GasLog To Buy Two LNG Carriers From BG Group For $460 Mln - Quick Facts

(RTTNews) - GasLog Ltd. (GLOG), a Monaco-based operator of liquefied natural gas carriers, has reached a deal with Methane Services Ltd. or MSL, an affiliate of BG Group, to acquire two modern tri-fuel diesel electric or TFDE LNG carriers for $460 million. The two vessels, Methane Becki Anne and Methane Julia Louise, would be chartered back to BG for periods of 9 and 11 years with further options by the charterer to extend the term of the time charter for each vessel by either 3 or 5 years.

The nine and eleven year charters are very much in line with the firm's expectations. They add nearly $580 million of contracted revenue over the charter period and are likely to provide a combined annual EBITDA of some $46 million. Upon completion, the consolidated GasLog group would have total contracted revenues of about $3.3 billion.

Owing to the length of the charters, both vessels would be eligible for dropdown into GasLog Partners LP, potentially enhancing future distributions to GasLog in respect of its limited partner and general partner interests in GasLog Partners. On commencement of the charters the transaction is expected to be immediately accretive to Gaslog's earnings per share. The two vessels were built at Samsung Heavy Industries and delivered in 2010. GasLog supervised their construction and has technically managed both ships since delivery.

GasLog has obtained commitments from DNB Bank ASA, for a $325 million secured credit facility and a $135 million subordinated two-year loan facility at rates in line with recent GasLog financings. GasLog expects the transaction to close in the first quarter of 2015.