GasLog has cut a deal to refinance the supposedly troublesome bond that saw it exit public markets.
The Greek LNG carrier owner said on Tuesday that it had come to an agreement in which the Carlyle Group and EIG buy $325m of bonds in a private placement. The 7.75% bonds are due in 2029.
The proceeds from the sale will be used to refinance its 8.875% senior bonds when they come due in March 2022.
According to regulatory filings made before GasLog went private in June, it had $315m outstanding on that debt.
In February, the Peter Livanos-backed company announced BlackRock’s Global Energy & Power Infrastructure team would buy the 45% of common shares not owned by either Livanos' Blenheim Holdings or an affiliate of the Onassis Foundation for $5.80 each, taking the company off the New York Stock Exchange.
Then, sources told TradeWinds the $315m in debt plus limited upside from vessels trading in the spot market and high costs were the impetus for the move.
In the run-up to the deal, GasLog refinanced $1.1bn in bank debt, pushing those maturities back to 2024, while turning its attention to the 2022-due senior bonds.
Last autumn, chief financial officer Achilleas Tasioulas said on an earnings call that the refinancing efforts paved the way to focus on the bonds.
"We have cleared the way with all the actions that we have taken," he said. "So we have options available. We are exploring them. And we believe that we will be able to do the refinancing well ahead of its time."
The Carlyle Group made its investment with funds from its Infrastructure Credit Fund, while EIG tapped its Global Project Fund V and accounts in its direct lending platform.