Hi Steve -
What do you make of this? Stock selling off on the news. May provide a good entry point.
RE: Capital Product Partners L.P. (CPLP)
Capital Product Partners L.P. Announces Offering of 5,500,000 Common Units and Intention to Acquire MR Tanker M/T Assos
From the article:"... Capital Product Partners L.P. (the Partnership) (NASDAQ:CPLP - News) announced today that it plans to offer 5,500,000 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 825,000 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 Assos (renamed M/T Insurgentes), a medium range product tanker vessel, from its sponsor Capital Maritime & Trading Corp. (Capital Maritime) and for general partnership purposes..."
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"...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 $3,075 and Capital Ship Management Corp. will provide management services at a fixed daily rate of $500..."
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Isn't it interesting that Capital Maritime owns roughly a 46% interest in Capital Product Partners and the entire CPLP fleet is managed by Capital Maritime & Trading Corp.. I guess they have a vested interest to see that CPLP is successful and profitable. I wonder if Capital Maritime earns a large fee for brokering the deal between partners?
EKS |
