Capital Product Partners L.P. Announces the Sale of Three 10,000 TEU Container Vessels

Rhea-AI Summary

Capital Product Partners L.P. (CPLP) announces the sale of three container vessels as part of its strategic shift towards LNG carriers and energy transition shipping. The sale of seven container vessels is expected to generate approximately $182.5 million after debt repayment.

Market Research Analyst

The divestment of container vessels by Capital Product Partners L.P. signals a strategic shift towards specializing in LNG carriers, which aligns with broader industry trends focusing on energy transition. This move can potentially open up new revenue streams and partnerships in the energy sector, which is increasingly seeking more environmentally friendly shipping options.

Analyzing the financial implications, the sale of these assets is expected to generate substantial cash proceeds, enhancing the company's liquidity. This liquidity could be directed towards the acquisition of new LNG carriers or for deleveraging, which would improve the balance sheet and potentially increase the attractiveness of CPLP to investors.

However, this strategy is not without risks. A specialized fleet may limit the company's ability to diversify risk across different shipping markets. Investors should monitor the global LNG market dynamics, including supply and demand fluctuations, as they will directly impact CPLP's future performance.

Financial Analyst

The estimated gross cash proceeds of $272.5 million from the sale of seven container vessels represent a significant capital inflow for CPLP. After debt repayment, the net proceeds amount to $182.5 million, which could potentially be used to strengthen the company's financial position or reinvest in its core business of LNG carriers.

From a financial perspective, the debt repayment is a positive step towards reducing leverage, which may result in lower interest expenses and a stronger credit profile. Stakeholders should consider how this improved financial standing could impact the company's cost of capital and future investment opportunities.

It's important to note that the sale proceeds and debt figures should be evaluated against the book value of the sold assets to assess the impact on CPLP's earnings and potential write-downs or gains on sale. These financial metrics are important for investors to understand the transaction's effect on the company's profitability.

ATHENS, Greece, March 20, 2024 (GLOBE NEWSWIRE) -- Capital Product Partners L.P. (NASDAQ: CPLP), an international owner of ocean-going vessels, today announced that the Partnership entered into a memorandum of agreement for the sale of three 10,000 TEU container vessels, built in 2011 at Samsung Heavy Industries, S. Korea: the M/V Athos, the M/V Aristomenis and the M/V Athenian. Delivery of the vessels to the buyer is expected in April 2024.

On November 13, 2023, as part of the transformative acquisition of 11 newbuild LNG carriers for $3.1 billion, the Partnership announced its focus on LNG carriers and energy transition shipping, and its intention to divest from non-core container vessels. With the recently completed sale of the M/V Akadimos (115,534 DWT / 9,300 TEU, Eco-Flex, Wide Beam container vessel, built 2015, Daewoo-Mangalia Heavy Industries S.Α., Romania), which was delivered to its new owners on March 8, 2024, the Partnership has completed the sale of two container vessels and has agreed to sell two Panamax container vessels and three Neo-Panamax container vessels. Total expected gross cash proceeds from the sale of the seven container vessels are estimated at approximately $272.5 million or $182.5m after repaying outstanding debt.

About Capital Product Partners L.P.
Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands limited partnership, is an international owner of ocean-going vessels. CPLP currently owns 22 high specification vessels, including nine latest generation LNG/Cs, 11 Neo-Panamax container vessels and two Panamax container vessels. CPLP has agreed to sell two Panamax container vessels and three Neo-Panamax container vessels by the second quarter of 2024. In addition, CPLP has agreed to acquire nine additional latest generation LNG/Cs delivering between the second quarter of 2024 and the first quarter of 2027.

For more information about the Partnership, please visit: 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.
Jerry Kalogiratos
CEO
Tel. +30 (210) 4584 950
E-mail: j.kalogiratos@capitalpplp.com

Capital GP L.L.C.
Nikos Kalapotharakos
CFO
Tel. +30 (210) 4584 950
E-mail: n.kalapotharakos@capitalmaritime.com

Investor Relations / Media
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. +1-212-661-7566
E-mail : cplp@capitallink.com
Source: Capital Product Partners L.P.

What vessels did Capital Product Partners L.P. announce the sale of?

Capital Product Partners L.P. announced the sale of three 10,000 TEU container vessels: the M/V Athos, the M/V Aristomenis, and the M/V Athenian.

When is the expected delivery of the vessels to the buyer?

The delivery of the vessels to the buyer is expected in April 2024.

What was the focus of the Partnership's transformative acquisition on November 13, 2023?

The focus of the transformative acquisition on November 13, 2023, was on 11 newbuild LNG carriers for $3.1 billion and energy transition shipping.

How much are the total expected gross cash proceeds from the sale of the seven container vessels?

The total expected gross cash proceeds from the sale of the seven container vessels are estimated at approximately $272.5 million or $182.5 million after repaying outstanding debt.