George Procopiou-led Dynagas LNG Partners has secured a syndicated loan of $675m from a group of international banks. The credit facility will be secured by mortgages on the partnership’s entire fleet of six LNG carriers.
The loan, together with extra cash, will be utilised to repay the all partnership’s existing debt of $720m in total.
The new credit facility is repayable over five years in 20 consecutive quarterly payments based on a 14-year amortisation profile.
Dynagas LNG Partners expects to complete the financing before end of September.
“We are pleased to enter into this transformative re-financing. The credit facility provides the partnership with reduced cost of debt relative to the existing one and a simplified debt structure with a clear and viable path towards deleveraging through a significant increase in debt amortization,” said Tony Lauritzen, CEO of Dynagas LNG Partners.
The partnership has in place long-term charter contracts with international energy companies, generating cash flows that will be channeled towards the amortization requirements of the credit facility, building equity value over time. As a result of this global refinancing and broader strategic realignment, the partnership is better positioned for future growth initiatives as global LNG markets continue their robust development,” Lauritzen added.