ATHENS, GREECE -- (Marketwire) -- 05/14/12 -- Capital Product Partners L.P. (the "Partnership") (NASDAQ: CPLP), an international owner of modern double-hull tankers, announced today the agreement to issue $140 million of Class B Convertible Preferred Units ("Class B Units") to a group of investors including Kayne Anderson Capital Advisors, L.P., Swank Capital LLC, Salient Partners, and the Partnership's Sponsor, Capital Maritime & Trading Corp. ("Capital Maritime").
The Class B Units are priced at $9.00 per unit and are convertible at any time into common units of the Partnership ("Common Units") on a one-for-one basis. The purchase price represents a 9.7 percent premium to the trailing 30 day volume-weighted average price of the Common Units. The Class B Units will pay a fixed quarterly distribution of $0.21375 per unit representing an annualized distribution yield of 9.5 percent. The Partnership intends to use the net proceeds from the issuance, together with part of its cash balances, to repay debt of $149.6 million across the Partnership's three credit facilities. Under the terms of the amendment, the next scheduled amortization payment under each of the Partnership's credit facilities will commence on March 31, 2016. The parties to the transaction are subject to a 120 day lock up period and the transaction's closing is subject to completion of the necessary loan documentation. The Board of Directors of the Partnership unanimously approved the terms of this transaction.
"We are pleased to enter into this transaction with Kayne Anderson, a significant holder of our common units and to welcome important new investors to the Partnership. Also, we are thankful for our Sponsor's continued support and substantial investment," said Mr. Ioannis Lazaridis, Chief Executive and Chief Financial Officer of the Partnership's General Partner. "We firmly believe this transaction advances our common unitholders' interests by significantly strengthening our equity base and balance sheet. This provides clear visibility to our $0.93 per unit annual distribution, a pathway to distribution growth and it enhances our financial flexibility to pursue growth opportunities."
The definitive agreements related to this transaction will be filed with the Securities and Exchange Commission ("SEC") and available on the SEC's website at www.sec.gov following the closing of the transaction.
Evercore Partners acted as exclusive placement agent in connection with the transaction.
Neither the Class B Units nor the Common Units into which they are convertible have been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and they may not be offered or sold in the United States absent a registration statement or exemption from registration. This notice is issued pursuant to Rule 135c under the Securities Act of 1933 and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
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