Capital Product has bank financing in place for carrier acquisitions

Chicago, Sept. 9 – Capital Product Partners LP needed to take on $427.4 million of secured debt for its recent acquisition of three latest-generation LNG carriers, according to a press release.

Two of the carriers are subject to debt of $148.9 million and $155.5 million, structured as sale and lease transactions with Bank of Communications Financial Leasing Co. Ltd.

The third carrier is subject to a term loan with a syndicate of banks led by ING Bank NV which will have an outstanding principal amount of $123 million in November when the vessel is expected for delivery.

Quarterly principal payments on the sale leaseback transactions will be for $3.2 million and $3.1 million, and then decreasing in two years for the first carrier to $2.4 million and after three years to $2.3 million for the second.

At the respective maturity points in October 2027 and May 2028, there is a purchase obligation of $83.4 million for the Aristos I and $83.5 million for the Aristarchos.

Interest on the sale-leaseback transactions is at Libor plus 270 basis points.

The third carrier loan, covered by the ING facility, has a Libor plus 250 bps interest rate.

Quarterly interest repayments of $2.4 million are required through the fourth quarter of 2023, and then decrease to $1.7 million. A balloon payment of $74.1 million is payable in the final quarterly installment in December 2027.

Capital Product is an Athens, Greece-based tanker company that transports crude oil and refined petroleum products, edible oils and soft chemicals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.