TEEKAY LNG PARTNERS ANNOUNCES NEW LNG CHARTERS AND REFINANCING OF $225 MILLION UNSECURED CREDIT FACILITY
April 03 2020 - 12:02PM
Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP)
announced today that it has secured new fixed-rate charters for two
of its 52 percent-owned LNG carriers, a 12-month charter on the
Arwa Spirit and an eight-month charter on the Methane Spirit, both
of which are expected to commence upon completion and in direct
continuation of their existing contracts in May and July 2020,
respectively.
In addition, Teekay LNG has successfully
refinanced its existing $225 million unsecured revolving credit
facility, which was scheduled to mature in November 2020, with a
new two-year facility of the same amount and pricing consistent
with the previous facility of LIBOR + 140 bps.
“As we are an integral part of the world’s LNG
supply chain, all of our vessels have continued to operate as
expected under their existing fixed-rate contracts and I am pleased
to report that, with these two new fixed-rate contracts, our LNG
fleet is now 98 percent fixed though 2020 and 94 percent fixed for
2021,” commented Mark Kremin, President and CEO of Teekay Gas Group
Ltd. “The Partnership expects to continue to benefit from its
long-term contracted cash flow, and continue allocating capital in
a manner that focuses on delevering and strengthening its balance
sheet, while also returning capital to unitholders, including a 32
percent increase in our cash distribution to an annualized amount
of $1.00 per common unit effective for the first quarter of
2020.”
“We are also grateful for the continued strong
support we receive from our bank group, as represented by the
refinancing and closing of our $225 million unsecured revolving
credit facility with 13 major international banks, which provides
the Partnership with a strong consolidated liquidity position of
approximately $400 million and increased financial flexibility with
which to add value to our long-term unitholders.”
About Teekay LNG
Teekay LNG Partners is one of the world’s
largest independent owners and operators of LNG carriers, providing
LNG and LPG services primarily under long-term, fee-based charter
contracts through its interests in 47 LNG carriers, 23 mid-size LPG
carriers, and seven multi-gas carriers. The Partnership’s ownership
interests in these vessels range from 20 to 100 percent. In
addition, the Partnership owns a 30 percent interest in a
regasification terminal. Teekay LNG Partners is a publicly-traded
master limited partnership formed by Teekay Corporation (NYSE: TK)
as part of its strategy to expand its operations in the LNG and LPG
shipping sectors.
Teekay LNG Partners’ common units and preferred
units trade on the New York Stock Exchange under the symbols “TGP”,
“TGP PR A” and “TGP PR B”, respectively.
For Investor Relations
enquiries contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Forward-Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including statements,
among other things, regarding: the expiration dates of the existing
two charters and the commencement dates for the two new charters,
in each case in respect of the Arwa Spirit and Methane Spirit; the
Partnership’s percentage of fixed charter coverage for its LNG
fleet in 2020 and 2021; the Partnership’s ability to benefit from
its fixed contracts, including its two new charters; expectations
on future allocation of capital towards balance sheet deleveraging
and returning capital to unitholders; the ability to pay increased
distributions on its common units in 2020 and beyond; and the
Partnership’s ability to use existing liquidity and financial
flexibility to add value to unitholders. The following factors are
among those that could cause actual results to differ materially
from the forward-looking statements, which involve risks and
uncertainties, and that should be considered in evaluating any such
statement: changes in production of LNG or LPG, either generally or
in particular regions; changes in trading patterns or timing of
start-up of new LNG liquefaction and regasification projects
significantly affecting overall vessel tonnage requirements;
changes in applicable industry laws and regulations and the timing
of implementation of new laws and regulations; the potential for
early termination of long-term contracts of existing vessels in the
Partnership's fleet; higher than expected costs and expenses;
general market conditions and trends, including spot, multi-month
and multi-year charter rates; inability of customers of the
Partnership or any of its joint ventures to make future payments
under contracts; potential further delays to the formal
commencement of commercial operations of the Bahrain Regasification
Terminal; the inability of the Partnership to renew or replace
long-term contracts on existing vessels; potential lack of cash
flow to reduce balance sheet leverage or of excess capital
available to allocate towards returning capital to unitholders; the
duration and extent of the COVID-19 coronavirus pandemic; and
other factors discussed in Teekay LNG Partners’ filings from time
to time with the SEC, including its Report on Form 20-F for the
fiscal year ended December 31, 2018. The Partnership expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Partnership’s expectations with respect
thereto or any change in events, conditions or circumstances on
which any such statement is based.
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