October 12, 2011
HAMILTON, BERMUDA–(Marketwire – Oct. 12, 2011) – Teekay LNG Partners L.P. (NYSE:TGP) – Highlights
Five of the eight LNG carriers to be acquired are currently operating under long-term, fixed-rate time-charter contracts, with an average remaining firm contract period duration of approximately 17 years, plus extension options. The other three vessels are currently operating under short-term, fixed-rate time-charters; however, one of these charters includes an extension option which, if exercised, would increase the number of acquired vessels on long-term, fixed-rate charters to six. Based on the acquired vessels’ current employment, the acquisition is expected to be accretive to Teekay LNG’s distributable cash flow (1) per unit.
- Teekay LNG Partners and Marubeni Corporation joint venture agrees to acquire ownership of eight LNG carriers from A.P. Moller-Maersk for an aggregate purchase price of approximately $1.402 billion.
- Transaction expected to be accretive to Teekay LNG’s distributable cash flow per unit.
- Financing for the transaction secured through new loan facilities and a portion of Teekay LNG Partners’ existing liquidity.
|LNG Carrier||Year Delivered||Ownership|
|8.||Maersk Ras Laffan||2004||26%|
- Distributable cash flow represents net income adjusted for depreciation and amortization expense, non-controlling interest, non-cash items, estimated maintenance capital expenditures, gains and losses on vessel sales, unrealized gains and losses from derivatives, non-cash income taxes and unrealized foreign exchange related items. Distributable cash flow is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Distributable cash flow is not defined by U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income or any other indicator of the Partnership’s performance required by GAAP.