Record-breaking over-subscription for CPLP bond issue

23:59 20/10/2021 - Πηγή: Τα Νεα

A 150-million-euro bond issue by CPLP Shipping Holdings Plc has been oversubscribed by more than five times, with listed offers exceeding 800 million euros for five-year senior unsecured bonds by the Nasdaq-listed shipping company founded by Evangelos Marinakis.

CPLP Shipping Holdings is a wholly owned subsidiary of Capital

Product Partners L.P, an international owner of ocean-going vessels.

Specifically, total bidding demand by investors for the public offer reached 801.37 million euros, oversubscribing the issue by 5.3 times, and amid extremely high interest by private and institutional investors.

The price per bond was set at €1,000, with the final yield reaching 2.65 percent per annum.

Additionally, 66.67 percent of the issue was picked up by private investors, with 33.33 percent picked up by institutional creditors.

The shipping-related bond issue by the Marinakis-controlled company is the second in the Greek market, following a bond issue floated by Konstantakopoulos family-controlled Costamare, totaling 100 million euros, and with bid offers reaching 665 million euros.

The considerable interest by investors for the new shipping bond marks the most successful such corporate issue of bonds traded on the Athens Stock Exchange’s (ATHEX) primary market.

The record-setting success of the issue is due, in large part, to the significant commercial size of the broader Marinakis-owned shipping group, as well as on the financial strength of Capital Product Partners, which has been listed on Nasdaq since 2007 and is also the guarantor of the bonds.

CPLP announced that it aims to use the 150 million euros raised to partly finance a “green” strategic business plan totaling 1.2 billion euros, in order to boost its fleet with state-of-the-art, environmentally-friendly LNG carriers, which also use LNG as propulsion fuel.

The technologically advanced newbuilding vessels are chartered on long-term contracts to major energy companies, such as BP, ENGIE and Cheniere.

“We are pleased to announce the closing of our first shipping bond on the Athens Exchange. The successful bond issue further diversifies our Company’s sources of financing and allows us to execute on our business plan with an attractive overall cost of capital. The bond was issued at the low end of the yield range based on exceptionally high demand.”  CPLP Chief Executive Officer Jerry Kalogiratos said.

CPLP has elected to follow a conservative business model since its Nasdaq listing in 2007, focusing on visible future cash flows and the creation of surplus value for its shareholders. It is indicative that the shipping firm has continuously paid dividends to its shareholders, currently adding up to almost USD800 million.

The CPLP fleet will increase to 22 vessels with acquisitions funded by the bond issue, including 15 Neo-Panamax container vessels, one Capesize bulk carrier and six LNG carriers.