Dynagas LNG Partners adds to its fleet

Dynagas LNG Partners, an owner and operator of LNG carriers, has entered into an agreement to buy the Yenisei River LNG tanker for about $257.5 million. 

The company will purchase the 2013 built ice class vessel and the related time charter contract from Dynagas Holding, the partnership’s sponsor, it said in a statement.

Closing of the acquisition of the Yenisei River is expected to take place on or before September 30.

The partnership expects to finance this acquisition with the net proceeds of its recently completed $250 million public offering of senior unsecured notes due 2019 and available cash on hand.

The Yenisei River is currently operating under a time charter with Gazprom Global LNG with an initial term of five years that expires in July 2018.

After giving effect to the acquisition of the Yenisei River and based on a scheduled delivery date of September 30, 2014, the partnership’s average remaining charter term would be 5.4 years and the average age of the fleet would be 4.7 years, the statement said.

Press Release, September 24, 2014; Image: Gazprom