Business Context and Reporting Period
This Form 6-K filing by Capital Product Partners L.P. (CPLP), a Marshall Islands master limited partnership, was submitted on July 20, 2007. The report discloses a press release dated July 13, 2007, regarding the successful delivery of the company's tenth medium range (MR) product tanker, the M/T "Akeraios."
Key Financial Metrics and Fleet Status
- Fleet Expansion: CPLP now owns ten MR Ice Class 1A product tankers following the delivery of the M/T "Akeraios."
- Vessel Specifications: The M/T "Akeraios" has a carrying capacity of 47,781 dwt and is ice-strengthened.
- Charter Terms: The vessel is fixed under a three-year time charter with Morgan Stanley Capital Group Inc. at a base rate of $20,000 per day.
- Profit Sharing: The charter includes a 50/50 profit-sharing arrangement for revenues exceeding the base rate when spot rates are higher.
- Capital Expenditure: The purchase price for the M/T "Akeraios" was $56 million.
- Funding Source: The acquisition was fully funded through a drawdown on the company's existing revolving credit facility.
Material Changes and Future Deliveries
The delivery of the M/T "Akeraios" represents the second of seven additional MR product tankers CPLP agreed to purchase from Capital Maritime & Trading Corp. The remaining five vessels are scheduled for delivery as follows:
- Two Ice Class 1A sister vessels scheduled for October 2007.
- Three MR product tanker sister vessels scheduled for delivery in 2008.
All fifteen vessels in the current and future fleet are under medium to long-term charters with BP Shipping Limited, Morgan Stanley, and Overseas Shipholding Group Inc.
Outlook, Risks, and Management Commentary
Management highlighted the successful integration of the new vessel into the fleet and the secured long-term charter coverage. The filing includes standard forward-looking statements, noting that future results may differ materially due to risks and uncertainties. CPLP expressly disclaims any obligation to update these statements. No specific financial guidance regarding revenue, profit, or cash flow for the reporting period was provided in this specific filing.
Investor Verification Checklist
- Verify the utilization rate and actual earnings of the M/T "Akeraios" under the Morgan Stanley charter.
- Confirm the status of the remaining five vessel deliveries scheduled for late 2007 and 2008.
- Review the terms and remaining capacity of the revolving credit facility used to fund the $56 million purchase.
- Monitor spot market rates to assess potential upside from the 50/50 profit-sharing arrangement.