Greece-based shipowner Capital Product Partners L.P. (CPLP) has decided to acquire three 5,100 TEU sister container vessels from Capital Maritime & Trading Corp. The vessels, M/V Seattle Express, M/V Long Beach Express and M/V Fos Express, were all built at Hanjin Heavy Industries shipyard in South Korea in 2008.
They are employed under five-year charters to Hapag-Lloyd at a gross charter rate of $12,300 per day and will be delivered to CPLP with their special surveys passed and fitted with ballast water treatment and alternative maritime power (AMP) systems.
The transaction has been valued at $40.5 million.
As explained, CPLP will partly fund the acquisition of the three vessels by entering into a sale and lease back transaction with CMB Financial Leasing Co., Ltd, (CMBFL) for an amount of $30 million. The lease has a duration of five years.
Furthermore, CPLP entered into a sellers’ credit agreement with Capital Maritime to defer $6 million of the purchase price for up to five years from the delivery of the vessels.
“We are pleased to announce the addition of three Panamax container vessels to our fleet, as we continue to execute our business plan of growing the Partnership through accretive acquisitions with long term cash flow visibility,” Jerry Kalogiratos, Chief Executive Officer of CPLP’s General Partner, commented.
“This transaction will be completed with a minimal cash outlay from the Partnership in view of the advantageous debt and Sellers’ Credit arrangements we have obtained. The low acquisition price, the five year charter in place to a reputable charterer, as well as the high residual value of these vessels imply very favorable returns on equity deployed.”
CPLP reports profitable Q4 2020, announces $30M unit repurchase program
The latest acquisition was unveiled in the company’s Q4 2020 financial report showing that CPLP recorded a 26 per cent increase in net income from continuing operations. Specifically, net income from continuing operations for the quarter ended 31 December 2020, was $7.3 million, compared with net income from continuing operations of $5.8 million for the fourth quarter of 2019.
What is more, total revenue was $35.1 million for Q4, compared to $27.7 million during Q4 2019. According to the company, the increase in revenue was primarily attributable to the increase in the size of the fleet following the acquisition of three 10,000 TEU containerships in January 2020.
Source: World Maritime News
