Dynagas LNG Partners shares fell more than 18% after it disclosed details of a potential new financing deal this week, exacerbating losses incurred after a shareholder filed a lawsuit against the Tony Lauritzen-led company last month.
At market close on Thursday, the gas carrier owner's shares were trading at $1.61, down 18.27%, or $0.36.
The fall followed an announcement on Wednesday that the company may end distributions to common shareholders as part of a deal to refinance the $250m in 6.25% notes that come due in October.
Class action
That deal is said to be in "advanced stages" with a trio of banks leading the negotiations. Lauritzen has said as many as 10 banks could be involved when finalised.
Since 16 May, when shareholder Mario Epelbaum sued Dynagas LNG in federal court, the owners' shares have dropped more than 27% from $2.24.
The lawsuit, filed in Manhattan federal court, alleges that the company told investors they had the cash flow to maintain distributions and lied about two charters. The suit seeks class action status.
In its first quarter earnings, the company said the two ships, the 149,000-cbm Ob River (built 2007) and the 155,000-cbm Arctic Aurora (built 2013), were part of the cause of lower revenues.
A third ship, the 155,165-cbm Lena River (built 2013), had also been negatively impacting revenue, but will begin a charter with Yamal LNG on 1 July.
