GasLog has completed the acquisition of three LNG carriers from Methane Services Ltd., an affiliate of BG Group, which will be chartered back to MSL for six-year initial terms on average. MSL has 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.
It was previously announced that each of the three vessels would be chartered back to MSL for a term of six years. However, following further discussions with BG Group, the time charters of the three vessels will be staggered with time charters of 5.5 years, 6 years and 6.5 years, so that the three vessels will not redeliver at the same time.
Paul Wogan, CEO of GasLog, commented “We are delighted to complete this accretive transaction and bring these vessels into the GasLog fleet. The acquisition increases the size of our wholly owned fleet to 18 vessels with 11 of these ships currently on the water. The transaction also further strengthens our long-standing relationship with BG Group.”
To complete the transaction, GasLog has drawn down on its $325.5 million credit facility with Citibank, N.A., London Branch, and satisfied the remainder of the $468 million consideration ($465 million of which was paid at closing) with cash raised in the follow-on equity offering completed in January 2014.