Capital Product Partners (CPP) has decided to cut its first quarter dividend in order to create a cash reserve that will secure future debt repayments.
In an anticipated move, the master limited partnership (MLP) chopped its cash distribution to $0.075 per common unit, compared to $0.216 for the corresponding period of 2015.
Starting from this quarter, CPP will reserve around $14.6m on a quarterly basis and it said this will help the company meet its financial obligations by the end of 2018.
CPP
