GasLog Partners To Buy Three Vessels For $483 Mln

(RTTNews) - GasLog Partners LP (GLOP) and GasLog Ltd (GLOG) on Monday announced that they have entered into an agreement for the Partnership to purchase from GasLog, the sole member of the Partnership's general partner, 100% of the shares in the entities that own and charter the Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally, for an aggregate purchase price of $483 million.

The three vessels subject to the aquisition are modern liquefied natural gas carriers built in 2007, each with a capacity of 145,000 cubic meters.

The Partnership believes that the acquisition is immediately accretive and is consistent with the strategy to grow cash distributions for the unitholders through accretive dropdowns and third-party acquisitions.

The Partnership estimates that the vessels to be acquired will annually generate about $72 million of incremental contracted revenue over their initial charter terms, assuming full utilization.

Following the completion of the aquisition, the Partnership intends to recommend to the Board an increase in the Partnership's quarterly cash distribution per unit of between 7% to 10%.

The proposed increase would result in a cash distribution per unit of between $0.465 to $0.478 for the quarter ended September 30, 2015, or $1.86 to $1.91 on an annualized basis.

The acquisition adds about $352.9 million of contracted revenue for the first 12 months after the closing of the acquisition, assuming full utilization, the Partnership said.