The company priced the public offering of the units at $10.53 a common unit. The underwriters of the offering have a 30-day option to buy an additional 2.25 million common units to cover any overallotments.
Capital Product partners will use part of the net proceeds to partially fund the purchase of two 5,000 dead weight product carriers. The company will also use the proceeds to repurchase about $60 million worth of common units from Capital Maritime & Trading, and for general corporate purposes.
TheStreet Ratings team rates CAPITAL PRODUCT PARTNERS LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAPITAL PRODUCT PARTNERS LP (CPLP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."