Americas News
Shipowner Calls Off $260M Refinancing Plan
Shipowner Capital Product Partners L.P. (CPLP) Thursday announced it will not go ahead with a refinancing plan announced in February.
"CPLP's pursuit of this transaction was opportunistic," said the partnership.
On February 26, CPLP had announced its intention to issue $260 million in First Priority Ship Mortgage Notes to U.S. institutional buyers.
The notes were to have a due date of 2022, but no coupon amount was disclosed.
The notes were to be co-issued by CPLP Finance Corporation, a wholly owned subsidiary of CPLP, and guaranteed on a senior secured basis by 11 vessel-owning subsidiaries of CPLP.
"The net proceeds from the issuance of the Notes, along with a proposed new $260 million senior secured credit facility, will be used to fully repay outstanding indebtedness under the credit facility agreements entered into by CPLP in 2007, 2008 and 2011 and for general corporate purposes," said the partnership in the earlier press release.
CPLP currently owns 30 vessels, including four Suezmax crude oil tankers, 18 MR product tankers, seven Post-Panamax container vessels, and a Capesize bulker, all of which are chartered out to operators.
