GasLog Partners has brought a new major stakeholder to the table with an eye on future dropdowns from GasLog.
The US-listed LNG carrier player today announced an agreement to sell 2.25 million common units to funds managed by US-based Tortoise Capital Advisors for $53.1m.
GasLog Partners plans to use the money for general partnership purposes, including future acquisitions, debt repayment, capital expenditures and more working capital.
"We currently expect that this will include future acquisitions from GasLog," the company said.
The shares are being sold at $23.60 each through the partnership’s at-the-market common equity offering programme.
“I am very pleased to welcome Tortoise, a leading energy infrastructure investor, as a significant unitholder in the partnership," chief executive Orekar said.
"This equity issuance and execution format demonstrates our access to diverse and competitive capital sources, and fulfills our expected equity requirements for growth in 2018.”
GasLog Partners last expanded its fleet to 13 vessels in March with the $207m purchase of174,000-cbm GasLog Gibraltar (built 2016) from Greece's GasLog.
"We expect GasLog Partners to complete its next vessel acquisition in early 4Q18 which would be the company's second vessel acquisition of the year and more importantly should pave the way for a 4Q18 distribution increase," BTIG analyst Gregory Lewis wrote in a note to clients.
Welcome aboard
The share transaction announced today will place Tortoise among GasLog Partners' major stakeholders.
GasLog is the top shareholder with 11.8 million shares representing a 27.6% stake, followed by Fidelity Management with an interest of 3.6 million shares, or 8.3%.
Oppenheimer Funds owns 2.5 million shares, or 5.7%, while Kayne Anderson Capital Advisors has 1.85 million units for a 4.3% stake.
"The shares were placed with an established MLP investment fund that will now be the third largest institutional holder of GLOP stock," Lewis said.
He gives a buy rating to GLOP shares, which slid 0.6% to $24.85 about 15 minutes after Wall Street's opening bell.
