After revealing plans to shift its business focus towards the LNG carrier sector, Capital Product Partners L.P. (CPLP) has now entered into an agreement to acquire eleven newbuild LNG carriers for a total price of $3.1 billion.
Under the agreement, the vessels will be purchased through the acquisition of 100% of the equity interests in the applicable vessel-owning company.
The vessels purchased by Capital Product Partners are two-stroke MEGA Mark III Flex 174,000 cubic meter LNG carriers built/under construction at Hyundai Heavy Industries and Hyundai Samho Heavy Industries in South Korea.
One of the vessels is the recently delivered LNG carrier Amore Mio and CPLP intends to acquire its vessel-owning company on or about the closing date of the umbrella agreement, which is expected to occur by the end of 2023. The acquisition of this vessel was financed through a $196.3 million sale and leaseback transaction between the vessel-owning company and CMB Financial Leasing.
The remaining ten vessels are scheduled to join CPLP’s fleet between January 2024 and March 2027.
In addition, CPLP will receive funding support from Capital Maritime, including a no-fee, fully backstopped rights offering of $500 million and an unsecured non-amortizing seller’s credit of $220 million.
Following the closing of the umbrella agreement, the company plans to explore the disposal of its container vessels and abstain from acquiring additional container vessels.
Additionally, CPLP agreed to change its name to Capital New Energy Carriers L.P. to reflect its focus on LNG carriers and energy transition shipping. The change is expected to become effective by December 31, 2023.-World Maritime News
