Capital Product Partners L.P., an international owner of ocean-going vessels, announced that its wholly owned subsidiary, CPLP Shipping Holdings PLC, has successfully priced its previously announced offering of €150 million of unsecured bonds (the “Bonds”) in Greece. The Bonds will be guaranteed by CPLP. The Bonds will mature in 2026 and will have a coupon of 2.65%, payable semi-annually. The offering is subject to customary closing conditions, and settlement is expected to occur on October 22, 2021. The trading of the Bonds on the Athens Exchange is expected to commence on October 25, 2021.
The net proceeds of the offering are intended to be used to partly finance the acquisition of three X-DF LNG sister vessels, which the Partnership has the option to acquire, granted in connection with the acquisition of another three X-DF LNG carriers, as announced on August 31, 2021 (the “Optional Vessels”). The Optional Vessels are expected to be acquired at an average price of $207.7 million per vessel with aggregate contracted revenues of approximately $429.0 million and an average aggregate daily rate of approximately $70,650 per day. The Optional Vessels are all built in 2021 and are chartered to BP Gas Marketing Limited (“BP”), Cheniere Marketing International LLP and Engie Energy Marketing Singapore Pte Ltd with a remaining charter duration of 6.3 years, which includes in the case of the BP time charter the first two optional periods.
Mr. Jerry Kalogiratos, Chief Executive Officer of our General Partner, commented:
“We are pleased to announce the closing of our first shipping bond on the Athens Exchange. The successful bond issue further diversifies our Company’s sources of financing and allows us to execute on our business plan with an attractive overall cost of capital. The bond was issued at the low end of the yield range based on exceptionally high demand.”
The Bonds have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any U.S. state or other jurisdiction other than Greece and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. In addition, this announcement is not intended as and shall not constitute a public offer or advertisement of securities in Greece or an invitation to make offers to purchase any securities in any EEA Member State within the meaning of Art. 2(d) or 2(k) of the Prospectus Regulation, respectively.