GasLog Partners to buy LNG duo from GasLog
GasLog Partners have entered into an agreement to purchase from GasLog, its parent company, 100% of the shares in the entities that own and charter the Methane Jane Elizabeth and Methane Rita Andrea, modern LNG carriers built in 2006, each with a capacity of 145,000 cubic meters. The purchase price is about $328 million.
The acquisition is subject to the partnership obtaining the funds necessary to pay the purchase price and the satisfaction of certain other closing conditions, GasLog Partners said in a statement.
The partnership expects to finance the acquisition with a combination of equity and the assumption of the vessels’ existing credit facilities. In addition, the partnership has entered into a commitment letter with Citibank for a new $450 million credit facility to refinance the current credit facilities of the vessels currently owned by the partnership as well as the facilities for the two LNG carriers being acquired.
GasLog acquired the Methane Jane Elizabeth and Methane Rita Andrea from an affiliate of BG Group in April 2014. GasLog supervised the construction of each ship and has provided technical management for the ships since delivery. The vessels are currently operating under long-term time charters with BG with initial terms of 5.5 and 6 years, respectively (through October 2019 and April 2020). BG has the option to extend either or both of the charters for an additional period of either three or five years following the initial charter period.
The acquisition is a significant milestone for GasLog Partners and GasLog as it marks the first transaction carried out by the two entities since GasLog Partners’ initial public offering (IPO) in May 2014, the company added.
Press Release, August 14, 2014; Image: BG