GasLog Partners LP entered into an agreement to purchase from GasLog Ltd. 100% of the shares in the entities that own and charter the Methane Jane Elizabeth and Methane Rita Andrea, modern LNG carriers with a capacity of 145,000 cubic meters each, for an aggregate purchase price of $328 million. The vessels are currently operating under long-term time charters with BG Group with initial terms through October 2019 and April 2020, respectively. BG has the option to extend either or both of the charters for an additional period of either three or five years following the initial charter period.

GasLog Partners believes the acquisition is immediately accretive and expects the vessels will annually generate $47.7 million of incremental contracted revenue over their initial charter terms, assuming full utilization, and $34.5 million of EBITDA. After the acquisition, GasLog Partners’ management plans to recommend to the board an increase in its quarterly cash distribution per unit of between 5.625 cents and 6.25 cents, an increase of about 15% above the existing minimum quarterly distribution and an annualized increase of between 22.5 cents and 25 cents per unit. When combined with the existing minimum quarterly cash distribution of 37.5 cents, this proposed increase results in a cash distribution of between 43.125 cents to 43.75 cents per quarter.

The acquisition is subject to GasLog Partners obtaining necessary funds to pay the purchase price and the satisfaction of certain other closing conditions. The company plans to finance the acquisition with a combination of equity and the assumption of the vessels’ existing credit facilities. In addition, GasLog Partners entered into a commitment letter with Citibank for a new $450 million credit facility to refinance the current credit facilities of the vessels the company currently owns as well as the facilities for the two LNG carriers being acquired.