Capital Product to Buy Tankers

Thursday, February 28, 2008
Capital Product Partners LP has signed a nonbinding letter of intent to buy two vessels from Capital Maritime & Trading Corp., for total of $118m. The deal is expected to be completed by April. The first vessel, valued at $95m, is a 2001-built, 159,982 deadweight ton double hull tanker. The vessel is chartered to BP Shipping Ltd. under a charter at a gross rate of $36,456 per day. The charter has a term through at least January 2011, and includes a profit-sharing arrangement that calls for BP and Capital Product to equally split any additional revenue. The second, worth $23 million, is a 12,000 deadweight ton double hull product tanker built in 2005. The tanker is chartered to Shell International Trading & Shipping Company Ltd. until at least March 2010, at a gross rate of $13,250 per day.

Capital Product Partners expects to fund the purchase with $2 million in available cash and $57.5 million through its new revolving $350 million credit facility. The remaining amount will be funded through an offering of 2.55 million common units to Capital Maritime at a price of $22.94 per unit. Capital Product Partners expects the two vessels to boost operating earnings by 8 cents per unit annually, excluding any profit-sharing agreements. Source: Forbes

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Amid Yemen Chaos, China Lifts More Oil

China has managed to export a large shipment of crude oil from Yemen over the weekend, ship-tracking data showed on Monday, despite mounting chaos in the country

Reopening Date of Libya Oil Ports Uncertain

It is too early to say when Libyan oil ports Es Sider and Ras Lanuf can reopen after a force loyal to a self-declared Tripoli government pulled out troops from frontlines near to the terminals,

NORDEN CEO: Bulk Market Challenges to Continue

Klaus Nyborg, interim CEO at Denmark-based dry bulk and product tanker shipping company Dampskibsselskabet NORDEN A/S, expects difficult dry cargo market conditions

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0736 sec (14 req/sec)