GasLog Completes Acquisition Of 3 LNG Carriers From BG Group; To Buy 3 More

(RTTNews) - GasLog Ltd. (GLOG) said Thursday that it has completed the acquisition of three LNG carriers from Methane Services Ltd., an affiliate of BG Group, which will be chartered back to Methane Services for six-year initial terms on average.

Methane Services 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.

GasLog also said that it has agreed to buy an additional three LNG carriers from Methane Services and to charter those ships back to Methane Services for six-year initial terms on average. Methane Services will also have 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 aggregate cost to GasLog for the three ships party to the deal announced Thursday is expected to be about $468 million.

GasLog expects the deal to close in the third quarter 2014.

Additionally, GasLog said that it plans to offer 4.25 million of its common shares to the public. The company plans to grant the underwriters of the offering a 30-day option to purchase up to 637,500 additional common shares.

GasLog plans to use the net proceeds of the public offering to fund a portion of the purchase price of its purchase of three LNG carriers from Methane Services announced today, and for general corporate purposes.