GasLog successful in capital markets, completes IPO during Q2, ends quarter with $1.7 billion debt

By Lisa Kerner

Charlotte, N.C., Aug. 20 – GasLog Ltd. chief financial officer Simon Crowe said he was “pleased” with the overall positive response the company received from the capital markets in the second quarter.

“Our second equity raise was done at a 4.6% discount to the previous night’s close, and the second NOK bond issue achieved a fixed-dollar coupon of 5.99%, which shows the growing strength of the GasLog credit,” said Crowe during GasLog’s second-quarter earnings call on Wednesday.

The follow-on equity offering raised about $110 million, and the Norwegian bond raising totaled about NOK 500 million, or $84 million, according to the earnings news release. Proceeds were used for new ship financings.

In May 2014, GasLog entered into a syndicate debt financing agreement with Citibank acting as security agent and trustee for $325.5 million with a two-year maturity. It was drawn in June for ship financing.

GasLog increased its on-the-water fleet to 15 with the addition of six new ships in the quarter at a cost of $936 million.

Also during the quarter ended June 30, GasLog completed the initial public offering of GasLog Partners LP, raising gross proceeds of about $203 million.

Proceeds from the IPO of $186 million were used to for debt prepayment and payment, as well as for general corporate purposes.

“The MLP gives us further access to the capital markets,” said Crowe.

Liquidity and financing

At quarter-end, GasLog had cash and cash equivalents of $241.6 million, of which $145.8 million was held in time deposits, and the balance in current accounts.

Total debt of about $1.7 billion is outstanding under 10 credit agreements, of which $110.3 million is repayable within one year.

GasLog had $163.1 million outstanding under the NOK bond agreement that is payable in June 2018.

The company ended the quarter with an undrawn amount of $7.8 million from the revolving facility of GAS-two Ltd. and $292 million of availability under a loan facility, the earnings release stated.

Financial highlights

GasLog ended the quarter with profit of $3.5 million, compared to $20.4 million for the prior-year period. The decrease was attributed to the increase in non-cash loss from swaps.

The company reported adjusted earnings per share of $0.13 for the quarter, compared to $0.11 for the quarter ended June 30, 2013.

Second-quarter adjusted EBITDA was $46.6 million, up from $20.4 million reported for the year-ago period.

Revenues at June 30 totaled $73.2 million, more than double the $32.9 million reported for the same quarter in 2013.

Financial costs were up year over year at $17.7 million, from $5.5 million, due in part to an increase of $8.5 million in interest expense.

GasLog is an owner, operator and manager of liquefied natural gas carriers based in Monaco.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.