GasLog Partners acquires GasLog Glasgow
GasLog Partners has agreed the GasLog Glasgow liquefied natural gas carrier from its parent company GasLog for $214 million.
The GasLog Glasgow is a 174,000 cubic meter tri-fuel diesel electric liquefied natural gas (LNG) carrier built in 2016 and operated by GasLog since delivery.
The vessel is currently on a multi-year time charter with Shell through June 2026. Shell has the option to extend the charter for a period of five years, the partnership said in its statement.
Andy Orekar, CEO of GasLog Partners, stated, “This 2016-built vessel is highly complementary to our strategy and its charter to Shell provides over seven years of stable cash flows at attractive fixed charter terms.”
The acquisition expands the partnership’s fleet to 15 wholly-owned LNG carriers, Orekar said adding that it would also increase the partnership’s contracted days to approximately 92 percent for 2019 and 74 percent for 2020.
Paul Wogan, CEO of GasLog, said, “we continue to execute on our strategy of dropping vessels into GasLog Partners in order to recycle capital back to GasLog to fund our capital programme.”
Since the inception of the partnership in 2014 GasLog had a dropdown pipeline of 12 vessels with multi-year charters and has sold 12 vessels to the partnership, Wogan said.
“Today, our pipeline of future growth opportunities for GasLog Partners is 11 vessels. With the equity recycled to GasLog, we remain solidly on track to deliver on our target to more than double our consolidated run-rate EBITDA by 2022,” the CEO said.
GasLog Partners expects to finance the acquisition from its available sources of liquidity, including proceeds from its Series C units issued in November 2018, and the assumption of the GasLog Glasgow’s $134 million of existing debt.
The acquisition is expected to close early in the second quarter of 2019 and is subject to the satisfaction of certain customary closing conditions.