Capital Product Partners L.P. Agrees to Issue 9.1 Million Class B Convertible
Preferred Units and Reaches Agreement to Acquire Two
5,023 TEU High Specification Container Vessels With 12 Year
Employment at $29,350 per Day
ATHENS, GREECE -- (Marketwire) -- 03/15/13 -- Capital Product
Partners L.P. (the "Partnership") (NASDAQ: CPLP) announced today an
agreement to issue 9.1 million Class B Convertible Preferred Units
("Class B Preferred Units") to funds managed by Kayne Anderson
Capital Advisors, L.P. and Oaktree Capital Management, L.P. as well
as and the Partnership's Sponsor, Capital Maritime and Trading Corp.
The Class B Preferred Units are convertible at any time into common
units of the Partnership ("Common Units") on a one-for-one basis. The
Class B Preferred Units will pay a fixed quarterly distribution of
$0.21375 per unit.
The Partnership intends to use the net proceeds from the issuance of
the Class B Preferred Units together with approximately $54 million
from its existing credit facilities and part of its cash balances for
the acquisition of two 5,023 TEU high specification container vessels
for a total consideration of $130 million. Both the M/V 'Hyundai
Premium' and M/V 'Hyundai Paramount' are 2013 built at Hyundai Heavy
Industries Co. Ltd. The vessels were originally ordered by Capital
Maritime and built to the latest fuel efficient and eco-friendly
design. Both vessels have secured a 12 year time charter employment
(+/- 60 days) to Hyundai Merchant Marine Co. Ltd. ("HMM") at a gross
rate of $29,350 per day.
"We are very pleased to have concluded this important transaction for
the Partnership, as it offers long term cash flow visibility to our
shareholders, further diversifies our revenue stream with the
addition of HMM to our charterers, and we believe, will further
underpin our existing distribution level and allow for distribution
growth ahead. In addition, we acquire two state of the art, eco type,
wide beam, fuel efficient newbuilding container vessels built in one
of the best shipyards in the world to very high specification," said
Mr. Ioannis Lazaridis, Chief Executive and Chief Financial Officer of
the Partnership's General Partner. "Importantly, we are very pleased
by the continuous support of our existing shareholders to the
We expect the transaction to complete by the end of March 2013. The
Board of Directors of the Partnership unanimously approved the terms
of this transaction following a unanimous recommendation by the
conflicts committee, which is comprised of entirely independent
directors, with respect to the vessel acquisitions.
Evercore Partners acted as exclusive placement agent in connection
with the issuance of the Class B Preferred Units.
Definitive agreements related to this transaction will be filed with
the Securities and Exchange Commission ("SEC") and available on the
SEC's website at www.sec.gov following the closing of the
Neither the Class B Preferred Units nor the Common Units into which
they are convertible have been registered under the Securities Act of
1933 (the "Securities Act"), or any state securities laws, and they
may not be offered or sold in the United States absent a registration
statement or exemption from registration. This notice is issued
pursuant to Rule 135c under the Securities Act and shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of these securities in any state in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
Conference Call and Webcast:
On Tuesday, March 19, 2013 at 10:00
a.m. Eastern Time (U.S.), the Partnership will host an interactive
conference call to discuss the transaction.
Conference Call Details:
Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-(866) 966-9439 (from the US), or +(44) 1452 555 566 (from outside
the US). Please quote "Capital Product Partners."
A replay of the conference call audio will be available by utilizing
the webcast link on the Partnership's website, at
There will also be a simultaneous live webcast over
the Internet, through the Capital Product Partners website,
www.capitalpplp.com. Participants to the live webcast should register
on the website approximately 10 minutes prior to the start of the
The statements in this press release that are not historical facts,
including our expectations regarding the transactions and their
effects on the Partnership, our annual distribution guidance,
distribution growth, the expected delivery dates and charter rates
for our purchased vessels, and our ability to pursue growth
opportunities, 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.
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:
Capital GP L.L.C.
CEO and CFO
+30 (210) 4584 950
Capital Maritime & Trading Corp.
+30 (210) 4584 950
Investor Relations / Media
Capital Link, Inc. (New York)
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