USA: Milbank Advises on Bond Refinancing of LNG Tanker Meridian Spirit

Milbank Advises on Bond Refinancing of LNG Tanker Meridian Spirit

Milbank represented Meridian Spirit ApS, as issuer, in a $195 million bond refinancing for its liquefied natural gas (LNG) tanker vessel, the Meridian Spirit. Meridian Spirit ApS is a special purpose company owned by Teekay LNG Partners LP and Marubeni Corporation.

Moody’s rated the 17-year private placement Baa1 based on the Meridian Spirit’s charter with Total’s Norwegian subsidiary, which is ongoing up to 2030. Proceeds from the issuance will refinance a portion of the bridge debt that the two sponsors utilized when they acquired the six-vessel Maersk LNG fleet in February 2012. The Meridian Spirit was built by Korea’s Samsung Heavy Industries and has a storage capacity of 165,500 cubic meters of LNG.

Dan Bartfeld, partner in Milbank’s Project Finance Group, co-led the Milbank team and commented, “The extremely successful offering for the Meridian Spirit marks a significant milestone for Teekay and Marubeni and the private placement market, and illustrates the strong demand among institutional investors for well-structured LNG tanker and other oil and gas projects. We’re thrilled to have participated in this private placement for Teekay and Marubeni.

Structured Finance partner Jay Grushkin, who co-led the Milbank team along with Mr. Bartfeld, added, “Milbank’s extensive experience in financings in the natural resources sector, coupled with our experience in private placement and bond financings, has provided us with the opportunity to work with world-class companies such as Teekay and Marubeni, who are looking to diversify their funding sources and look beyond traditional commercial bank financings.

Also working on the Meridian Spirit refinancing for Milbank were associates Mikhel Shechter and Sean O’Neill.


LNG World News Staff, July 4, 2013; Image: Teekay