GasLog Closes First Option Vessels Dropdown

 

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea, to GasLog Partners LP for an aggregate price of $328 million (the “Transaction”). The purchase price was paid by a combination of cash and assumed debt.

This milestone transaction marks the first dropdown after the Initial Public Offering (“IPO”) in May of assets from GasLog to the Partnership and is a significant step for both companies.

GasLog continues to seek opportunities to grow its fleet through a combination of newbuildings and attractive, accretive acquisitions. The proceeds received from the dropping down of the vessels to the Partnership give GasLog the financial flexibility to expand the fleet further as and when appropriate.

With the completion of the Transaction, GasLog acknowledges that it is the intention of the Partnership’s management to recommend to its Board of Directors an increase in the quarterly distribution of between $0.05625 and $0.06250, an increase of approximately 15% above the existing minimum quarterly distribution and an annualized increase of between $0.225 and $0.250 per unit, which would become effective for the Partnership’s cash distribution with respect to the quarter ending December 31, 2014. Any such increase would be conditioned upon, among other things, the approval of such increase by the Partnership’s Board of Directors and the absence of any material adverse developments or potentially attractive opportunities
that would make such an increase inadvisable.

Paul Wogan, Chief Executive Officer of GasLog Ltd., commented: “This is a very significant transaction for GasLog as it validates our strategy for launching GasLog Partners in May of this year. In line with our stated objectives, we will look to drop additional vessels into GasLog Partners over time, and recycle capital back to GasLog, allowing us to grow our fleet into what we see as very strong markets for LNG shipping in the coming years. I am very pleased that with this first transaction after the IPO, the recommended increase in distribution will, if approved by the Board of Directors of the Partnership, move the incentive distribution rights (“IDRs”) into the first split, resulting in higher incremental distributions for GasLog.”

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.