GasLog Partners filed a prospectus to issue new preferred shares as the LNG carrier owner eyes more dropdowns from its parent.
The New York-listed master limited partnership, a spinoff of GasLog, said it plans to sell a new series of preferred units in an upcoming public offering.
The new preferred units, which will have a liquidation preference of $25 per share, will offer a fixed dividend through 2027 with a floating-rate dividend thereafter.
In addition to general corporate purposes, GasLog Partners said that the new capital raised could be put to "future acquisitions from GasLog."
Over the last six months,the Andrew Orekar-led company has acquired the 155,000-cbm GasLog Seattle (built 2013) and the 174,000-cbm GasLog Greece (built 2016) from its parent.
Evercore analyst Jonathan Chappell says 12 other ships in GasLog's fleet have the charter terms that meet criteria for dropping down to the partnership. As such, investors could "anticipate a third vessel dropdown by year end."
Morgan Stanley, UBS and Citigroup are acting as joint book-runners for the offering, Stifel is acting as lead manager for the offering, and ABN AMRO and BNP PARIBAS are acting as co-managers for the offering. The underwriters will have a 30-day option to purchase additional preferred units from the partnership.
