GasLog Partners announces an agreement with GasLog to acquire 100% of the shares in the entity that owns and charters the Methane Becki Anne to Shell.

The Methane Becki Anne is a 170,000 cubic meter ("cbm") tri-fuel diesel electric ("TFDE") LNG carrier built in 2010 and technically managed by GasLog since delivery. The vessel is currently on a multi-year time charter with a subsidiary of Shell through March 2024 and Shell has a unilateral option to extend the term of the time charter for a period of either three or five years.

GasLog Partners LP announces Acquisition of the Methane Becki Anne
Caption: LNG carrier Methane Becki Anne - Image courtesy of Michel Morin

The aggregate purchase price for the acquisition will be $207.4 million, which includes $1.0 million for positive net working capital balances to be transferred with the vessel and is approximately equal to the vessel's net book value.

GasLog Partners expects to finance the acquisition with cash on hand, plus the assumption of the Methane Becki Anne's outstanding indebtedness of $93.9 million.

“The Partnership believes that the Methane Becki Anne acquisition will be immediately accretive to Distributable cash flow per unit and is consistent with its strategy to grow cash distributions through drop-down and third-party acquisitions. GasLog Partners estimates that the Methane Becki Anne will add approximately $22.0 million to EBITDA in the first 12 months after closing. Accordingly, the purchase price represents an acquisition multiple of approximately 9.4x estimated EBITDA. The acquisition is expected to close in the fourth quarter of 2018.”

Source: GasLog Partners