Capital Product Partners Buys Aframax

 

The M/T ‘Aristaios' is currently employed under a time charter to Tesoro Far East Maritime Company (‘Tesoro') at a gross daily rate of $26,400. The Tesoro charter commenced in January 2017 with duration of five years +/- 45 days. 

 

The Partnership intends to fund the acquisition through available cash in the amount of $24.2 million and the assumption of a $28.3 million term loan under a credit facility previously arranged by Capital Maritime with Credit Agricole Corporate and Investment Bank and ING Bank NV, as mandated lead arrangers and book-runners. 

 

The term loan bears interest at LIBOR plus a margin of 2.85% and is payable in twelve consecutive semi-annual installments of approximately $1.0 million beginning in July 2018, plus a balloon payment payable together with the last semi-annual installment due in January 2024. 

 

The term loan is subject to ship finance covenants similar to the covenants applicable under our existing facilities. We expect the transaction to be consummated before January 31, 2018.

 

The purchase of the M/T ‘Aristaios' was entered into on an arm's length basis and was reviewed and unanimously approved by the conflicts committee of our Board of Directors and our entire Board of Directors.

 

Capital Product Partners, a Marshall Islands master limited partnership, is an international owner of tanker, container and drybulk vessels. The Partnership currently owns 36 vessels, including twenty-one modern MR (Medium Range) product tankers, four Suezmax crude oil tankers, ten Neo Panamax container vessels and one Capesize bulk carrier.