U.S. Taxation Rules on PTPs Do Not Affect Capital Product Partners L.P.'s Unit Holders

Rhea-AI Summary

Capital Product Partners L.P. (CPLP) announced that new U.S. Treasury Regulations, effective January 1, 2023, will not impact its unitholders. These regulations typically require non-U.S. brokers to withhold taxes on proceeds from sales of publicly traded partnership interests. However, since CPLP has elected to be taxed as a corporation, its interests are exempt from these rules. The partnership currently owns 20 vessels and has plans to acquire additional vessels expected to be delivered in early to mid-2023.

Positive

• CPLP interests are exempt from new U.S. Treasury Regulations, ensuring no additional tax burden on unitholders.
• The partnership currently owns 20 vessels, indicating strong asset backing.
• CPLP plans to acquire additional vessels expected to deliver in early to mid-2023, enhancing fleet capabilities.

Negative

• None.

ATHENS, Greece, Dec. 16, 2022 (GLOBE NEWSWIRE) -- Capital Product Partners L.P. (the “Partnership”, “CPLP” or “we” / “us”) (NASDAQ: CPLP), an international owner of ocean-going vessels, announced today that U.S. Treasury Regulations that come into effect on January 1, 2023, will not affect its unitholders. The regulations require brokers to withhold on gross proceeds received by a non-U.S. person from the sale of an interest in a publicly traded partnership which is taxed as a partnership for U.S. federal income tax purposes (“PTP”). As a result of these regulations, certain non-U.S. brokers may not permit non-U.S. persons to hold such PTP interests in their brokerage account. The Partnership is a publicly traded partnership that has elected to be taxed as a corporation for U.S. federal income tax purposes. Therefore, interests in the Partnership are not subject to these regulations. Please refer to http://ir.capitalpplp.com/ for further information.

About Capital Product Partners L.P.
Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands master limited partnership, is an international owner of ocean-going vessels. CPLP currently owns 20 vessels, including six latest generation LNG/Cs, ten Neo-Panamax container vessels, three Panamax container vessels and one Capesize bulk carrier vessel. This excludes two 13,278 TEU container vessels and one LNG/C that CPLP has agreed to acquire and expected to be delivered between the first quarter of 2023 and the second quarter of 2023.

Contact Details:

Capital GP L.L.C.
Jerry Kalogiratos
CEO
Tel. +30 (210) 4584 950
E-mail: j.kalogiratos@capitalpplp.com 

Capital GP L.L.C.
Nikos Kalapotharakos
CFO
Tel. +30 (210) 4584 950
E-mail: n.kalapotharakos@capitalmaritime.com 

Investor Relations / Media
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. +1-212-661-7566
E-mail: cplp@capitallink.com 

Source: Capital Product Partners L.P.

FAQ

What are the new U.S. Treasury Regulations affecting CPLP?

The new regulations, effective January 1, 2023, require non-U.S. brokers to withhold taxes on gross proceeds for certain publicly traded partnerships. However, CPLP is exempt because it is taxed as a corporation.

How will the new regulations affect unitholders of Capital Product Partners?

The new regulations will not affect unitholders of Capital Product Partners as the partnership's interests are exempt from these withholding requirements.

What is the current fleet size of Capital Product Partners?

Capital Product Partners currently owns 20 vessels, including various types of container and bulk carrier vessels.

When does CPLP expect to acquire new vessels?

CPLP expects to acquire additional vessels, which are scheduled for delivery between the first and second quarters of 2023.