Whoa! Quite an interesting pair of transactions here. CPLP has a deal with Maersk, lookslike a sale=and-leaseback, for two 7943-TEU Containerships, each with slightly less-than4 years of charter coverage. As payment, CPLP is offering sponsor, CMTC two 2010-built VLCCs.There's also a separate charter extension deal for an unrelated vesselhttp://finance.yahoo.com/news/capital-product-partners-l-p-1...Is this a good deal for CPLP? Obviously, the nearly 4-year charters on each containership helpswith the revenue visibility. But how is Maersk being compensated? Are they getting the VLCCs as trade/payment? If so, that seems to negate the effect of the deal. Ifthe fixed-term length of contracts was 6-8 years, then it might have evened out. Perhaps, there's more stuff e.g. debtload adjustment, that's not mentioned.
Listen to the telephone replay--1. Accretive to cash flow2. Couldn't sell VLCCs in current market (so vessels go to sponsor)3. Sponsor has 12 newbuild container vessels delivering this year4. More details, including on OSG charters, in Q4 results5. OSG charters will not affect distribution6. Container vessels have lower OpEx than VLCCs
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