By James McCandless
San Antonio, Oct. 16 – Dynagas LNG Partners LP priced a $55 million offering of $25-par series B fixed-to-floating rate cumulative redeemable perpetual preferred units with an initial dividend of 8.75%, according to an FWP filing with the Securities and Exchange Commission.
There is a $8.25 million greenshoe.
Morgan Stanley & Co. LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc. are the joint bookrunners.
The preferreds are redeemable on or after Nov. 22, 2023 at par plus accrued dividends.
If the preferreds are not redeemed by Nov. 22, 2023, the dividend will convert to Libor plus 559.3 basis points.
Dynagas plans to use the proceeds for general partnership purposes, which may include, among other things, the repayment of debt, including the partnership’s outstanding 6.25% senior notes due Oct. 30, 2019, or the funding of acquisitions or other capital expenditures.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “DLNGPrB.”
Dynagas is a Monaco-based natural gas shipping company.
| Issuer: | Dynagas LNG Partners LP
|
| Description: | Series B fixed-to-floating rate cumulative redeemable perpetual preferred units
|
| Amount: | $55 million, or 2.2 million units
|
| Greenshoe: | $8.25 million, or 330,000 units
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC and Stifel, Nicolaus & Co., Inc.
|
| Co-manager: | B. Riley FBR, Inc.
|
| Dividend: | 8.75% until Nov. 22, 2023, then converts to floating rate of Libor plus 559.3 bps
|
| Price: | Par of $25.00
|
| Call: | On or after Nov. 22, 2023 at par plus accrued dividends
|
| Pricing date: | Oct. 16
|
| Settlement date: | Oct. 23
|
| Distribution: | SEC registered
|
| Listing: | NYSE: DLNGPrB
|
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