NASDAQ-listed Capital Product Partners (CPP) has priced a follow-on equity offering that will enable amendments to its credit facilities.
The mixed-fleet operator announced on 16 April that it will sell 12.8 million common units at USD9.53/unit, a relatively small 4% discount to the closing price on 15 April, just prior to the offering announcement.
Gross proceeds will be USD122 million, or USD140.3 million if underwriters fully exercise their option to buy an additional 1.92 million common units.
CPP will use net proceeds to prepay quarterly amortisation payments that had been scheduled for 2016-1Q17. In return, amortisation payments under three loan agreements will be pushed back until November-December 2017 and the final maturities of two credit facilities will be pushed back until 31 December 2019.
CPP’s successful offering of common units marks the company’s second capital-raising effort this year. On 26 February, it announced plans to sell USD260 million in first-priority ship mortgage notes maturing in 2012. However, that plan was cancelled on 12 March.
Evangelos Marinakis-led CPP owns a fleet of 19 product tankers, four crude tankers, seven container ships, and one bulk carrier.