London: Capital Product Partners (CPLP) is planning a public offering of 12.8m common units representing limited partnership interests, from which the proceeds will be used to meet debt repayments.
At the time of writing, the offering is worth around $127.1m at CPLP’s current stock price of $9.93.
Of these 12.8m units, 1.1m will be delivered to Capital Maritime & Trading Corp, the NASDAQ-quoted company’s sponsor.
Underwriters will have a 30-day option to purchase up to an additional 1.92m common units.
Proceeds from the offering will be used to prepay quarterly payments on its credit facilities scheduled for 2016 and 2017, plus related expenses and for general partnership purposes.
CPLP has proposed amendments to its 2007, 2008 and 2011 credit facilities that would extend the non-amortizing periods of each facility to the fourth quarter of 2017. The amendments are expected to be accepted after completion of this new public offering.
The move comes just over a month after the company cancelled its plans to raise $260m through the bond market, calling the former plan “opportunistic”.
The Athens-based company operates 20 tankers plus two boxships and a capesize bulker.