Dynagas LNG Partners LP -- Arctic Aurora Acquisition
April 24 2014 - 4:01PM
Marketwired
Dynagas LNG Partners LP -- Arctic Aurora Acquisition
ATHENS, GREECE--(Marketwired - Apr 24, 2014) - Dynagas LNG
Partners LP (NASDAQ: DLNG) (the "Partnership") announced today that
it has entered into an agreement to purchase from Dynagas Holding
Ltd., the Partnership's sponsor, 100% of the ownership interests in
the entity that owns and operates the Arctic Aurora, a
2013 built ice class liquefied natural gas carrier, for an
aggregate purchase price of $235 million. The Arctic
Aurora acquisition is subject to the Partnership obtaining the
funds necessary to pay the purchase price and the satisfaction of
certain closing conditions. The Partnership expects to finance
the acquisition with the net proceeds of a public offering of its
common units and a portion of the borrowings under a new $340
million senior secured revolving credit facility.
The Arctic Aurora is currently operating under a time
charter with Statoil ASA ("Statoil") with an initial term of five
years that expires in July 2018. Statoil has the right to
extend the charter for consecutive additional one-year periods
following the initial charter period. The Partnership's average
remaining charter term, based on an expected delivery date for the
Arctic Aurora of May 30, 2014 and taking into account the
recently announced 13-year time-charter contract with Gazprom
Marketing & Trading Singapore Pte. Ltd. for the Clean
Force, will be 6.1 years.
The Partnership believes that the Arctic Aurora
acquisition is an accretive transaction consistent with its growth
strategy. The Arctic Aurora acquisition will
generate, assuming full utilization, total contracted gross revenue
of approximately $117.2 million, annual gross revenues of
approximately $28.3 million and annual net cash from operations of
approximately $21.7 million, during the initial charter period with
Statoil. The Board of Directors of the Partnership and the
Conflicts Committee of the Board have approved the Arctic
Aurora acquisition.
Following the completion of this acquisition, the Partnership's
management intends to recommend to the Board an increase in the
Partnership's quarterly cash distribution per unit of between
$0.0225 and $0.0275 (or annualized increase of between $0.09 and
$0.11 per unit), which would become effective for the distribution
with respect to the quarter ending June 30, 2014 on a pro-rata
basis after giving effect to the Arctic Aurora
acquisition. Any such increase would be conditioned upon,
among other things, the closing of the Arctic Aurora
acquisition, the approval of such increase by the Board and the
absence of any material adverse developments or potentially
attractive opportunities that would make such an increase
inadvisable.
About Dynagas LNG Partners LP Dynagas LNG Partners LP (NASDAQ:
DLNG) is a growth-oriented partnership formed by Dynagas Holding
Ltd. to own, and operate liquefied natural gas ("LNG") carriers
employed on multi-year charters. The current fleet of Dynagas LNG
Partners consists of three LNG carriers, each of which has a
carrying capacity of approximately 150,000 cbm.
Visit the Partnership's website at www.dynagaspartners.com
Forward-Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Partnership desires to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and is including this cautionary statement in connection with this
safe harbor legislation. The words "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "expected", "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press release are based
upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, examination by
the Partnership's management of historical operating trends, data
contained in its records and other data available from third
parties. Although the Partnership believes that these assumptions
were reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond the Partnership's
control, the Partnership cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors
that, in the Partnership's view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for Liquefied Natural Gas
(LNG) shipping capacity, changes in the Partnership's operating
expenses, including bunker prices, drydocking and insurance costs,
the market for the Partnership's vessels, availability of financing
and refinancing, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due
to accidents or political events, vessel breakdowns and instances
of off-hires and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion
of these and other risks and uncertainties. The information set
forth herein speaks only as of the date hereof, and the Partnership
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
Contact Information: Dynagas LNG Partners LP 97 Poseidonos
Avenue & 2 Foivis Street Glyfada, 16674 Greece Attention:
Michael Gregos Telephone: (011) 30 210 8917260 Email:
management@dynagaspartners.com Investor Relations / Financial
Media: Nicolas Bornozis President Capital Link, Inc. 230 Park
Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail:
dynagas@capitallink.com
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