Dynagas LNG: Underwriters Exercise Option
Dynagas LNG Partners said that, in connection with its previously announced underwritten public offering of 4,800,000 common units representing limited partner interests at S22.79 per common unit, the underwriters exercised in full the option granted to them by Dynagas Partners and purchased an additional 720,000 common units on the same terms on which the 4,800,000 common units were sold to the underwriters.
The company also announced that the closing of the public offering and the closing of the option to purchase additional common units took place simultaneously today.
Dynagas Partners intends to use the net proceeds from the public offering of 5,520,000 common units to fund a portion of the purchase price of its previously announced acquisition of the ownership interests in the company that owns the 2013 built ice class liquefied natural gas carrier Arctic Aurora from Dynagas Holding Ltd., Dynagas Partners’ sponsor. Dynagas Partners intends to fund the balance of the purchase with a new $340 million senior secured revolving credit facility which Dynagas Partners plans to enter prior to the closing of the Acquisition.
The new S340 million senior secured revolving credit facility will also be used to refinance $214.1 million currently outstanding under Dynagas Partners’ existing senior secured revolving credit facility.
Press Release, June 19, 2014; Image: Dynagas