New LNG charters and refinancing for Teekay LNG Partners

Source: press release, 3 April 2020

LNG carrier ‘Methane Spirit’ (photo: Teekay Corporation)
LNG carrier ‘Methane Spirit’ (photo: Teekay Corporation)

Teekay LNG Partners L.P. has announced that it has secured new fixed-rate charters for two of its 52%-owned LNG carriers, a 12-month charter on the Arwa Spirit and an 8-month charter on the Methane Spirit, both of which are expected to commence upon completion and in direct continuation of their existing contracts in May and July 2020, respectively.

In addition, Teekay LNG has successfully refinanced its existing USD 225 million unsecured revolving credit facility, which was scheduled to mature in November 2020, with a new 2-year facility of the same amount and pricing consistent with the previous facility of LIBOR + 140 bps.

“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% fixed though 2020 and 94% fixed for 2021,” comments Mark Kremin, President and CEO of Teekay Gas Group Ltd. “The Partnership expects to continue to benefit from its long-term contracted cash flow, and continue allocating capital in a manner that focuses on delevering and strengthening its balance sheet, while also returning capital to unitholders, including a 32% increase in our cash distribution to an annualised amount of USD 1.00 per common unit effective for the first quarter of 2020.”

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