Teekay LNG Nets USD 327 Mn of Financing

Nov 10, 2017

Teekay LNG Partners has secured a USD 327 million long-term debt facility to finance a Floating Storage Unit (FSU), the company said.

The FSU in question is intended to be chartered on a 20-year charter contract to the Bahrain regasification project commencing in the third quarter of 2018.

In addition, the financing will be used to fun a MEGI LNG carrier newbuilding to be chartered on a 13-year charter contract with BP starting in early-2019.

“On the financing side, we continue to execute on financing our newbuilding projects and have recently completed USD 327 million in new debt financings relating to a floating storage unit for the Bahrain regasification project and one MEGI LNG carrier newbuilding. In addition, we have once again demonstrated access to capital markets and further strengthened our balance sheet through our recent USD 70 million preferred equity offering completed in October 2017,” Mark Kremin, President and Chief Executive Officer of Teekay Gas Group said.

As at September 30, 2017, the partnership had total liquidity of approximately USD 415 million after giving pro forma effect to the USD 170 million preferred equity issuance completed in October 2017.

The company reported GAAP net loss of USD 18.9 million in the third quarter of 2017, against USD 50 million worth income reported last year amid lower revenues from six liquefied petroleum gas carriers chartered to I.M. Skaugen SE (Skaugen) from uncollected hire. The sale of the Asian Spirit conventional tanker in the first quarter of 2017; and lower spot rates earned for certain of the vessels pushed the earnings down.

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