GasLog To Purchase LNG Carriers From BG Group

(RTTNews) - GasLog Ltd. (GLOG) Wednesday announced an agreement with Methane Services Ltd. ("MSL"), an affiliate of BG Group, to purchase three LNG carriers from MSL's fleet and to charter those ships back to MSL for six-year initial terms. MSL also will have options to extend the term of the time charters for two of the ships for a period of either three or five years at its election.

The ships to be acquired will be nominated by MSL from an agreed group of six sister ships built in 2006 and 2007. GasLog supervised the construction of all six ships and has provided technical management for the ships since delivery. The aggregate cost to GasLog for the ships is expected to be about $468 million.

Each LNG carrier to be acquired is modern, steam powered and has a capacity of 145,000 cubic meters. The company estimates that upon their acquisition, these ships will represent approximately $426.3 million of incremental contracted revenue over their initial charter terms and add over $50.0 million per annum to GasLog's EBITDA.

The closing of the transaction is subject to the satisfaction of certain conditions, including the completion of definitive documentation and necessary financing. GasLog expects the transaction to close in the first or second quarter of 2014.

In connection with the transaction, GasLog has obtained commitments from Citibank, N.A. London Branch for a $325.5 million credit facility and a bridge loan facility. Although GasLog has obtained the bridge loan facility to maximize transactional certainty, it may pursue one or more alternative capital-raising transactions to fund a portion of the vessel purchase price, in which case it would not expect to borrow under the bridge loan facility.