GasLog Partners LP and GasLog Ltd (GasLog) have recently announced that they have entered into an agreement for GasLog Partners to purchase 100% of the shares in three LNG vessels – the Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally – from GasLog, the sole member of the GasLog Partners’ general partner. The total purchase price is US$483 million, which includes US$3 million for positive net working capital balances to be transferred with the vessels.
The three vessels are modern LNG carriers built in 2007, each with a capacity of 145 000 m3. The acquisition is subject to GasLog Partners obtaining the necessary funds to pay the purchase price and the satisfaction of certain other closing conditions. GasLog Partners expects to finance the acquisition with a combination of equity and the assumption of the vessels’ existing credit facilities.
GasLog acquired the Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally from an affiliate of BG Group in June 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 terms of four and a half years, five years and five and a half years remaining, respectively. BG has the option to extend two of the three charters for an additional period of either three or five years, following the initial charter period.
Assuming full utilisation, GasLog Partners estimates that the vessels to be acquired will generate approximately US$72 million of incremental contracted revenue annually over their initial charter terms. Approximately US$50.8 million of EBITDA is estimated for the first 12 months after the closing of the acquisition.
Andy Orekar, Chief Executive Officer of GasLog Partners, said: “I am very pleased to be announcing our second accretive dropdown acquisition since our IPO in 2014. The addition of these three vessels will significantly increase the size of the GasLog Partners’ fleet from five to eight vessels, increasing the scale and equity free float of the partnership, which we believe will enhance the trading liquidity in the partnership’s units.”
“Following this transaction, GasLog Partners continues to have an identified dropdown pipeline of twelve additional vessels at GasLog, providing a highly visible path to sustainable growth. We believe GasLog Partners is well positioned to execute our strategy and continue growing cash distributions for our unitholders at a 10 - 15% CAGR from the IPO for the next several years.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/23062015/gaslog-partners-announces-acquisition-of-three-vessels-from-gaslog-ltd-938/