Capital Product Partners formally entered a $460m refinancing deal for its long-term debt.
The Jerry Kalogiratos-led shipowner said back in May it had a preliminary offer from its existing lenders HSH Nordbank and ING Bank to refinance four outstanding credit facilities.
Those credit facilities amounted to $580m in long-term debt as of last June, with margins above Libor ranging between 3% and 3.5%.
The refinancing has a six-year maturity, with a payable date no later than November 2023. It will be payable quarterly at an interest rate of Libor plus a margin of 3.25%, compared with a weighted average margin of 3.18% under the old credit lines.
Capital Products will also splash out cash of $120.6m to pay down the old credit line. It said long-term debt after the new facility will be approximately $475.8m.
