Capital Product Partners launches new share offer.
CAPITAL Product Partners is to launch a new share offering to fund the acquisition of an additional tanker from its sponsor, Capital Maritime & Trading.
The Nasdaq-listed partnership plans to offer 5.8m common units with an over-allotment option to underwriters of a further 870,000 units.
Subject to successful completion, the proceeds will be put towards the $43m purchase of the 47,786 dwt Atrotos.
The 2007-built vessel is one of four chemical-product tankers in the fleet of Greece-based Capital Maritime, which has a 46.6% stake in the publicly listed company, which are covered by an omnibus agreement granting the Nasdaq-listed company first chance at any of Capital"s medium-range tankers under charter for two or more years.
The acquisition was approved by the partnership"s board after the unanimous recommendation of its conflicts committee composed of independent directors, the company said.
The ice-class tanker is renamed El Pipila for Mexican state oil company Pemex which has chartered it until March 2014 at a base charter rate of $19,900 per day.
Operating expenses have been fixed for the duration of the charter at a daily rate of $3,575.
Last April, Atrotos was one of two MRs facing early charter expiries that were swapped out of Capital Product, which received in return two slightly larger and younger units that had three-year time charters to BP.
Now it has the chance to regain the tanker with an attractive time charter attached, the public company appears to be a clear beneficiary of the shuffle.
Capital Product has appointed UBS Investment Bank and Citi as joint book-running managers for the offering. The senior manager is Barclays Capital and the co-managers are Oppenheimer and Stifel Nicolaus.
The Capital Product fleet consists of 17 product tankers, all built since 2005, and a 2001-built suezmax crude oil tanker.