GasLog Partners priced its shares at $20.50 per share today, which will bring in some $76.8m to the master limited partnership.
Yesterday, the GasLog spinoff announced plans to sell 3.75 million units in a public offering. Underwriters have a 30-day option to buy another 562,500 units, which would bring in an additional $11.5m if exercised.
GasLog Partners says the new capital could be put toward future acquisitions from its parent.
The offering was priced below Monday's $22.05 per share closing price. The units fell about 7% in pre-market trading to $20.40.
Dropdown expected soon
Stifel analyst Ben Nolan says investors should "expect a vessel dropdown announcement relatively soon following the secondary closing." GasLog Partners took in the 155,000-cbm GasLog Seattle (built 2013) from its parent in an October transaction.
Nolan says GasLog Partners would likely acquire a 150,000-cbm vessel from its parent that is under five years old and has a long-term charter. Of 10 GasLog vessels chartered past 2020, only six of those are of "ideal size and age for the partnership with respect to vessel size and age".
GasLog Partners has three vessels rolling off charter throughout 2018, which add risk to the partnership's cash flow and distribution coverage, Nolan says.
"Management's attempt to diversify the contracted cash flow base should alleviate concerns regarding distribution stability," he said.
