Capital Adds Newbuilding, Lands New Charters

first_imgzoom Nasdaq-listed owner and operator of tanker, container and dry bulk ships Capital Product Partners has taken delivery of the 50,000 dwt newbuilding tanker M/T Active, and agreed on new time charter employment for two of its tankers at increased day rates.M/T Active was built by South Korea’s Samsung Heavy Industries, and it is the first of five vessels Capital agreed to acquire from their sponsor, Capital Maritime & Trading Corp.The USD 33.5 million purchase price for the M/T Active was funded through a drawdown of USD 16.8 million under a senior secured credit facility with ING Bank N.V., and available cash, including the proceeds of the equity offering completed in September 2014.The M/T Active is chartered to Capital Maritime for a minimum charter term of 24 months (+/- 30 days) at a gross daily charter rate of USD 17,000 plus 50/50 profit share on actual earnings settled every six months.The additional four vessels Capital Product bought from Capital Maritime comprise three newbuild 9,160 TEU eco-flex container ships under construction at Daewoo Mangalia Heavy Industries with expected deliveries in June, August and November 2015 and an additional eco medium range product tanker under construction at Samsung Heavy Industries, with expected delivery in June 2015.In addition, Capital Product has a right of first refusal over six newbuilding eco medium range product tankers built by Samsung Heavy Industries.The three container ships are scheduled to enter into five-year time charter employment to CMA-CGM S.A., and the medium range product tanker is scheduled to enter into two-year time charter employment to Capital Maritime.The company also extended the time charter employment of the 162,397 dwt crude carrier M/T Militiadis M II to Petróleos Mexicanos (PEMEX), for eleven months (+/- 30 days) at an increased daily rate of USD 33,000 gross. Previously, the vessel earned USD 28,000 gross per day. The new charter is expected to commence in April 2015.The 47,834 dwt M/T Avax has secured employment to Petróleo Brasileiro S.A. (Petrobras) for three years (+/- 30 days) at USD 15,400 gross per day. The charter is expected to commence at the end of April 2015. The vessel is currently earning USD 14,750 gross per day under its time charter employment with Capital Maritime.last_img read more

Rival Indigenous bidder for the Trans Mountain pipeline cautiously welcomed

CALGARY — The British Columbia director for a First Nations consortium planning to buy a majority stake in the Trans Mountain pipeline says the emergence of a rival Alberta Indigenous bidder raises concerns about weakening his group’s all-inclusive bid.But Shane Gottfriedson of Project Reconciliation says he welcomes the interest and competition from Iron Coalition, an Alberta-based organization co-chaired by Chief Tony Alexis of Alexis Nakota Sioux Nation, which is to announce details of its intended bid today.Iron Coalition says it is the only Alberta group mandated by the Assembly of Treaty Chiefs to pursue the stake and is inviting all First Nations and Metis communities in the province to join in.Gottfriedson, a former chief of the Tk’Emlups te Secwepemc First Nation and a former B.C. regional chief for the Assembly of First Nations, says Project Reconciliation’s business model is more “inclusive” because it wants to enlist Indigenous groups from B.C., Alberta and Saskatchewan in its $6.8-billion bid for a 51 per cent stake in the pipeline project.Finance Minister Bill Morneau has said the federal government won’t negotiate the sale of the pipeline it bought for $4.5 billion last summer until after construction of its proposed expansion is “de-risked,” without saying what that means. The CBC reported he met with Iron Coalition in March.The government is to make a final decision on whether the delayed expansion can proceed by June 18.“For me, it’s good for them (Iron Coalition). I think we knew going in it would be a competitive field to be involved in,” said Gottfriedson.“At the end of the day, the No. 1 goal is to get the product to the market.”The Canadian Press read more