GasLog Partners has cut a deal to refinance a third of its ships at the same time as ringing up a first quarter profit.
The New York-traded company has entered into a $450m credit agreement with Credit Suisse, Nordea Bank, filial i Norge and the Singaporean branch of Iyo Bank to refinance five of its ships.
The deal saw the 155,000-cbm GasLog Shanghai, GasLog Santiago and GasLog Sydney (all built 2013) refinanced, along with the 145,000-cbm Methane Rita Andrea and Methane Jane Elizabeth (both built 2006).
The existing debt on the ships was due to mature in November. GasLog Partners drew $360m from the agreement, of which $354.4m was used to refinance.
The facility comes with an interest rate of Libor plus 2% to 2.2%, a reduced rate from the previous agreement.
The update came as the Andy Orekar-led MLP reported an adjusted profit of $27m for the first quarter, down from $31.8m a year ago.
"Despite seasonal weakness in spot LNG shipping markets due to warmer than normal winter temperatures combined with high inventory levels, we expect the spot market to strengthen as we move through 2019, supported by the expected increase in new LNG supply over the balance of the year, especially from U.S. projects," Orekar said.
"Our guidance reflects the positive outlook for the LNG shipping market and our recently completed accretive acquisitions, while also considering our two scheduled dry-dockings and one vessel coming off charter in late 2019."
