Capital Product Partners L.P. Announces Acquisition of Aframax M/T ‘Aristaios’ with Four Year Remaining Time Charter Atta...
January 11 2018 - 3:05PM
Capital Product Partners L.P. (NASDAQ:CPLP) (“CPLP” or the
“Partnership”) today announced that its Board of Directors has
approved the acquisition of the eco-type crude tanker ‘Aristaios’
(112,800 dwt, Ice Class 1C, built 2017, Daehan Shipbuilding Co.
Ltd., S. Korea) for a total consideration of $52.5 million from the
Partnership’s sponsor, Capital Maritime & Trading Corp.
(‘Capital Maritime’). The M/T ‘Aristaios’ is currently employed
under a time charter to Tesoro Far East Maritime Company (‘Tesoro’)
at a gross daily rate of $26,400. The Tesoro charter commenced in
January 2017 with duration of five years +/- 45 days. The
Partnership intends to fund the acquisition through available cash
in the amount of $24.2 million and the assumption of a $28.3
million term loan under a credit facility previously arranged by
Capital Maritime with Credit Agricole Corporate and Investment Bank
and ING Bank NV, as mandated lead arrangers and book-runners. The
term loan bears interest at LIBOR plus a margin of 2.85% and is
payable in twelve consecutive semi-annual installments of
approximately $1.0 million beginning in July 2018, plus a balloon
payment payable together with the last semi-annual installment due
in January 2024. The term loan is subject to ship finance covenants
similar to the covenants applicable under our existing facilities.
We expect the transaction to be consummated before January 31,
2018.
The purchase of the M/T ‘Aristaios’ was entered
into on an arm’s length basis and was reviewed and unanimously
approved by the conflicts committee of our Board of Directors and
our entire Board of Directors.
About Capital Product Partners
L.P.
Capital Product Partners L.P. (NASDAQ:CPLP), a
Marshall Islands master limited partnership, is an international
owner of tanker, container and drybulk vessels. The Partnership
currently owns 36 vessels, including twenty-one modern MR (Medium
Range) product tankers, four Suezmax crude oil tankers, ten Neo
Panamax container vessels and one Capesize bulk carrier. Its
vessels trade predominantly under period charters to CMA-CGM S.A.,
Cosco Bulk Carrier Co. Ltd., CSSA S.A. (Total S.A.), Empresa
Publica Flota Petrolera Ecuatoriana EP Flopec, Hyundai Merchant
Marine Co. Ltd., International Seaways, Inc., Pacific International
Lines (Pte) Ltd., Petróleo Brasileiro S.A., Repsol Trading S.A.,
and Capital Maritime & Trading Corp.
For more information about the Partnership,
please visit our website: www.capitalpplp.com.
Forward-Looking Statements
The statements in this press release that are
not historical facts may be forward-looking statements (as such
term is defined in Section 21E of the Securities Exchange Act of
1934, as amended). These forward-looking statements involve risks
and uncertainties that could cause the stated or forecasted results
to be materially different from those anticipated. Unless required
by law, we expressly disclaim any obligation to update or revise
any of these forward-looking statements, whether because of future
events, new information, a change in our views or expectations, to
conform them to actual results or otherwise. We assume no
responsibility for the accuracy and completeness of the
forward-looking statements. We make no prediction or statement
about the performance of our common units.
CPLP-F
Contact Details:
Capital GP L.L.C.Gerasimos (Jerry)
KalogiratosCEO and CFOTel: +30 (210) 4584 950E-mail:
j.kalogiratos@capitalpplp.com
Investor Relations / MediaNicolas
BornozisCapital Link, Inc. (New York)Tel. +1-212-661-7566E-mail:
cplp@capitallink.com
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