Capital seeks cash

Capital Product Partners (CPP) has returned to the capital markets for cash to fund fleet expansion.

On Tuesday the diversified Greek operator announced plans to sell 15 million units by way of a public offering.

In a statement CPP said proceeds will likely be applied towards the $311.5m purchase of product tankers and containerships that it intends to acquire from affiliate Capital Maritime & Trading.

In addition the company indicated that some of the cash will be used to repurchase approximately $60m worth of common units from the same counterparty.

If CPP sold 15 million units at a cost of $10.96 a piece, the price they were commanding at the close, the operator would rake in roughly $164m from the public offering.

Provided underwriters exercised an option to acquire another 2.25 million units and paid the same price seen at 4:00 Tuesday afternoon the total would top $188m.

CPP identified UBS, BofA Merrill Lynch and Wells Fargo as the joint book-running managers of the offering. The list of co-lead managers includes Barclays, Jefferies, Raymond James and RBC. Stifel and Credit Agricole were named as co-managers.

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