Owner and operator of LNG carriers Dynagas LNG Partners is currently in discussions with financial institutions for a USD 250 million refinancing.
Namely, the talks are ongoing for the refinancing of the company’s 6.25% USD 250 million senior unsecured, nonamortizing notes, which are due on October 30, 2019, Dynagas LNG Partners said in its latest financial report.
“We are in an advanced stage with commercial banks and other capital sources for a potential financing transaction which, among other things, may provide funding for the payment due on the maturity date of our 2019 Notes, and/or Term Loan B, or a combination of the foregoing,” Tony Lauritzen, Chief Executive Officer of Dynagas LNG Partners, said.
The company informed that its underlying charter business “remains healthy” as its fleet of six LNG carriers are all contracted on charters to international gas producers with an average remaining duration of 9.3 years.
“We believe in the positive long term fundamentals of the LNG shipping industry as the production of LNG continues to grow and natural gas continues to gain market share as a reliable, abundant, price competitive and relatively cleaner energy resource,” Lauritzen added.
For the period ended March 31, 2019, the company delivered a net income of USD 1.9 million, representing a drop of 60.4% compared to a net income of USD 4.8 million reported in the same quarter of 2018.
The change was mainly attributable to the decrease in revenues and increase in operating expenses during the period, and the increases in U.S. Libor rates, which correspondingly, increased the partnership’s interest and finance costs with respect to the USD 480 million senior secured term loan.