Capital Product Partners L.P. Announces the Successful Refinancing of Three 9,000 TEU Container Vessels Generating $38.8 Million of Additional Liquidity

Rhea-AI Summary

Capital Product Partners L.P. (CPLP) announced the successful refinancing of three 9,000 TEU container vessels, generating $38.8 million in additional liquidity. The refinancing with ICBC Financial Leasing totals $155.4 million, allowing the Partnership to improve its debt terms, with annual amortization reduced from $30.8 million to $27.4 million. The lease has a 7-year duration and includes mandatory repurchase obligations at $77.7 million for the three vessels upon expiration.

Positive

• Generated $38.8 million in additional liquidity through refinancing.
• Reduced annual debt amortization from $30.8 million to $27.4 million.
• Secured a lower margin lease compared to previous credit facility.

Negative

• None.

ATHENS, Greece, May 27, 2020 (GLOBE NEWSWIRE) -- Capital Product Partners L.P. (the “Partnership,” “CPLP” or “we” / “us”) (NASDAQ: CPLP), an international owner of ocean-going vessels, today announced the successful closing of the refinancing of its three 9,000 TEU container vessels.

The Partnership today completed the previously announced refinancing with ICBC Financial Leasing Co., Ltd. (“ICBCFL”) for the sale and lease back of three vessels previously 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 repayment amount under the 2017 credit facility was $116.5 million and as a result the refinancing has generated an additional $38.8 million of liquidity (before debt issuance costs) for the Partnership. The lease has a duration of 7 years and includes mandatory purchase obligations for the Partnership to repurchase the vessels on expiration at the predetermined price of $77.7 million in total. Total debt amortization after the partial refinancing under the ICBCFL lease and the 2017 credit facility will amount to $27.4 million per year compared to $30.8 million previously paid under the 2017 credit facility, while the lease bears a lower margin compared to the 2017 credit facility.

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 14 vessels, including thirteen Neo-Panamax container vessels and one capesize bulk carrier.

For more information about the Partnership, please visit www.capitalpplp.com  

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.

FAQ

What is the recent financial development for CPLP?

CPLP successfully refinanced three vessels, gaining $38.8 million in liquidity.

How much is the total refinancing amount for CPLP's vessels?

The total refinancing amount is $155.4 million.

What are the terms of the lease agreement for CPLP?

The lease lasts 7 years with mandatory purchase obligations totaling $77.7 million.

How has CPLP's annual debt amortization changed?

Annual debt amortization decreased from $30.8 million to $27.4 million.