In a statement Nasdaq-quoted CPLP acknowledged that the “pursuit of this transaction was opportunistic” but declined to elaborate further.
The operator also failed to shed light on whether the decision will impact efforts to finalise a new $260m senior secured credit facility.
When CPLP first announced plans to sell first-priority ship mortgage notes due 2022 late last month it said proceeds from this initiative and the facility would be used to repay outstanding loans minted in 2007, 2008 and 2011.
Moody’s Investors Service initiated coverage of the owner, which was stamped with a corporate family and probability of default rating of “B2”, on the same day it issued an announcement about the notes.
In the statement published 26 February the Athens-based operator of tankers, containerships and a bulker described the $260m credit facility as “proposed”.
Today, several Wall Street sources who track CPLP told TradeWinds that the phrasing of the update suggests management “was hoping for better pricing”.
One also argued that he wouldn’t be surprised to see the operator try again at some point down the road if freight rates in its core markets continue to firm.
Attempts to contact CPLP about today’s announcement, which was issued after the close on Thursday evening, were not immediately successful at the time writing.
CLICK HERE to read more about Evangelos Marinakis, the chairman of CPLP’s sponsor, in the latest edition of our quarterly news magazine TW+
