Capital Product Partners L.P. Announces Offering of 5,800,000 Common Units and Intention to Acquire Mr Tanker M/T Atrotos

ATHENS, Greece, Feb 22, 2010 (GlobeNewswire via COMTEX News Network) -- Capital Product Partners L.P. (the Partnership) (Nasdaq:CPLP) announced today that it plans to offer 5,800,000 common units representing limited partnership interests in a public offering. The Partnership expects to grant the underwriters a 30-day option to purchase an additional 870,000 common units to cover over-allotments, if any. The Partnership expects to use the net proceeds from the public offering to acquire the M/T Atrotos (renamed M/T El Pipila), a medium range product tanker vessel, from its sponsor Capital Maritime & Trading Corp. (Capital Maritime) and for general corporate expenses.

The Partnership intends, subject to the successful completion of the offering, to acquire the M/T Atrotos from Capital Maritime for a purchase price of $43 million, which will be funded by the proceeds from the offering. The M/T Atrotos is a 48,000 dwt, Ice Class 1A, chemical/product tanker built in 2007 at Hyundai MIPO Dockyard Co., Ltd. in South Korea. The vessel has been chartered to Petróleos Mexicanos (PEMEX), the state-owned Mexican petroleum company, through Arrendadora Ocean Mexicana, S.A. de C.V., under a charter expected to expire in March 2014. The net base rate under the charter is $19,900 per day. The vessel's operating expenses are fixed until the expiration of the charter at a daily rate of $3,575.

The acquisition of the M/T Atrotos was unanimously approved by the Partnership's Board of Directors following the unanimous approval and recommendation of the Board's conflicts committee, which is comprised entirely of independent directors.

The Partnership's common units trade on the Nasdaq Global Market under the symbol "CPLP".

The joint book-running managers for this offering are UBS Investment Bank and Citi. The senior manager is Barclays Capital and the co-managers are Oppenheimer & Co. and Stifel Nicolaus.

When available, copies of the prospectus supplement and accompanying base prospectus related to this offering may be obtained from UBS Investment Bank, Attention: Prospectus Department, 299 Park Avenue, New York, NY 10171, or by calling UBS toll-free at: 888-827-7275 or from Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling Citi toll-free phone: 800-831-9146.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This offering may be made only by means of a prospectus supplement and accompanying base prospectus.

About Capital Product Partners L.P.

Capital Product Partners L.P. (Nasdaq: CPLP), a Marshall Islands master limited partnership, is an international owner of modern double-hull tankers. Capital Product Partners L.P. owns 18 modern vessels, comprising 15 MR tankers, two small product tankers and one Suezmax crude oil tanker. Our vessels are under medium to long-term charters to BP Shipping Limited, Morgan Stanley Capital Group Inc., Overseas Shipholding Group and Shell International Trading & Shipping Company Ltd.

Capital Product Partners L.P. press release