Dynagas LNG Partners (DLNG) has entered into an agreement to purchase the Arctic Aurora, a 2013 built ice class LNG carrier, from Dynagas Holding, for a price of US$ 235 million.
The acquisition of the Arctic Aurora is subject to DLNG obtaining necessary funds to pay the purchase price and the satisfaction of certain closing conditions. DLNG expects to finance the acquisition with the net proceeds of a public offering and a portion of the borrowing under a new US£ 340 million senior secured revolving credit facility.
The Arctic Aurora is currently operating under a time charter with Statoil with an initial term of five years that expires in July 2018. Statoil has the right to extend the charter for consecutive additional one-year periods following the initial charter period. DLNG’s average remaining charter term, based on an expected delivery date for the Arctic Aurora of 30 May 2014, and taking into account the recently announced 13-year time-charter contract with Gazprom Singapore for the Clean Force, will be 6.1 years.
DLNG growth strategy
DLNG explained that the Arctic Aurora acquisition is consistent with the company’s growth strategy. The acquisition will generate total contracted gross revenue of approximately US$ 117.2 million, annual gross revenues of approximately US$ 28.3 million and annual net cash from operations of approximately US$ 21.7 million, during the initial charter period with Statoil.
Dynagas LNG’s current fleet consists of three LNG carriers, each with a capacity of approximately 150 000 billion m3.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/25042014/dynagas_lng_to_purchase_ice_class_carrier_480/