Capital Product Partners L.P. Reaches Conditional Agreement With Overseas Shipholding Group Inc. Regarding the Long Term

Capital Product Partners L.P. Reaches Conditional Agreement With Overseas 
Shipholding Group Inc. Regarding the Long Term Bareboat
Charters of Three Product Tanker Vessels 
ATHENS, GREECE -- (Marketwire) -- 02/28/13 --  Capital Product
Partners L.P. (the "Partnership" or "CPLP") (NASDAQ: CPLP) has
reached a conditional agreement with Overseas Shipholding Group Inc.
("OSG") and certain of OSG's subsidiaries regarding the long term
bareboat charters of three of its product tanker vessels. 
On November 14, 2012, OSG made a voluntary filing for relief under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
for the District of Delaware, and it is currently subject to
bankruptcy proceedings. CPLP had three IMO II/III Chemical/Product
tankers (M/T Alexandros II, M/T Aristotelis II and M/T Aris II, all
built in 2008 by STX Offshore & Shipbuilding Co. Ltd.) with long term
bareboat charters to subsidiaries of OSG. These bareboat charters had
scheduled terminations in February, July and September of 2018,
respectively, and had rates ($13,000 per day) that are substantially
above current market rates.  
CPLP has conditionally agreed to enter into new charters with OSG on
substantially the same terms as the prior charters but at a bareboat
rate of $6,250 per day. OSG has the option of extending the
employment of each vessel following the completion of the bareboat
charters for an additional two years on a time chartered basis at a
rate of $16,500 per day. The new charters remain subject to approval
by OSG's board of directors. As part of its bankruptcy proceedings,
OSG has also filed a motion seeking court approval of the new
charters and court approval to "reject" the existing bareboat
charters pursuant to the Bankruptcy Code. OSG's motion is scheduled
to be heard by the Bankruptcy Court on March 21, 2013. Under the
terms of the agreement between CPLP and OSG, the new charters, if
approved, will be effective retroactively as of March 1, 2013
(provided that in the case of the M/T Alexandros II, which was
delivered back to CPLP on January 22, 2013, no payment and guarantee
obligations shall arise prior to the completion of its drydock and
re-delivery to OSG, which is expected to take place between March 1
and May 15, 2013). If OSG and its subsidiaries receive court approval
to reject the existing charters, the existing charters will be deemed
"rejected" as of March 1, 2013. Rejection of each charter constitutes
a material breach of such charter, and CPLP is reserving its rights
to make claims as a result of this breach for the difference between
the reduced amount of the new charters and the amount due under each
of the existing charters. No assurance can be given that OSG's board
of directors will approve the new charters, that the Bankruptcy Court
will approve any agreement or arrangement entered into between us and
OSG, or that we will be successful in pursuing our claims in the
bankruptcy proceedings. 
About Capital Product Partners L.P. 
Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands
master limited partnership, is an international owner of a modern
tanker, container and dry bulk vessels. The Partnership currently
owns 25 vessels, including four Suezmax crude oil tankers, 18 modern
MR (Medium Range) product tankers, two post panamax container vessels
and one Capesize bulk carrier. All of its vessels are under period
charters to BP Shipping Limited, Overseas Shipholding Group,
Petrobras, A.P. Moller-Maersk A.S., Arrendadora Ocean Mexicana, S.A.
de C.V., Subtec S.A. de C.V., Cosco Bulk Carrier Co. Ltd. and Capital
Maritime & Trading Corp. 
For more information about the Partnership, please visit our website:
www.capitalpplp.com. 
CPLP-F 
Contact Details: 
Capital GP L.L.C.
Ioannis Lazaridis
CEO and CFO
+30 (210) 4584 950
E-mail: i.lazaridis@capitalpplp.com 
Capital Maritime & Trading Corp.
Jerry Kalogiratos
Finance Director
+30 (210) 4584 950
E-mail: j.kalogiratos@capitalpplp.com 
Investor Relations / Media
Matthew Abenante
Capital Link, Inc. (New York)
Tel. +1-212-661-7566
E-mail: cplp@capitallink.com 
 
 
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