Costamare Partners LP, a growth MLP carved out of Costamare to own four modern containerships, filed on Thursday with the SEC to raise up to $100 million in an initial public offering.
Operations
The company will operate an initial fleet of four vessels with an average remaining charter term of about 6.7 years. Three were built in 2013 (8,800 TEU capacity; $42,000 daily charter rate) and one was built in 2006 (9,500 TEU; $36,000). Its vessels are chartered to Mediterranean Shipping Company, Evergreen Marine Corporation Taiwan and Cosco Container Lines. The IPO candidate will also have the option to purchase ten more vessels from its parent within the next 12 months, and it may purchase joint venture interests in nine others.
Shippers and MLPs
Parent company Costamare has traded up over 75% from its December 2010 IPO, and entirely in post-IPO trading. 2014 has seen drybulk shipping and tanker IPOs, but Costamare Partners may be the first intermodal container shipper. It is one of several MLPs that have recently filed for an IPO, including PennTex Midstream (PTXP), Columbia Pipeline (CPPL), Mammoth Energy (TUSK), Hess Midstream (HESM), Exmar Energy (XMLP) and PES Logistics (PESL).
Financials
Revenue increased 102% during the six months ended June 30, 2014 due to the commencement of operations for its three newest vessels during 2013. EBITDA rose 115% to $24 million. The company estimates that it will distribute $34 million in cash during the 12 months ended December 31, 2015.
The Athens, Greece-based company, which was founded in 2014 and booked $59 million in sales for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol CMRP. Costamare Partners LP initially filed confidentially on August 1, 2014. Morgan Stanley, Barclays, Citi, Wells Fargo Securities, Credit Suisse and J.P. Morgan are the joint bookrunners on the deal. No pricing terms were disclosed.
