Units will convert to company's common units on a one-for-one basis
By Devika Patel
Knoxville, Tenn., May 14 - Capital Product Partners LP said it will raise $140 million in a private placement of class B convertible preferred units. Evercore Partners was the agent.
The company will sell the units at $9.00 apiece. The purchase price is a 14.07% premium to the May 11 closing share price of $7.89 and also represents a 9.7% premium to the trailing 30-day volume-weighted average price of the common units, the company said in a press release.
The units convert to common units on a one-for-one basis. The class B Units will pay a fixed quarterly distribution of $0.21375 per unit, representing an annualized distribution yield of 9.5%.
Investors include Kayne Anderson Capital Advisors, LP, Swank Capital LLC, Salient Partners, and Capital Maritime & Trading Corp.
Proceeds will be used to repay $149.6 million of debt across the partnership's three credit facilities.
Capital Product is an Athens-based tanker company that transports crude oil and refined petroleum products, edible oils and soft chemicals.
| Issuer: | Capital Product Partners LP
|
| Issue: | Class B convertible preferred units
|
| Amount: | $140 million
|
| Price: | $9.00
|
| Distribution: | $0.21375 per quarter
|
| Distribution yield: | 9.5% per year
|
| Conversion ratio: | One for one
|
| Warrants: | No
|
| Agent: | Evercore Partners
|
| Investors: | Kayne Anderson Capital Advisors, LP, Swank Capital LLC, Salient Partners, and Capital Maritime & Trading Corp.
|
| Pricing date: | May 14
|
| Stock symbol: | Nasdaq: CPLP
|
| Stock price: | $7.89 at close May 11
|
| Market capitalization: | $534.75 million
|
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