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Capital Product Partners L.P. Announces the Acquisition of Three Latest Generation LNG Carriers
Transaction illustrates the continued transition of CPLP to a growth-oriented Partnership with assets in the most attractive seaborne transportation
About this update from Capital Clean Energy Carriers Corp.
[{"type":"text","content":"Transaction illustrates the continued transition of CPLP to a growth-oriented Partnership with assets in the most attractive seaborne transportation sectorsTransaction highly accretive across multiple financial and qualitative metricsPartnership has option to purchase three additional Liquefied Natural Gas Carriers (“LNG/C”) Important step towards reducing the environmental footprint of the Partnership and being part of the transition to carbon neutral shipping. ATHENS, Greece, Aug. 31, 2021 (GLOBE NEWSWIRE) -- Capital Product Partners L.P. (the “Partnership,” “CPLP” or “we” / “us”) (NASDAQ: CPLP), an international owner of ocean-going vessels, today announced that it has agreed to acquire three 174,000 cubic meter (“cbm”) latest generation X-DF LNG carriers from CGC Operating Corp. (the “Seller”), for total consideration of $599.5 million comprised of (i) $147.1 million of cash on hand, (ii) the assumption of the $427.4 million of secured debt, (iii) the issuance of $15.0 million of new common units of CPLP at a premium to the current trading unit price and (iv) $10.0 million of unsecured, interest free seller financing. The three vessels are the LNG/C Aristos I built in 2020, and the LNG/C Aristarchos and the LNG/C Aristidis I built in 2021, all three constructed at Hyundai Heavy Industries Co., Ltd (“Hyundai”). The LNG/C Aristos I and the LNG/C Aristarchos are expected to be delivered to the Partnership by September 15, while the LNG/C Aristidis I is expected to be delivered by the end of November 2021. The LNG/C Aristos I and the LNG/C Aristidis I are under long-term time charters with BP Gas Marketing Limited (“BP”), which together with the first two optional periods, expire in October 2027 and December 2027, respectively. In view of the structure of the BP charters, we believe that the first two optional periods are highly likely to be exercised under most market conditions. BP holds additional options, which could extend the charter of the vessels to October 2032 and December 2032, respectively. The LNG/C Aristarchos is under a long-term time charter with Cheniere Marketing International LLP (“Cheniere”), which expires in February 2025. Cheniere holds two 1-year options beyond that. The total contracted revenue for all three vessels under the charters is approximately $391.0 million, the average remaining charter duration...