GasLog Limited has entered into an agreement with BG Group affiliate, Methane Services Limited (MSL), to acquire two modern tri-fuel diesel electric (TFDE) LNG carriers for US$460 million.
The two vessels, Methane Becki Anne and Methane Julia Louise, will be chartered back to BG for periods of nine and eleven years with further options by the charterer to extend the term of the time charter for each vessel by either three or five years.
The nine and eleven year charters are very much in line with GasLog’s expectations. They add approximately US$580 million of contracted revenue over the charter period and are expected to provide a combined annual EBITDA of approximately US$46 million. Upon completion of the acquisition, the consolidated GasLog Group will have total contracted revenues of approximately US$3.3 billion.
The two vessels were built at Samsung Heavy Industries and delivered in 2010. GasLog supervised their construction and has technically managed both ships since delivery. They have TFDE propulsion, a cargo capacity of 170 000 m3 and have onboard reliquefaction plants, which enable reduced consumption of natural gas at lower speeds.
In connection with the transaction, GasLog has obtained commitments from DNB Bank ASA, for a US$325 million secured credit facility and a US$135 million subordinated two-year loan facility at rates in line with recent GasLog financings.
Paul Wogan, CEO of GasLog, commented: “This is the third accretive transaction we have been fortunate enough to enter into with BG Group in 2014. The acquisition of these two latest modern LNG ships is a great start to the 40:17 strategy put forward at our recent investor conference. We believe this reaffirms our commitment to BG and their appreciation of GasLog as a long-term service provider to their growing LNG story.
“By agreeing fully funded debt financing for these ships it also demonstrates our ability to continue to do accretive deals as and when the opportunity arises without the need for additional equity at GasLog Ltd. These ships will be added to the Gaslog Partners drop down pipeline, extending the built-in growth for longer.
“Including this transaction, we will have added twelve ships to the GasLog fleet in 2014. We continue actively to develop additional opportunities and look forward to 2015 as a year that will see GasLog well on the way to achieving its stated goals.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/22122014/gaslog-acquires-lng-carriers-from-bg-group-1994/