Dynagas Announces LNG Carrier Acquisition For $257.5 Mln - Quick Facts

(RTTNews) - Dynagas LNG Partners LP (DLNG ) ( the "Partnership") Tuesday agreed to buy from Dynagas Holding Ltd, all of the ownership interests in the entity that owns the Yenisei River, a liquefied natural gas carrier, for an aggregate purchase price of $257.5 million.

Closing of the deal is expected to take place on or before September 30, 2014.

The Partnership expects to finance the deal with the net proceeds of its recently completed $250 million public offering of senior unsecured notes due 2019 and available cash on hand.

The Yenisei River is currently operating under a time charter with Gazprom Global LNG Limited with an initial term of five years that expires in July 2018.

The Partnership believes that the Yenisei River deal is an accretive transaction consistent with its growth strategy. The deal will generate, assuming full utilization, annual net cash from operations of about $25 million.

Following the completion of the deal, the Partnership intends to recommend to the board an increase in its quarterly cash distribution per unit of between $0.03 and $0.035.