Capital Product Partners (CPLP) has priced €150m ($175m) in unsecured bonds offered a week ago on the Athens Stock Exchange at 2.65%.
The notes, which will be payable semi-annually and guaranteed by CPLP, are set to start trading on the Greek stock exchange on 25 October and will mature in 2026.
According to regulatory documents filed by CPLP Shipping Holdings — the subsidiary selling the bonds — net proceeds from the sale will go towards buying the 174,000-cbm Attalos, Adamastos and Asklipios (all built 2021).
These "optional" ships come with contracted revenues of about $429m at a rate of about $70,650 per day.
Once bought, they will join another three X-DF LNG sisterships that CPLP acquired from Capital Gas earlier this year for $600m — the 174,000-cbm Aristos 1 (built 2020) and the 174,000-cbm Aristidis 1 and Aristarchos (both built 2021).
The purchase of the first three ships marked the company’s debut in LNG. CPLP also owns 15 containerships and a capesize bulker.
“We are pleased to announce the closing of our first shipping bond on the Athens Exchange," CPLP chief executive Jerry Kalogiratos said in a statement.
"The successful bond issue further diversifies our company’s sources of financing and allows us to execute on our business plan with an attractive overall cost of capital.
"The bond was issued at the low end of the yield range based on exceptionally high demand.”
CPLP's shares, which trade on the Nasdaq stock exchange under the ticker symbol CPLP, gained 1.1% on Wednesday to close at $13.50.
This story was amended to reflect the correct bond amount.
