GasLog Takes Three More from BG

Business & Finance

GasLog Ltd. informed that it has completed the acquisition of three LNG carriers from an affiliate of BG Group Plc. (BG), previously announced on April 10, 2014.

This completes the second acquisition of ships from BG by GasLog in 2014. The acquisition of the first three vessels was announced in January and completed in April.

The three ships subject to today’s announcement will be chartered back to BG for six-year initial terms on average.

The time charters for the three vessels are staggered with one for 5.5 years, one for 6 years and one for 6.5 years, so that the three vessels will not redeliver at the same time.

BG 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.

The vessels have been delivered over the last month, with the following delivery dates:

  • Methane Alison Victoria – June 4, 2014
  • Methane Shirley Elisabeth – June 11, 2014
  • Methane Heather Sally – June 25, 2014

Paul Wogan, CEO of GasLog, said: “We know these ships well, having overseen their construction at the Samsung shipyard in Korea, and having managed them on behalf of BG since their delivery.

The acquisition increases the size of our wholly owned fleet to 22 vessels. The transaction also further strengthens our long-standing relationship with BG.”

To complete the transaction, GasLog has drawn down on its $325.5m credit facility with a syndicate of international banks, and covered the remainder of the $468m consideration with cash raised in the follow-on equity offering announced on April 10, 2014.