Teekay LNG Partners L.P. (Teekay LNG or the Partnership) announced that it has secured new fixed-rate charters for two of its 52 percent-owned LNG carriers, a 12-month charter on the Arwa Spirit and an eight-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 $225 million unsecured revolving credit facility, which was scheduled to mature in November 2020, with a new two-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 percent fixed though 2020 and 94 percent fixed for 2021,” commented 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 percent increase in our cash distribution to an annualized amount of $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 $225 million unsecured revolving credit facility with 13 major international banks, which provides the Partnership with a strong consolidated liquidity position of approximately $400 million and increased financial flexibility with which to add value to our long-term unitholders.”