ATHENS, Greece, Jan. 31, 2008 (PRIME NEWSWIRE) -- Capital Product Partners L.P. (Nasdaq:CPLP) today announced that it has secured a firm commitment for a new ten-year revolving credit facility of up to $350 million which is non-amortizing until March 31, 2013. HSH Nordbank and DnB Nor Markets will act as lead arranger and co-arranger, respectively.
The facility carries a rate of LIBOR + 110 basis points and a commitment fee of 32.5 basis points. The company intends to swap the LIBOR portion of any amounts drawn down under this facility into a fixed rate until the end of the non-amortizing period in March 2013.
Ioannis Lazaridis, Chief Executive and Chief Financial Officer of Capital Product Partners' general partner, said, "We are very pleased that in the current credit market conditions, we have secured a firm commitment for a non-amortizing revolving credit facility of up to $350 million, which provides us with the capital and financial flexibility to continue to grow our company. The credit facility is intended to finance up to 50% of the purchase price of any potential future drop downs of modern tanker vessels to Capital Product Partners L.P. from Capital Maritime & Trading Corp. or any third parties."
The company expects to complete the facility by the end of the first quarter of 2008. Completion is subject to the execution of definitive documents, satisfaction of customary conditions to closing as well as approval by the Board of Directors of Capital Product Partners L.P.
About Capital Product Partners L.P.
Capital Product Partners L.P. (Nasdaq:CPLP), a Marshall Islands master limited partnership, is an international owner of product tankers. The Partnership owns 14 modern product tankers, including 12 Ice Class 1A medium-range tankers and one small tanker, and has an agreement to purchase three additional MR product tankers from Capital Maritime & Trading Corp. All 16 vessels are under medium- to long-term charters to BP Shipping Limited, Morgan Stanley, Overseas Shipholding Group and Trafigura Beheer B.V.
Forward-Looking Statements
The statements in this press release that are not historical facts, including statements regarding the completion of loan documentation, terms of the loan and expected drop down of vessels, may be forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, to conform them to actual results or otherwise. We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no prediction or statement about the performance of our common units.
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