New York-listed shipowner Capital Product Companions L.P. (CPLP) has closed the umbrella settlement from November 2023, shifting ahead with the $3.1 billion acquisition of 11 newbuild LNG service vessels.
CPLP entered into umbrella settlement with Capital Maritime & Buying and selling Corp. and Capital GP on November 13, offering for the acquisition of 11 newbuild liquefied LNG carriers.
Upon the closing of the umbrella settlement on Thursday, CPLP entered into 11 share buy agreements to accumulate 100% of the fairness pursuits in every vessel-owning firm.
Every Vessel may have a capability of 174,000 cubic meters, constructed or below development, at Hyundai Heavy Industries Co., and Hyundai Samho Heavy Industries Co. in South Korea.
In accordance with CPLP, it already closed the acquisition of the vessel-owning firm of the LNG service Amore Mio I, and brought supply of the vessel. Capital Maritime was paid the mixture acquisition worth of $141.7 million for the vessel.
CPLP stated it is going to proceed with the acquisitions of six different vessels, together with Axios II, Assos, Apostolos, Aktoras, Archimidis and Agamemnon LNG carriers, upon completion of every vessel’s development and supply from the shipbuilder.
Capital Maritime was paid a deposit within the quantity of 10% of the mixture acquisition worth of the six vessels, amounting to $174.4 million, and the rest might be paid upon supply of every vessel, totaling over $1.6 billion.
CPLP additionally closed the acquisitions of 100% of the fairness pursuits in every of the vessel-owning firms of the Alcaios I, Antaios I, Athlos and Archon ships. The Marshall Islands grasp restricted partnership paid Capital Maritime near $1.4 billion for the vessels, taking up the obligations of the respective shipbuilding contracts with Hyundai.
“We anticipate to pay an extra whole quantity of $909.9 million to Hyundai in pre-delivery and supply installments,” CPLP stated.
Pursuant to the umbrella settlement, CPLP carried out a rights providing to finance $500 million of the acquisition worth for the vessels. The rights providing resulted in subscriptions for 445,988 frequent models representing restricted partnership pursuits in CPLP supplied at an train worth of $14.25 per frequent unit.
Capital Maritime purchased 34,641,731 frequent models for an mixture quantity of $493.6 million, elevating its possession to 72.3% of the frequent models excellent.
Jerry Kalogiratos, CEO CPLP’s Basic Accomplice, stated: “We’re more than happy to see the closing of this crucial first step within the transformation of the partnership right into a one of many largest U.S. listed house owners of two stroke, newest era LNG carriers.
“Along with the opposite steps that we’ve got laid out such because the transformation of the partnership into an organization, we hope to over time appeal to extra investor curiosity and permit our fairness valuation to maneuver nearer to our friends.”
CPLP was additionally issued an unsecured vendor’s credit score by Capital Maritime in an quantity $220 million to finance a portion of the acquisition worth for the vessels. The vendor’s credit score settlement gives for curiosity at a price of seven.5% per 12 months and has a maturity date of June 30, 2027.
Following the closing of the umbrella settlement, CPLP plans to discover the disposal of its container vessels and can abstain from buying extra container vessels.
Additionally, the partnership has agreed to alter its title, setting out plans to barter the phrases for the conversion from a Marshall Islands restricted partnership to an organization with customary company governance provisions by June 21, 2024.
CPLP at the moment owns 23 vessels, together with eight newest era LNG service vessels, 12 Neo-Panamax container vessels and three Panamax container vessels. It has agreed to accumulate an extra 10 newest era LNG carriers between 2024 to 2027.
In reference to the change of enterprise focus to focus on the LNG market, Capital Maritime granted CPLP, starting on December 21, 2023, rights of first refusal over transfers of LNG vessels, alternatives to order such newbuild vessels, and employment alternatives till 2033.
Additionally, CPLP may have first refusal choice for transfers of two liquid CO2 carriers and two ammonia carriers lately ordered by Capital Maritime for a interval ending when Capital Maritime and its associates now not beneficially personal a minimum of 25% of the excellent frequent models, in addition to employment rights if CPLP acquires such vessels on comparable phrases.
