Teekay LNG Partners secures new charters and $225m refinancing

Teekay LNG Partners secures new charters and $225m refinancing

Teekay LNG Partners has announced new fixed-rate charters for two of its part-owned LNG carriers as well as a $225m refinancing.

The new charters, a 12-month charter on the Arwa Spirit and an eight-month charter on the Methane Spirit, will commence upon completion and in direct continuation of their existing contracts in May and July 2020 respectively. The vessels are part of the fleet of Malt LNG, which is 52% owned by Teekay and 48% owned by Japan’s Marubeni.

Additionally, Teekay LNG has refinanced its existing $225m unsecured revolving credit facility, which was scheduled to mature in November 2020. The new two-year facility is for the same amount and pricing is consistent with the previous facility of LIBOR + 140 bps.

Mark Kremin, president and CEO of Teekay Gas Group, commented: “As we are an integral part of the world’s LNG supply chain, all of our vessels have continued to operate as expected under their existing fixed-rate contracts and I am pleased to report that, with these two new fixed-rate contracts, our LNG fleet is now 98 percent fixed though 2020 and 94 percent fixed for 2021.

“We are also grateful for the continued strong support we receive from our bank group, as represented by the refinancing and closing of our $225 million unsecured revolving credit facility with 13 major international banks, which provides the Partnership with a strong consolidated liquidity position of approximately $400 million and increased financial flexibility with which to add value to our long-term unitholders.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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