Dynagas LNG enters $675 million term loan at Libor plus 300 bps

By Wendy Van Sickle

Columbus, Ohio, Sept. 19 – Dynagas LNG Partners entered into an agreement for a $675 million senior secured term loan, according to a Thursday news release.

The loan bears interest at Libor plus 300 basis points.

The credit facility is repayable over five years in 20 consecutive quarterly payments with a balloon payment due at the end.

Borrowings will be used with cash on hand to fully repay the partnership's existing debt, including its $470 million senior secured term loan B and its $250 million of 6.25% senior notes at maturity on Oct. 30.

The credit facility will be secured by, among other things, first priority mortgages on the six LNG carriers in the partnership's fleet.

Financial covenants require the maintenance of maximum leverage ratios and minimum liquidity covenants, including the requirement for the partnership to maintain a minimum cash balance of $50 million throughout the life of the credit facility in a restricted collateral account.

Dynagas is a Monaco-based master limited partnership formed by Dynagas Holding Ltd. that owns six liquefied natural gas carriers employed on multi-year charters.

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