ICBCFL provides $155.4 million to Capital Product Partners L.P. for sale and lease back of three 9,000 TEU container vessels

Project narrative

In December 2019, Capital Product Partners L.P. — an international owner of ocean-going vessels that is legally incorporate in the Marshall Islands — entered into a term sheet with ICBC Financial Leasing Co., Ltd. (ICBCFL) for the sale and lease back of three vessels mortgaged under a 2017 credit facility. Then, on May 27, 2020, Capital Product Partners L.P. announced the successful closing of the refinancing of its three 9,000 TEU container vessels. Capital Product Partners L.P. completed the refinancing with ICBCFL for the sale and lease back of three vessels previously mortgaged under our 2017 credit facility — namely, the CMA CGM Amazon, the CMA CGM Uruguay and the CMA CGM Magdalena, for a total amount of $155.4 million. The lease has a duration of seven years after drawdown, bears interest at LIBOR plus a margin of 2.60% and includes mandatory purchase obligations for us to repurchase the vessels on expiration of the agreement, at the predetermined price of $77.7 million. In addition, Capital Product Partners L.P. has various purchase options commencing from the first year anniversary of the lease. The full amount was drawn on May 27, 2020. The amount that Capital Product Partners L.P. repaid to release these three vessels under the 2017 credit facility was $116.5 million. On April 7, 2021, Capital Product Partners L.P. entered into memorandums of agreement for the sale of the M/V CMA CGM Magdalena and the M/V Adonis to an unaffiliated third party for a total consideration of $195.0 million. Delivery of the M/V CMA CGM Magdalena and the M/V Adonis to their buyer was expected in May and July/August 2021, respectively. The amount to be repaid to ICBCFL on the delivery of the vessels to their new owners was estimated to be approximately $97.4 million.