Dynagas LNG Partners, a US-listed owner of six LNG carriers, has filed papers preparing for the possible sale of shares or other securities in the company worth more than $400m.
That includes the entire 42.4% stake held in the firm by Procopiou family-controlled Dynagas Holding, which has a current market value of close to $60m.
According to the shelf registration submitted to the US Securities and Exchange Commission on Thursday, Dynagas LNG Partners said it “may from time to time, in one or more offerings” sell securities worth up to $350m.
The potential offer could include common units, as well as debt securities, warrants, rights and purchase contracts.
On top of that, the company said Dynagas Holding also might sell up to 15.95m of its common shares.
According to the accompanying documentation, this is equivalent to the entire stake that Dynagas Holding has in Dynagas LNG Partners.
The common units of Dynagas LNG Partners closed trading at $3.83 on Thursday, giving the participation of Dynagas Holding in the company a total market value of $59.7m.
Shelf registrations filed with the SEC are documents that pave the way for future sales of shares or debt securities.
The sale lined up in the document is not binding.
The move comes one month after the company said it was “equipped to explore new opportunities” after paying off $675m worth of debt through a sale-and-leaseback deal with China Development Bank Financial Leasing Co on four of its six ships.
This reduced its total outstanding debt to $345m from $675m in September 2019.
Dynagas LNG Partners is led by chief executive Tony Lauritzen.
