Shipping company Capital Product Partners (CPLP) will buy the 174,000 cbm LNG carrier Asterix I, under construction at Korean shipyard Hyundai Heavy Industries, bringing its fleet to seven LNGCs.
On 7 June, the Marshall Islands partnership announced that it has agreed to exercise its right of the first offer. Therefore, it will buy one 174,000 cbm latest generation X-DF LNGC from Capital Maritime & Trading. It will also acquire three 13,278 TEU hybrid scrubber-fitted Tier III and Phase III, dual fuel-ready eco container sister vessels.
The LNG carrier Asterix I is currently under construction by Hyundai Heavy Industries. CPLP expects it to arrive in January 2023 upon its delivery from the shipyard. The Asterix I comes with a long-term time charter with Hartree Partners for a firm period of five years.
Moreover, the three 13,278 TEU eco container sister vessels are currently under construction by Hyundai Samho. They are scheduled for delivery in October 2022, January 2023, and May 2023. The vessels have secured long-term time charters with Hapag Lloyd Aktiengesellschaft for a firm period of ten years.
The total consideration for the four vessels amounts to $597.5 million; $122.0 million of cash, $468.0 million of debt, and $7.5 million in CPLP common units.
These acquisitions are to generate approximately $73.4 million of annual gross revenue over the firm period of the charters. The vessels will be paid for upon the delivery of each ship.
Sale of two 8,266 TEU container vessels
On 30 May 2022, CPLP entered into a memorandum of agreement for the sale of M/V Archimidis and M/V Agamemnon to an unaffiliated third party for total consideration of $130.0 million. Delivery of the two vessels to their buyer is to take place in the third quarter of 2022.
The estimated carrying value of the vessels as of 30 May was approximately $38.7 million and $41.8 million respectively resulting in an expected gain of approximately $49.5 million.
Capital Product Partners expects to generate gross cash proceeds from the sale, after repaying outstanding debt, of approximately $99.5 million.
Jerry Kalogiratos, CEO of the Partnership’s General Partner, commented: “The divestment of our two oldest container vessels allows the Partnership to benefit from the historically high container market and is in line with our strategy of divesting older vessels. At the same time, we are replacing a sixteen- and a fifteen-year-old vessel, both of which have less than two years remaining charter duration, and redeploying the equity released from the sale into four brand new, latest generation LNG and container carriers with firm charters in place of minimum 8.8 years duration and $580.7 million of contracted revenue.”
“On a fully-delivered basis, these transactions will reduce the average age of our fleet by approximately 2.9 years. We expect the acquisitions to be accretive across all financial metrics, increasing our distributable cash flow, further extending our cash flow visibility, while continuing to replenish the average age of our fleet and reducing its carbon intensity.”
CPLP currently owns 21 vessels. These specifically include six LNG carriers, eleven Neo-Panamax container vessels, three Panamax container vessels, and one Capesize bulk carrier.