Capital Product Partners L.P. Announces Long Term Fixed Rate Period Employment With Profit Share Arrangements for Three of Its Crude Tanker Vessels
ATHENS, GREECE (MARKET WIRE) 10/20/11
In particular, the M/T 'Alexander The Great' (297,958 dwt, built 2010 Universal Shipbuilding Corp.), the M/T 'Amoureux' (150,393 dwt, built 2008 Universal Shipbuilding Corp.) and the M/T 'Aias' (150,096 dwt, built 2008 Universal Shipbuilding Corp.) have all secured employment with the Partnership's sponsor, Capital Maritime & Trading Corp. ('CMTC') for a maximum charter term of up to 3 years.
The M/T 'Alexander The Great' will be earning a gross daily charter rate of $28,000 per day plus 50/50 profit share on actual earnings settled every 6 months for the first 12 months of its time charter to CMTC. CMTC has the option to extend the time charter employment for a second year at $34,000 per day and for a third year at $38,000 per day with the same profit share arrangements.
The M/T 'Aias' and the M/T 'Amoureux' will be earning a gross daily charter rate of $20,000 per day plus 50/50 profit share on actual earnings settled every 6 months for the first 12 months of their time charter to CMTC. CMTC has the option to extend the time charter employment for a second year at $24,000 per day and for a third year at $28,000 per day with the same profit share arrangements.
The Conflicts Committee of the Partnership has unanimously approved the above mentioned charters.
All three vessels are expected to be delivered to CMTC under their respective time charter employment in the course of October/November 2011.
Management Commentary
Mr. Ioannis Lazaridis, Chief Executive and Chief Financial Officer of the Partnership's General Partner commented: "We are pleased to announce the long term fixed rate period employment for three of our five spot crude tanker vessels, shortly after the successful completion of the merger with Crude Carriers Corp. This is consistent with the Partnership's business model of long term charter coverage for our fleet. We intend to also fix our remaining two crude tanker vessels in the coming months as opportunities arise, in order to reduce the Partnership's remaining crude spot market exposure."
"The profit share arrangements we have secured for all three vessels is an important feature of these charters, as it allows the Partnership to benefit from a recovery in the crude tanker spot market going forward and enhance future distribution growth."
"Following the commencement of the announced charters, the Partnership's charter coverage of total fleet days is estimated to stand at 64% for 2012. We have positioned a number of our product tankers to open during the coming 12 months, given the favorable product tanker market fundamentals that we see. The average remaining charter duration of our fleet stands at 5.2 years, assuming that CMTC will exercise its extension options for all three vessels."
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. The Partnership currently owns 27 vessels, including two VLCCs (Very Large Crude Carriers), four Suezmax crude oil tankers, 18 modern MR tankers, two small product tankers and one capesize bulk carrier. Most of its vessels are under medium- to long-term charters to BP Shipping Limited, Overseas Shipholding Group, Petrobras, Arrendadora Ocean Mexicana, S.A. de C.V., Cosco Bulk Carrier Co. Ltd and Capital Maritime & Trading Corp.
Capital Product Partners L.P. press release