Dorian LPG Repays Bridge Loan, Sheds Light on Talks with BW LPG

U.S.-based gas carrier owner and operator Dorian LPG, which has been under the spotlight after it refused BW LPG’s takeover offer, has completed three financing agreements worth USD 65.1 million.

The net proceeds from the batch have been used to refinance the shipowner’s loan facility with DNB Capital LLC.

 “Dorian LPG is well positioned to perform through the cycle, including upcoming environmental regulations, with a well-capitalized balance sheet and a fleet of modern fuel efficient VLGCs that have delivered premium returns,” John Hadjipateras, Chairman and Chief Executive Officer of Dorian LPG, said.

In the latest turn of events, BW LPG has called Dorian to return to the negotiating table saying that a number of the company’s shareholders, other than the BW Group, supported the deal. Hadjipateras explained that these shareholders represent less than 5% of the company’s outstanding shares.

“In contrast, our board, whose members are beneficial owners of more than 25% of our outstanding shares, has unanimously concluded that BW LPG’s proposal undervalues Dorian and is not in the best interests of Dorian and its shareholders. To cite a few key financial metrics, the proposed transaction would be dilutive to Dorian’s shareholders’ earnings in 2018, would create a more leveraged enterprise from Dorian’s perspective and fails to recognize that Dorian’s equity contribution to the combined enterprise would exceed 50% of the total, based on 2018 relative EBITDA and existing debt levels,” he said.

Commenting on the call to resume talks, Hadjipateras said Dorian never declined to engage with BW LPG. However, the company is more interested in discussing the acquisition of BW LPG’s ECO-ships.

“Our board is always open to opportunities that would enhance value for our shareholders and we are in regular communication with them. BW LPG’s wish to have Dorian’s shareholders subsidize its fleet renewal is not a reason compelling enough to divert us from our strategy to serve our own shareholders,” he concluded.