Dynagas LNG Partners LP, an international owner and operator of liquefied natural gas (LNG) carriers, announced it has secured a $675 million syndicated loan from leading international banks.
The credit facility will be secured by mortgages on the partnership’s entire fleet of six LNG carriers, the Monaco-headquartered company said.
This move is expected to help the company eliminate its existing dept of totaling $720 million.
Tony Lauritzen, Chief Executive Officer, Dynagas LNG Partners said: "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."
"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," he added.
The loan is repayable over five years in 20 consecutive quarterly payments, based on a 14 year amortization profile and has a margin of LIBOR plus 300 basis points.