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Total other expense, net for the fourth quarter of 2012 amounted to $3.8 million compared to $7.6 million for the fourth quarter of 2011, as the result of the decrease in the interest expense and finance cost for the fourth quarter of 2012, which reflects the expiration of certain interest rate swaps and the reduction of the Partnership's total debt when compared to the fourth quarter of 2011.

As of December 31, 2012, the Partners' capital amounted to $573.8 million, which is $56.5 million higher than the Partners' capital as of December 31, 2011. This increase primarily reflects the issuance of the 15,555,554 Class B Units, which raised gross proceeds of approximately $140.0 million, combined with the payment of $73.3 million in common and Class B distributions since December 31, 2011 and the net loss for the fourth quarter of 2012.

As of December 31, 2012, the Partnership's total debt had decreased by $175.2 million to $458.4 million, compared to total debt of $633.6 million as of December 31, 2011. In connection with the issuance of the Class B Units, the Partnership executed amendments to its three credit facilities and prepaid debt of $149.6 million, also utilizing part of its cash balances. The amendments provide for a deferral of all remaining scheduled amortization payments that were due between 2012 and 2015 (inclusive) under each of the Partnership's credit facilities until March 31, 2016. As of December 31, 2012, the Partnership had swapped $59.1 million of its debt into fixed rates, whereas the remaining $399.3 million of its total debt of $458.4 million is in floating rates.

One Year Time Charter Extension for Amore Mio II And Other Fleet Developments

BP Singapore Pte Ltd (BP Singapore) has extended the time charter employment of the M/T 'Amore Mio II' (159,982 dwt, built 2001 by Daewoo Shipbuilding and Marine Engineering Co., Ltd., South Korea) for floating storage, at a gross rate of $17,500 per day from March 2013 until February 2014 (inclusive of charterer's option to extend for a further 3 months).

On January 7, 2013, the Partnership announced the acquisition of two post panamax container vessels, the M/V 'Archimidis' (7,943TEU, built 2006 Daewoo Shipbuilding, S. Korea) and the M/V 'Agamemnon' (7,943TEU, built 2007 Daewoo Shipbuilding, S. Korea). Both the M/V 'Archimidis' and the M/V 'Agamemnon' are employed on time charters with the industry leader A.P. Moller-Maersk A.S. ("Maersk Line") at a gross daily rate of $34,000 per day with earliest redelivery in November 2015 and August 2015, respectively. Maersk Line has the option to extend the charter of both vessels for an additional four years at a gross daily rate of $31,500 and $30,500 per day, respectively for the fourth and fifth year and $32,000 per day for the final two years. If all options were to be exercised, the employment of the vessels would extend to July 2019 for the M/V 'Agamemnon' and December 2019 for the M/V 'Archimidis'.

As consideration for the acquisition of the two container vessels, CPLP contributed the VLCC tankers M/T 'Alexander The Great' (297,958 dwt, built 2010 Universal Shipbuilding Corporation, Japan) and M/T 'Achilleas' (297,863 dwt, built 2010 Universal Shipbuilding Corporation, Japan) to CMTC, both of which were under charter to CMTC at $28,000 per day.

The transaction was unanimously recommended by the Partnership's Conflicts Committee and unanimously approved by the Partnership's Board. The effective date of the transaction was December 22, 2012.