Dynagas LNG Partners LP Announces Entry Into $675 Million Senior Secured Term Loan, Repayment Of $470 Million Senior Secured ...
September 19 2019 - 8:00AM
Dynagas LNG Partners LP (the “Partnership”) (NYSE: DLNG), an
international owner and operator of liquefied natural gas (LNG)
carriers, announced today that it has entered into definitive
documentation with leading international banks (collectively, the
"Lenders") for a syndicated $675 million senior secured term loan
(the “Credit Facility”). The Credit Facility will be secured by,
among other things, first priority mortgages on the six LNG
carriers in the Partnership's fleet.
Borrowings under the Credit Facility, together
with cash on hand, will be utilized to repay in full the
Partnership's existing indebtedness, consisting of the
Partnership's outstanding $470 million Senior Secured Term Loan B
upon closing of the Credit Facility and the $250 million aggregate
principal amount under the Partnership’s 6.25% senior unsecured
notes upon its maturity date of 30th of October 2019 (the “Existing
Indebtedness”).
The Credit Facility is repayable over five years
in 20 consecutive quarterly payments (plus a balloon payment in
year five) based on a 14 year amortization profile and has a margin
of LIBOR plus 300 basis points. The terms of the Credit
Facility include financial covenants providing for the maintenance
of maximum leverage ratios and minimum liquidity covenants,
including the requirement for the Partnership to maintain a minimum
cash balance of $50 million throughout the life of the Credit
Facility in a restricted collateral account.
Under the terms of the Credit Facility, the
Partnership will be restricted from paying distributions to its
common unit-holders while borrowings are outstanding under the
Credit Facility. Scheduled distributions to the preferred
unit-holders under the existing Series A Preferred Units and Series
B Preferred Units will not be restricted provided there is no event
of default while the Credit Facility remains
outstanding.
The Partnership expects the financing to close
before the end of September, subject to customary closing
conditions.
Tony Lauritzen commented: "We are pleased to
enter into this transformative re-financing. The Credit Facility
provides the Partnership with reduced cost of debt relative to the
existing one and a simplified debt structure with a clear and
viable path towards deleveraging through a significant increase in
debt amortization. The Partnership has in place long term charter
contracts with international energy companies, generating cash
flows that will be channeled towards the amortization requirements
of the Credit Facility, building equity value over time. As a
result of this global refinancing and broader strategic
realignment, the Partnership is better positioned for future growth
initiatives as global LNG markets continue their robust
development."
About Dynagas LNG Partners
LP
Dynagas LNG Partners LP is a growth-oriented
master limited partnership formed by Dynagas Holding Ltd., its
sponsor, to own and operate liquefied natural gas (“LNG”) carriers
employed on multi-year charters. The Partnership’s current fleet
consists of six LNG carriers, with aggregate carrying capacity of
approximately 914,000 cubic meters.
Visit the Partnership’s website at
www.dynagaspartners.com.
Contact Information: Dynagas
LNG Partners LP23, Rue Basse, 98000 MonacoAttention: Michael
GregosTel. +377 99996445Email: management@dynagaspartners.com
Investor Relations / Financial
Media:Nicolas BornozisMarkella KaraCapital Link, Inc.230
Park Avenue, Suite 1536 New York, NY 10169Tel. (212)
661-7566E-mail: dynagas@capitallink.com
Forward-Looking
StatementsMatters 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 U.S. 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.
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