Milbank represented Meridian Spirit ApS, as issuer, in a $195 million bond refinancing for its liquefied natural gas (LNG) tanker vessel, the Meridian Spirit . Meridian Spirit ApS is a special purpose company owned by Teekay LNG Partners LP and Marubeni Corporation.
Moody’s rated the 17-year private placement Baa1 based on the Meridian Spirit ’s charter with Total’s Norwegian subsidiary, which is ongoing up to 2030. Proceeds from the issuance will refinance a portion of the bridge debt that the two sponsors utilized when they acquired the six-vessel Maersk LNG fleet in February 2012. The Meridian Spirit was built by Korea’s Samsung Heavy Industries and has a storage capacity of 165,500 cubic meters of LNG.
Dan Bartfeld, partner in Milbank’s Project Finance Group , co-led the Milbank team and commented, “ The extremely successful offering for the Meridian Spirit marks a significant milestone for Teekay and Marubeni and the private placement market, and illustrates the strong demand among institutional investors for well-structured LNG tanker and other oil and gas projects. We’re thrilled to have participated in this private placement for Teekay and Marubeni. ”
Structured Finance partner Jay Grushkin , who co-led the Milbank team along with Mr. Bartfeld, added, “ Milbank’s extensive experience in financings in the natural resources sector, coupled with our experience in private placement and bond financings, has provided us with the opportunity to work with world-class companies such as Teekay and Marubeni, who are looking to diversify their funding sources and look beyond traditional commercial bank financings. ”
Also working on the Meridian Spirit refinancing for Milbank were associates Mikhel Shechter and Sean O’Neill.
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LNG World News Staff, July 4, 2013; Image: Teekay