Teekay LNG Partners confirmed last week that together with partner Marubeni, it is to acquire ownership interests in eight LNGCs from AP Moller-Maersk, for a total purchase price of about $1.402 bill, Tankeroperator reports.
The transaction includes the purchase 100% wnership interests in six LNGCs and 26% ownership interests in two additional LNGCs.
Five of the eight LNGCs are currently operating under long-term, fixed-rate timecharter contracts, with an average remaining firm contract period duration of about 17 years, plus extension options.
The other three vessels are currently operating under short-term, fixed-rate timecharters. However, one of these charters includes an extension option which, if exercised, would increase the number of acquired vessels on long-term, fixed-rate charters to six.
To finance this transaction, the joint venture has secured loan facilities, which on a combined basis total around $1.12 bill. The remaining $280 mill of the purchase price is expected to be financed with equity contributions from Teekay LNG and Marubeni, commensurate with the respective joint venture ownership interests of 52% and 48% respectively.
As a result, Teekay LNG’s pro rata portion of the equity contribution is expected to be approximately $146 mill, which will be funded from Teekay LNG’s existing liquidity which totalled around $480 mill as at 30th September, 2011.
In addition, the owners of the remaining interests in the two LNG carriers in which the joint venture is acquiring 26% interests will have the right to demand that it acquire up to all of any remaining interests.
“Working with our joint venture partner Marubeni, we are pleased to announce Teekay LNG’s largest acquisition of on-the-water vessels to date,” said Peter Evensen, Teekay GP CEO, the partnership’s general partner.
“The eight acquired vessel interests will increase the total number of vessels in which we have ownership interests, including committed newbuildings, to 45 vessels, and the timecharter contracts acquired with these vessels will broaden our customer base and add further stable cash flows to our existing large portfolio of long-term fixed-rate contracts.
"With three of the vessels currently employed on short-term time-charters, the partnership should benefit from the strong near-term demand for LNGCs. With an average age of only four years, we are acquiring a modern, well-maintained fleet that has been operated by one of the leaders in global shipping,” he concluded.
The approved transaction is expected to close by early 2012, subject to customary closing conditions including consent from charterers and approval from relevant regulatory authorities. Teekay Corp will take over technical management of the vessels after a transition period.
The transaction includes the purchase 100% wnership interests in six LNGCs and 26% ownership interests in two additional LNGCs.
Five of the eight LNGCs are currently operating under long-term, fixed-rate timecharter contracts, with an average remaining firm contract period duration of about 17 years, plus extension options.
The other three vessels are currently operating under short-term, fixed-rate timecharters. However, one of these charters includes an extension option which, if exercised, would increase the number of acquired vessels on long-term, fixed-rate charters to six.
To finance this transaction, the joint venture has secured loan facilities, which on a combined basis total around $1.12 bill. The remaining $280 mill of the purchase price is expected to be financed with equity contributions from Teekay LNG and Marubeni, commensurate with the respective joint venture ownership interests of 52% and 48% respectively.
As a result, Teekay LNG’s pro rata portion of the equity contribution is expected to be approximately $146 mill, which will be funded from Teekay LNG’s existing liquidity which totalled around $480 mill as at 30th September, 2011.
In addition, the owners of the remaining interests in the two LNG carriers in which the joint venture is acquiring 26% interests will have the right to demand that it acquire up to all of any remaining interests.
“Working with our joint venture partner Marubeni, we are pleased to announce Teekay LNG’s largest acquisition of on-the-water vessels to date,” said Peter Evensen, Teekay GP CEO, the partnership’s general partner.
“The eight acquired vessel interests will increase the total number of vessels in which we have ownership interests, including committed newbuildings, to 45 vessels, and the timecharter contracts acquired with these vessels will broaden our customer base and add further stable cash flows to our existing large portfolio of long-term fixed-rate contracts.
"With three of the vessels currently employed on short-term time-charters, the partnership should benefit from the strong near-term demand for LNGCs. With an average age of only four years, we are acquiring a modern, well-maintained fleet that has been operated by one of the leaders in global shipping,” he concluded.
The approved transaction is expected to close by early 2012, subject to customary closing conditions including consent from charterers and approval from relevant regulatory authorities. Teekay Corp will take over technical management of the vessels after a transition period.