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Total other expense, net for the first quarter of 2013 amounted to $3.5 million compared to $8.0 million for the first quarter of 2012. The decrease in the interest expense and finance cost for the first quarter of 2013 reflects the expiration of certain interest rate swaps and the reduction of the Partnership's total debt when compared to the first quarter of 2012.

As of March 31, 2013, the Partners' capital amounted to $653.2 million, which is $79.4 million higher than the Partners' capital as of December 31, 2012. This increase primarily reflects the issuance of the 9.1 million Class B Units, which raised gross proceeds of approximately $75.1 million, combined with the payment of $19.8 million in distributions since December 31, 2012 and the net income for the first quarter of 2013.

As of March 31, 2013, the Partnership's total debt has increased by $54.0 million to $512.4 million, compared to total debt of $458.4 million as of December 31, 2012, as a result of the $54.0 million drawdown on the Partnership's credit facilities during the first quarter of 2013 in connection with the acquisition of the 5,023 TEU Container Vessels.

Issuance of 9.1 million Class B Convertible Preferred Units and Acquisition of Two Container Vessels

The Partnership announced on March 15, 2013 that it reached an agreement to issue 9.1 million Class B Convertible Preferred Units to funds managed by Kayne Anderson Capital Advisors, L.P. and Oaktree Capital Management, L.P. as well as and the Partnership's Sponsor, Capital Maritime and Trading Corp. ("Capital Maritime"). The Class B Preferred Units are convertible at any time into common units of the Partnership ("Common Units") on a one-for one basis. The Class B Preferred Units will pay a fixed quarterly distribution of $0.21375 per unit.

The Partnership used the net proceeds from the issuance of the Class B Preferred Units together with approximately $54.0 million from its existing credit facilities and part of its cash balances for the acquisition of the 5,023 TEU Container Vessels for a total consideration of $130.0 million. Both the M/V 'Hyundai Premium' and M/V 'Hyundai Paramount' are 2013 built at Hyundai Heavy Industries Co. Ltd. The vessels were originally ordered by Capital Maritime and were built to the latest fuel efficient and eco-friendly design. Both vessels have secured a 12 year time charter employment (+/- 60 days) to Hyundai Merchant Marine Co. Ltd. ("HMM") at a gross rate of $29,350 per day.

Fleet Developments

The M/T Agamemnon II (51,238 dwt, built 2008 by STX Offshore & Shipbuilding Co., South Korea) secured a time charter employment with Capital Maritime at an increased rate of $14,500 gross per day for 12 months (+/- 30 days). The new charter commenced at the end of March 2013. The vessel was previously chartered to BP Shipping Ltd. at a rate of $14,000 gross per day.

We reached an agreement with Overseas Shipholding Group Inc. ("OSG") and certain of OSG's subsidiaries regarding the long term bareboat charters of three of our product tanker vessels.

On November 14, 2012, OSG made a voluntary filing for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware, and it is currently subject to bankruptcy proceedings. CPLP had fixed three IMO II/III Chemical/Product tankers (M/T Alexandros II, M/T Aristotelis II and M/T Aris II, all built in 2008 by STX Offshore & Shipbuilding Co. Ltd.) with long term bareboat charters, to subsidiaries of OSG. These bareboat charters had scheduled terminations in February, July and September of 2018, respectively, and had rates ($13,000 per day) that were substantially above current market rates.