Dynagas Buys LNG Carrier Lena River

Dynagas LNG Partners LP, an owner and operator of LNG carriers, has signed an agreement with Dynagas Holding Ltd., the company’s sponsor, to acquire the 155,000 cubic meter ice class liquefied natural gas carrier Lena River, for USD 240 million.

The 2013-built tanker is currently operating under a charter contract with Gazprom Global LNG Limited, which has an initial term of five years and expires in October 2018.

Dynagas LNG Partners estimates that the Lena River will generate approximately USD 86.6 million of incremental contracted revenues over its remaining minimum charter term, assuming full utilization, and approximately USD 24.8 million of estimated net cash from operations for the first 12 months after the closing of the acquisition, expected to take place on or before December 31, 2015.

“In this short period of two years we have doubled the size of our fleet and increased our cash distributions per common and subordinated unit at a cumulative annualized level consistent with the targets we set out to achieve. In addition our contracted cash flows provide sufficient comfort to support our belief that the aforementioned proposed distributions to our unitholders are sustainable,” Tony Lauritzen, Chief Executive Officer of the Partnership, said.

Dynagas LNG Partners said that the acquisition will be financed with some USD 72 million from the net proceeds of its underwritten offering, approximately USD 133 million from the borrowings under a new USD 200 million senior term loan facility with a group of lenders, and USD 35 million from credit financing provided by the sponsor.

In early 2016, the partnership plans to draw down and utilize the remaining available borrowings under the USD 200 million term loan facility of approximately USD 67 million to repay the sponsor credit financing and for working capital purposes.

Share this article

Follow World Maritime News

In Depth>


<< May 2019 >>
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >