Capital Maritime & Trading (Capital Maritime) has reached an umbrella agreement with Capital Product Partners (CPLP), an international shipping company engaged in the transportation of natural gas and containerized goods, that includes the acquisition of 11 newbuild liquefied natural gas (LNG) carriers from Capital Maritime for $3.13 billion.
The vessels—expected to enter CPLP’s fleet from 2023 to 2027—would make CPLP one of the largest U.S. publicly traded owners of two-stroke LNG carriers.
In addition to commercial debt, and in order to finance a portion of the purchase price for the vessels, CPLP will conduct a $500 million rights offering, which Capital Maritime has agreed to fully backstop for no fee. Capital Maritime also agreed to issue to CPLP an unsecured seller’s credit of up to $220 million and grant CPLP a right of first refusal on certain ammonia carriers and liquid CO2 carriers on order by Capital Maritime, as well as future two-stroke LNG vessels and charters from Capital Maritime.
In connection with the acquisition, CPLP has also agreed to change its name to Capital New Energy Carriers and will explore the disposal of its container vessels and abstain from acquiring additional container vessels.
The S&C team advising Capital Maritime and CPLP in the transaction includes Richard Pollack, Abigail Yevnin, Andrew Brickfield and Arthur Courroy. Presley Warner advised on financing-related matters. David Spitzer, Saul Brander and Stephen Profeta advised on tax matters.
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