LONDON, UK / ACCESSWIRE / March 23, 2018 / Active-Investors.com has just released a free research report on GasLog Partners L.P. (NYSE: GLOP) ("GLOP"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GLOP as the Company's latest news hit the wire. On March 21, 2018, the Company announced its decision to acquire LNG carrier GasLog Gibraltar from GasLog Ltd (NYSE: GLOG) ("CLOG") and payoff the entire $45 million unsecured term loan taken from GLOG. GLOP has agreed to pay $207 million for the LNG carrier. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Details of Acquisition of the LNG Carrier-GasLog Gibraltar
GLOP has agreed to acquire 100% shares of the entity that owns and charters LNG carrier GasLog Gibraltar. GLOP has agreed to pay $207 million including $1 million for positive net working capital balances to be transferred with the vessel. The deal has been approved by the Conflicts committee of GLOP's Board and the Board of Directors of both GLOP and GLOG. The acquisition is expected to be completed in Q2 2018 subject to fulfilment of all closing conditions.
Built in 2016, GasLog Gibraltar is a 174,000-cubic meter tri-fuel diesel electric liquefied natural gas (LNG) carrier which has been operated by GLOG since its delivery. A wholly owned subsidiary of Royal Dutch Shell plc (Shell) has currently taken the vessel on a long-term time charter which is valid till October 2023. Shell has the option to extend the charter for two consecutive times and if exercised the charter period would be further extended for period of five years or eight years.
Benefits of the Acquisition
GLOP believes that the acquisition of GasLog Gibraltar would be accretive to the Partnership's distributable cash flow per unit immediately. The acquisition is in-line with the Partnership's business strategy of increasing its cash distributions via dropdown and third-party acquisitions. The acquisition is also expected to add $22.4 million to GLOP's EBITDA within one year of closing the transaction. The deal will also help GLOP's guidance of maintaining 5% to 7% distribution growth in 2018 on a year-on-year basis.
Repayment of Unsecured Term Loan
GLOP has agreed to pay the entire $45 million unsecured term loan which it had taken from GLOG. This unsecured term loan from GLOG carried an interest rate of 9.125% per annum with an annual 1.0% commitment fee on the undrawn balance and was expected to mature in March 2022.
Comments from Management
Sharing his views on the current decisions, Andy Orekar, CEO of GLOP, said:
"I am very pleased to continue executing our growth strategy with the accretive acquisition of GasLog Gibraltar. This 2016-built vessel is highly complementary to our strategy and its charter to Shell provides approximately five and a half years of stable cash flows at attractive fixed charter terms. In addition, the repayment in full of our highest cost debt is immediately accretive to our distributable cash flow per unit and strengthens our balance sheet."
Paul Wogan, CEO of GLOG, commented:
"The receipt of newly issued, privately placed common units as partial consideration for these two transactions highlights the strong alignment of GP and LP interests and increases our ownership in the Partnership to approximately 30%. Through our unit ownership and incentive distribution rights, we will benefit from future increases in GasLog Partners' distributions, which should continue to enhance our cash flow, growth prospects and valuation."
About GasLog Ltd (GLOG)
GLOG is an international owner, operator, and manager of LNG carriers providing support to international energy companies as part of its LNG logistics chain. The Company's fleet includes 29 owned LNG carriers of which 24 vessels are in water and 5 vessels are on order. The fleet includes 9 LNG carrier vessels owed by its subsidiary GLOP. GLOG also has an additional LNG carrier which is being leased from a subsidiary of Mitsui Co. Ltd. under a long-term bareboat charter.
GLOG owns the general partner and limited partner units of GasLog Partners L.P.
About GasLog Partners L.P. (GLOP)
GLOP is a growth-oriented master limited Partnership focused on owning, operating, and acquiring LNG carriers under multi-year charters. On completion of the current deal, GLOP will have 13 LNG carriers in operation. These LNG carriers have an average carrying capacity of approximately 156,000 cbm.
Stock Performance Snapshot
March 22, 2018 - At Thursday's closing bell, GasLog Partners' stock marginally rose 0.43%, ending the trading session at $23.25.
Volume traded for the day: 161.70 thousand shares, which was above the 3-month average volume of 154.55 thousand shares.
Stock performance in the last month – up 0.22%; and previous three-month period – up 1.09%
After yesterday's close, GasLog Partners' market cap was at $952.55 million.
Price to Earnings (P/E) ratio was at 11.34.
The stock has a dividend yield of 8.82%.
The stock is part of the Services sector, categorized under the Shipping industry.
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