GasLog has signed an agreement with BG Group affiliate Methane Services (MSL) to purchase three liquefied natural gas (LNG) carriers from the company’s fleet.
GasLog will charter the ships back to MSL following six-year initial terms. MSL can extend the term of the charters for two of the ships three and five years into the contract.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
MSL will nominate the ships to be acquired from an agreed group of six sister ships built in 2006 and 2007. GasLog supervised the construction of all six ships, and has also provided technical management for the ships since delivery.
Each steam-powered LNG carrier has a capacity of 145,000m³. Following acquisition, the ships are expected to represent approximately $426.3m of incremental contracted revenue over their initial charter terms and add over $50m annually to GasLog’s earnings before interest, taxes, depreciation, and amortisation (EBITDA).
GasLog CEO Paul Wogan said that the company expects the transaction to be accretive to its earnings and also support increased dividend capacity.
"We know these ships well, having supervised their construction and technically operated them since their delivery from Samsung Heavy Industries," Wogan added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe transaction is expected to close in the first or second quarter of 2014. GasLog has obtained commitments from Citibank for a $325.5m credit facility and a bridge loan facility to carry out the transaction.
