO to supply India's research stations in Antarctica for the third year in a row
17:06 Valenciaport registers the record with 477,194 containers handled in September 2020
16:46 4th “LNG Fleet, LNG Bunkering and Alternatives” conference to be held online on 28 October 2020
16:05 Milaha obtains “ISO 27001” certification for Information Security Management System
15:49 Rosmorport's sailing ship “Mir” to sail around the world in 2022-2023
15:12 Mitsubishi Shipbuilding receives approval in principle for LNG fuel gas supply system from Bureau Veritas
15:04 A.P. Moller - Maersk integrates the European customs services specialist KGH Customs Services
14:35 Harvey Gulf orders Wärtsilä Energy Storage for another four LNG-powered Supply Vessels
14:30 Average spot market price for Russian M100 product rose to RUB 11,894 pmt
14:11 GTT announces the acquisition of Areva H2Gen
13:58 Project on construction of fish terminal “Udarnik” registered as second resident of Arctic Capital PDA
13:17 Ukraine's January-September 2020 coal imports down 15%
13:11 ZIM and Alibaba.com sign strategic cooperation agreement
12:52 Port of Riga sets itself new goal to become region's leader in grain handling
12:33 TransContainer increased container transportation volumes by 15.1% YoY
12:04 Port of Oakland names Acting Communications Director
11:47 Blagoverf shipyard lays down buoy tender of project 3052 for Rechvodput
11:06 EPS collaborates with GoodFuels for marine biofuel bunker trial
10:42 Ocean Yield ASA acquires two suezmax newbuildings with long-term charters
10:40 First sections for ice-resistant platform LSP “A” shipped to outfitting yard
09:58 North Carolina Ports awarded $16 million grant for infrastructure improvements
09:39 MABUX: Bunker market this morning, October 19
09:25 Week beginning is marked by oil prices decrease
09:12 Baltic Dry Index as of October 16

2020 October 18

16:05 Inmarsat and Cobham SATCOM enable Maldives fisheries sustainability with Fleet One
15:58 JAXPORT now offers expanded service to the West Coast of South America through ONE
14:11 Nordic American Tankers says full financing of Suezmax duo is in place
13:14 Bright outlook at Gibdock as bookings remain solid
12:27 Supply contracts signed for main equipment for Squadron 2020 project
11:09 Port of Gdansk inks LoI with Ukrainian Sea Ports Authority

2020 October 17

12:54 CMA CGM announces FAK rates from West Med, Adriatic, Black Sea & East Med to Far East
11:51 CMA CGM extends PSS from Asia to North Europe
10:42 THE Alliance announces updated service adjustments for November 2020
09:34 The largest LNG-powered container ship ever built features Wärtsilä solutions
08:37 CMA CGM and MSC share information through the blockchain-based data platform TradeLens

2020 October 16

18:43 Taiwanese dredging project awarded to Van Oord
18:33 Yair Seroussi appointed as ZIM’s Chairman of the Board of Directors
18:00 Сargo turnover of DeloPorts terminals in 9M'2020 increased by 40% YoY
17:36 Krylov Center scientists developed 6.5 MW electric propulsion/steering unit
15:59 Throughput of Kaliningrad port in 9M’2020 fell by 6% Y-o-Y
15:01 CMA CGM announces FAK rates from the Middle East Gulf to North Europe and the Mediterranean
14:37 Throughput of port Vyborg in 9M’2020 fell by 46% Y-o-Y
14:14 Scorpio Bulkers announces the sale of an Ultramax vessel
13:55 Oboronlogistics completes summer navigation 2020 with cargo delivery to Tiksi
13:13 CMA CGM announces FAK rates from North Europe to Gulf and Red Sea
12:51 Throughput of port Vysotsk in 9M’2020 fell by 6% Y-o-Y
12:49 Damen hands over MV Swift to Windermere Lake Cruises
12:34 Throughput of Ust-Luga port in 9M’2020 decreased by 1% Y-o-Y
12:12 CMA CGM to launch BRAZEX 2 service, a new milestone for CMA CGM in Latin America
12:06 Belgian and Dutch inland ports plan to establish a single shore-based power system
11:51 Bunker prices started decreasing in the Port of Saint-Petersburg, Russia (graph)
11:33 Throughput of Port St. Petersburg fell by 2% in 9M’2020
11:12 PrimeServ upgrade delivers massive emission and fuel savings to Norwegian trawler
10:58 Global Ports' 9M 2020 consolidated marine container throughput increased by 7.1%
10:14 Container throughput of Hong Kong port (China) in 9M’2020 fell by 3.2%
09:53 MABUX: Bunker market this morning, Oct.16
09:36 Throughput of Chinese sea and river ports in 9M’2020 climbed by 3% YoY