Gaslog launches $1.05bn in debt-financing

20 June 2016 (Last Updated June 20th, 2016 18:30)

Monaco-based owner and operator of liquefied natural gas (LNG) carriers GasLog has launched a debt financing of $1.05bn with various international banks to re-finance six legacy vessel facilities.

Monaco-based owner and operator of liquefied natural gas (LNG) carriers GasLog has launched a debt financing of $1.05bn with various international banks to re-finance six legacy vessel facilities.

The legacy facility re-financing programme includes eight on-the-water vessels, which were delivered between 2010 and 2015.

The concerned eight vessels are GasLog Savannah, GasLog Singapore, GasLog Chelsea, GasLog Skagen, GasLog Seattle, Solaris, GasLog Saratoga and GasLog Salem.

"I am delighted to announce this re-financing, which simplifies GasLog’s bank facilities and aligns the terms and covenants across our four facilities."

GasLog chief financial officer Simon Crowe said: "I am delighted to announce this re-financing, which simplifies GasLog’s bank facilities and aligns the terms and covenants across our four facilities.

"The Legacy Facility Re-financing further extends GasLog’s maturities, strengthens the balance sheet and creates additional liquidity for the company as we look to pursue a number of interesting growth opportunities in the LNG carrier and FSRU sectors."

The debt financing covers re-financing of $960m of bank debt across six legacy facilities.

GasLog also noted that the new financing also includes a $100m revolving credit facility creating additional liquidity and a tenor of five years, which extends the maturity of the existing facilities to 2021.

Additionally, the re-financing, which is in line with GasLog’s existing facilities, is expected to be completed early in the second half of this year.

After the completion of the financing, the company will have four debt facilities in total.

Currently, GasLog has a fleet of 18 LNG carriers, including 11 ships in operation and seven LNG carriers on order. The company has also four LNG carriers operating under its technical management for third parties and a vessel secured under a long-term bareboat charter from Lepta Shipping, a subsidiary of Mitsui.

In February this year, GasLog had entered into binding agreements with GasLog Partners for the re-financing of six vessels, representing all debt maturities for both entities due in this year and next year.