Peter Livanos’ GasLog is dropping down another of its LNG carriers in a $214m deal.
The 174,000-cbm GasLog Glasgow (built 2016) is now the property of affiliate GasLog Partners, the companies announced jointly Friday morning.
“We continue to execute on our strategy of dropping vessels into GasLog Partners in order to recycle capital back to GasLog to fund our capital programme," GasLog chief executive Paul Wogan said in a statement.
"Since the inception of the partnership in 2014 — when we had a dropdown pipeline of 12 vessels with multi-year charters — we have sold 12 vessels to the partnership. Today, our pipeline of future growth opportunities for GasLog Partners is 11 vessels."
The GasLog Glasgow is on charter to a Shell subsidiary until June 2026, with the option to extend the charter another five years.
The deal is expected to net GasLog Partners $23.5m in Ebidta over the next year.
The company is financing the deal through with available liquidity, including funds from 8.5% bonds issued in November and the assumption of the ship's $134m existing debt.
Deutsche Bank's Chris Snyder said in a note that the dropdown is a "positive development" for GasLog and GasLog Partners that reinforces the healthy relationship between the two. But, he wrote, the move was not a surprise.
"[I]t always positive to see companies execute on their strategy," he wrote. "We would expect a muted to slightly positive reaction for GLOP shares however the difficult tape today could weigh on trading."
The companies expect the deal to close in the early second quarter.
