GasLog is removing some costly hybrid securities from its balance sheet after its recent huge refinancing.
The Peter Livanos LNG carrier owner said it will buy back 4.34m redeemable perpetual preference shares carrying a coupon of 8.75%.
The shipowner is paying $25 per share plus accrued and unpaid dividends. The stock alone will set it back $108.5m.
GasLog sold 4.6m of the shares in 2015.
Redeemable shares grant the issuer the right to buy back the stock on a specified date or at any point afterwards.
The issue is listed in New York.
The selling price was also $25, giving GasLog net proceeds of $111.3m in 2015.
They are considered hybrid securities as they have characteristics of both debt and equity.
Cash is available after GasLog clinched what is claimed to be shipping’s biggest-ever commercial debt financing deal earlier in November.
The Greek owner of 23 LNG carriers and a floating storage and regasification unit secured a $2.8bn loan package from 14 international banks that is linked to sustainability and gender diversity.
Five-year deal
The revolving credit facility has a tenor of five years, including two one-year extension options.
Banking sources told TradeWinds that it is priced about two percentage points above the secured overnight financing rate.
The biggest part of the loan, $2.1bn, refinances loans secured by GasLog’s LNG fleet following the absorption earlier this year of GasLog Partners, a previously stand-alone, publicly held sister entity.
