Capital Product Partners’ (CPLP) wholly-owned subsidiary, CPLP Shipping Holdings, has priced its €150 mill offering of unsecured bonds in Greece.
The Bonds will be guaranteed by CPLP, will mature in 2026 and will have a coupon of 2.65%, payable semi-annually.
Trading on the Athens Exchange was due to commence on 25th October, 2021.
Net proceeds from the issue, which was reported to be heavily oversubscribed, are intended to be used to partly finance the acquisition of three X-DF LNGC sisterships, which the Partnership has the option to acquire, in connection with the acquisition of another three X-DF LNGCs.
The options are expected to be acquired at an average price of $207.7 mill per vessel with aggregate contracted revenues of about $429 mill and an average aggregate daily rate of around $70,650.
The optional vessels were built this year and were chartered to BP Gas Marketing Limited, Cheniere Marketing International and Engie Energy Marketing Singapore with a remaining charter duration of 6.3 years, which includes, in the case of the BP timecharter, the first two optional periods.
Jerry Kalogiratos, the General Partner’s CEO, 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.”
