Capital Product Partners Strikes $3.13B Acquisition Deal of 11 LNG Carriers

Greek owner Capital Product Partners (CPLP) has closed the umbrella agreement from November 2023, and is moving forward with the $3.13 billion acquisition of 11 newbuild LNG carrier vessels.

CPLP entered into the umbrella agreement with Capital Maritime & Trading Corp. and Capital GP on November 13, providing for the acquisition of 11 newbuild liquefied LNG carriers.

Upon the closing of the umbrella agreement, CPLP entered into 11 share purchase agreements to acquire 100% of the equity interests in each vessel-owning company.

Each Vessel will have a capacity of 174,000 cubic meters, built or under construction, at Hyundai Heavy Industries and Hyundai Samho Heavy Industries, South Korea.

In accordance with the company, the acquisition of the vessel-owning company of the LNG/C Amore Mio I was closed, and the vessel was delivered to the partnership. It also paid to Capital Maritime the aggregate acquisition price of $141.7m.

CPLP said it expects to close the acquisitions of the LNG/Cs Axios II, Assos, Apostolos, Aktoras, Archimidis and Agamemnon, upon completion of each vessel’s construction and delivery from the shipbuilder.

CPLP paid to Capital Maritime a deposit in the amount of 10% of the aggregate acquisition price of the initial vessels, or $174.4m, and the remainder with respect to each initial vessel will be paid upon delivery of such vessel, totalling $1,569.6m for all initial vessels.

The owner also closed the acquisitions of 100% of the equity interests in each of the vessel-owning companies of the LNG/Cs Alcaios I, Antaios I, Athlos and Archon. The owner paid to Capital Maritime the aggregate purchase price for the remaining vessels of $138.1m, taking over the obligations of the vessel-owning companies under the respective shipbuilding contracts with Hyundai, and it expects to pay an additional total amount of $909.9m to Hyundai in pre-delivery and delivery installments.

Following the closing of the umbrella agreement, CPLP plans to explore the disposal of its container vessels and will abstain from acquiring additional container vessels.

Also, the partnership has agreed to change its name, setting out plans to negotiate the terms for the conversion from a Marshall Islands limited partnership to a corporation with customary corporate governance provisions by June 21, 2024.

CPLP currently owns 23 vessels, including eight latest generation LNG carrier vessels, 12 neo-panamax container vessels and three panamax container vessels.