GasLog completes acquisition of BG LNG carriers
Published by Callum O'Reilly,
Senior Editor
LNG Industry,
GasLog Ltd has successfully completed the acquisition of three LNG carriers from an affiliate of BG Group plc, which was previously announced in April.
The deal completes the second acquisition of ships from BG by GasLog in 2014. The acquisition of the first three vessels was announced in January and completed in April.
The three LNG carriers will be chartered back to BG for six-year initial terms on average. The time charters for the three LNG carriers are staggered with one for 5.5 years, one for 6 years and one for 6.5 years, so that the three LNG carriers will not redeliver at the same time.
BG has options to extend the term of the time charters for two of the LNG carriers for a period of either three or five years at its election.
Paul Wogan, CEO of GasLog, said: “We are delighted to complete this second transaction with BG which adds further accretive growth to GasLog’s business. We know these ships well, having overseen their construction at the Samsung ship yard in Korea and managed them on behalf of BG since their delivery. The acquisition increases the size of our wholly owned fleet to 22 vessels with eleven of these ships currently on the water. The transaction also further strengthens our long-standing relationship with BG.”
To complete the transaction, GasLog has drawn down on its US$ 325.5 million credit facility with a syndicate of international banks, and satisfied the remainder of the US$ 468 million consideration with cash raised in the follow-on equity offering announced in April.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/25062014/gaslog_completes_acquisition_of_bg_lng_carriers_848/
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