Greece’s Capital Products refinances via $460 million loans due 2023 at 325 bps spread

By Susanna Moon

Chicago, Oct. 27 – Capital Product Partners LP said it refinanced four of its credit facilities with a $460 million facility due 2023 consisting of a $259 million tranche A and $201 million tranche B.

Interest on the loans is Libor plus 325 basis points.

The new facility covenants are substantially similar to those of the refinanced loans, according to a company news release.

The tranche A loan is secured by 11 vessels with an average age of 3.2 years and must be repaid in 24 equal quarterly installments of $4.8 million, in addition to a balloon payment of $143 million which is due with the final quarterly installment in the fourth quarter of 2023.

The tranche B loan is secured by 24 vessels with an average age of 10.6 years and must be repaid fully in 24 equal quarterly installments of $8.4 million with the final payment due in the fourth quarter of 2023.

The company entered into a loan agreement on Sept. 6 for a $460 million senior secured term loan facility led by HSH Nordbank AG and ING Bank NV with BNP Paribas and National Bank of Greece SA as arrangers.

Capital repaid $14 million outstanding under its facility on Oct. 2 with Credit Agricole Bank entered into in 2011.

Then on Oct. 4, the company drew the full $460 million and along with available cash of approximately $102.2 million, fully repaid total debt of $562.2 million consisting of $186 million under the revolving credit facility led by HSH entered into in 2007; $181.6 million under the non-amortizing credit facility led by HSH entered into in 2008; and $194.6 million under the senior secured credit facility led by ING entered into in 2013.

After the refinancing, the company’s debt consists only of the loans outstanding under the new $460 million facility and its $15.8 million 2015 credit facility with ING.

Capital is an international, diversified shipping company is based in Athens.

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