Capital Product Companions L.P. (CPLP) has entered into an umbrella settlement with Capital Maritime & Buying and selling Corp. and Capital GP L.L.C. (the final associate) offering for the acquisition of the next 11 newbuild LNG carriers from Capital Maritime for a complete acquisition worth of US$3.13 million.
The vessels shall be bought by means of the acquisition of 100% of the fairness pursuits within the relevant vessel-owning firm. The LNG service Amore Mio I has been delivered in October 2023, and the corporate expects to accumulate its vessel-owning firm on or concerning the time limit of the umbrella settlement.
Jerry Kalogiratos, CEO of our Capital GP, commented: “We’re more than happy to announce this transformative transaction for the Partnership, which we anticipate to usher Capital Product Companions L.P. to a brand new chapter in its life as a public listed entity. Upon completion of the 11 LNG service fleet acquisition, we anticipate CPLP to remodel, into one of many largest US listed transport firms when it comes to enterprise worth and the most important proprietor of two stroke, newest technology LNG carriers in comparison with the present fleet of its US listed friends. The dedication to alter the identify of the partnership to ‘Capital New Vitality Carriers L.P.’ and to progressively divest our container vessels, displays our renewed enterprise deal with LNG and power transition transport. We’re nicely positioned to reap the benefits of the robust fundamentals of the LNG trade with six open LNG carriers delivering between 2026 – 2027 and rights of first refusal on a novel fleet of LCO2 and ammonia carriers. We imagine that this transaction, along with our acknowledged intention to transform the partnership into an organization and to evaluation over time our capital allocation coverage, ought to entice extra investor curiosity and permit our fairness valuation to maneuver nearer to our friends.”
“Importantly, the acquisition of the 11 LNG carriers is anticipated to be transformative throughout all monetary and qualitative metrics for the partnership, as we anticipate our contracted revenues to extend by 87% to US$3.1 billion, our income weighted constitution period to 7.2 years as of the time limit and the typical age of our LNG fleet to lower to three.2 years by the point all LNG carriers have been delivered in 2027.”
“Lastly, I’m happy to see our largest unitholder and sponsor, Capital Maritime, absolutely backstop at no extra price and at a 9.6% premium to the final closing worth a US$500 million rights providing and supply an attractively priced US$220 million vendor’s credit score to partially finance this transaction, whereas giving a proper of first refusal on all LNG enterprise and its New Vitality newbuilding vessels to CPLP. We imagine that the rights providing with the Capital Maritime backstop will enable for all our unitholders to take part with out execution threat within the transition of CPLP to an LNG and power transition centered company, which we hope to develop into a bell climate for the trade.”
Learn the article on-line at: https://www.lngindustry.com/lng-shipping/15112023/capital-product-partners-acquires-11-newbuild-lng-carriers/