• Home
  • News
  • Capital Product Partners L.P. announces the acquisition of three 10,000 TEU container vessels and partial refinancing of its 2017 credit facility
  • 2019 December 19 12:19

    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. 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 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.

    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.

    About Capital Product Partners L.P.

    Capital Product Partners L.P., 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.

2022 July 1

18:21 “K” Line has enhanced the shipboard cyber security with surveillance of ship’s communication 24/7
17:57 IAA PortNews’ summary of previous week news
17:34 INPEX, IHI, MOL demonstrate clean ammonia supply chain linking UAE and Japan
17:18 Stolt-Nielsen Limited reports unaudited results for the 2Q and 1H, 2022
17:00 Emperium launches electric catamaran Ecohod
16:44 R-FLOT lays down two small cruise ships
16:23 Austal USA awarded up to US$3.3 bn contract for 11 USCG offshore patrol cutters
16:07 Freeport LNG says it may resume partial liquefication operations in early Oct 2022
15:47 TotalEnergies Marine Fuels and MOL Group complete first biofuel bunker operation of a vehicle carrier in Singapore
15:28 State Duma approves bill on increasing fines for violation of coal handling regulations
15:10 DEME Group lists on Euronext Brussels
14:49 CPC Marine Terminal operates two of its three Single Point Moorings
14:27 CPC Terminal paid over RUB 5.28 billion for recovery of damage caused by oil spill
14:27 PM Fumio Kishida says Sakhalin 2’s new operator will not cause an immediate halt in LNG shipments to Japan
14:05 Spartacus nominated for KNVTS Ship of the Year
13:42 2 MOL-operated vessels earn 2021 'Best Quality Ship Awards'
13:20 Port of Houston container activity rises 20% in May 2022
13:03 Petersburg Oil Terminal confirms its ISO compliance
12:44 Monthly LNG imports from USA to EU in June for the first time exceeded gas supplied via pipeline from Russia – IEA
12:40 Solstad Offshore announces contract awards for two CSVs
12:25 Russian Railways' network loading fell by 2.8% in HI’2022
12:10 Maersk Tankers launches a new digital solution to track and report vessel emissions
12:00 Hiab launches next generation LOGLIFT forestry cranes
11:42 RF Government to establish new operator of Sakhalin Energy
11:30 Port of Rotterdam Authority abandons Normal Amsterdam Water Level after 200 years
11:18 Prelude FLNG cancels cargo deliveries amid union strike - Natural Gas Intelligence
11:01 INPEX, IHI, MOL demonstrate clean ammonia supply chain linking UAE and Japan
10:33 Maersk to reduce transit times by 5 -21 days from Asia to Northern Italy
10:21 Rosatom issued first five permits for navigation in NSR waters within summer-autumn season of 2022
10:15 The Twin-Port V project of the ports of Helsinki and Tallinn receives a total of EUR 6.8 million in EU funding
10:09 GTT signs a major contract for its "smart shipping" solution with an important player in liquefied gas shipping
09:52 Ports of Stockholm and CMB.TECH join forces in a hydrogen collaboration at Stockholm Norvik Port
09:16 Crude oil futures decrease in response to OPEC+ decisions
09:05 MABUX: Firm downward trend to continue in Global bunker market on July 01
08:32 Boskalis and Keppel sell their harbor towage activities in Singapore and Malaysia to Rimorchiatori Mediterranei
08:07 CMA CGM and ENGIE set to co-invest in the Salamander project, to produce second-generation biomethane
07:51 Industry-leading digital services rolled out at APM Terminals Valencia

2022 June 30

18:41 Ocean Yield agrees to purchase two 36,000 cbm liquified ethylene gas carrier newbuildings
18:12 Aker Solutions wins 5-year partnership agreement with Vår Energi
18:07 The icebreaking season 2021–2022 was exceptionally long - Finnish Transport Infrastructure Agency
17:47 The Signal Group launches a tech enabled bunker procurement company
17:34 2,8 million euro worth of EU funding to the Port of Tallinn
17:02 The Suez Canal Economic Zone hosts a round table discussion in coordination with the European Bank for Reconstruction and Development
16:47 Rosmorrechflot estimated excess of Caspian Basin seaports’ capacity at 12 million tonnes per year
16:35 Second Great Lakes Dredge & Dock Company trailing suction hopper dredge to be built to ABS Class at Conrad Shipyard
15:30 RF Government to subsidize banks’ interest rates on loans provided for construction of new transport and logistics centers
15:02 Schedule reliability remains between 30% and 40% - Sea-Intelligence
14:44 Khabarovsk Shipyard lays down non-self-propelled dredger of Project 4395
14:23 Ocean Yield AS announces delivery of newbuilding Suezmax tanker with 10-year charter
13:49 MABUX: Bunker Weekly Outlook, Week 26, 2022
13:32 Shipping companies and Customs authorities come together to step up the fight against narcotics trafficking
13:02 NYK becomes signatory to UN’s Sustainable Ocean Principles
12:42 DP World and NIIF announce broadening of partnership in India
12:12 MacGregor signs a five-year service agreement with Color Line
11:52 TGE Marine announces contract for two CO2 carriers
11:35 Shell to sign deal with Qatar for large LNG project - Bloomberg
11:17 Throughput of Russian seaports in H1’22 is flat, y-o-y, at 412.1 million tonnes
11:13 Shell and CMA CGM sign LNG fuel supply agreement in Singapore
10:38 G7 reaffirms the commitment to phase out the dependency on Russian energy
10:34 Northern Shipping Company’s MV Kholmogory delivered first batch of cargo to Kaliningrad