The new company will be called Diamond S Shipping Inc., and will be one of the largest shipping companies. It will also be listed on the New York Stock Exchange and will have its headquarters in Greenwich, Connecticut.
Capital will continue as a master limited partnership, with a fleet under medium- to long-term charters. It will also take part in asset acquisitions across different shipping segments, in order to grow its per unit distributable cash flow.
Capital will receive $23 million in consideration in the form of about 3% incremental ownership in Diamond S Shipping Inc. Based on the transaction Capital unitholders will initially own 33% and DSS equity owners will initially own approximately 67% of the new company.
In addition, Capital will contribute its product and crude vessels, $10 million in cash and associated inventories to Diamond S Shipping Inc. and distribute Diamond S Shipping Inc.’s common shares on a pro rata basis to all record holders of its common and general partner units.
Finally, the new company will have a total of 68 tankers, while Capital will contribute 22 MR tankers and 3 Suezmaxes.