Acquisition of Golar Freeze
(Thomson Reuters ONE) -
Golar LNG Partners LP (NASDAQ: GMLP) ("the Partnership") announced today that it
has entered into an agreement to acquire the companies that own the floating
storage and regasification unit ("FSRU") Golar Freeze from Golar LNG Limited
("Golar LNG") for a purchase price of $330 million. The transaction is expected
to close before the end of October 2011.
The acquisition will be financed by the assumption of approximately $108 million
of senior bank debt and with vendor financing provided by Golar LNG in the form
of a loan in the amount of approximately $222 million.
The Golar Freeze is operating under a 10 year long-term contract with Dubai
Supply Authority ("DUSUP") with a remaining firm contract period of
approximately 8.6 years. DUSUP has the right to extend the charter term for up
to an additional five years.
The senior bank debt that will be assumed has two tranches, the first of which
matures in June 2015. The interest payable on the senior bank debt has been
swapped to a fixed rate giving an all-in cost of approximately 4.0%. The vendor
financing has a term of three years and a fixed interest rate of 6.75%. It is
expected that the vendor financing will be refinanced prior to its maturity with
third party debt and/or in connection with the acquisition of potential further
assets from Golar LNG in the future.
During the firm contract period the Golar Freeze is expected to contribute
approximately $46 million in additional annual revenues. Under the current
financing structure and during the firm contract period the vessel is also
expected to contribute approximately $39 million in Adjusted EBITDA ((1)) and
approximately $8 million in Distributable Cash Flow ((2)).
The Board of Directors of the Partnership ("the Board") and the Conflicts
Committee of the Board ("the "Conflicts Committee") have approved the purchase
price and vendor financing. The Conflicts Committee retained a financial,
advisor DnB Nor Markets, to assist with its evaluation of the transaction.
The Partnership's management has recommended that, upon completion of the
transaction the Board consider a proposed increase in the annualized
distribution rate of approximately 11.7% to $1.72 per common unit from the
current annualized distribution rate of $1.54 per common unit.
This concludes the Partnership's first acquisition which is the first step in
the Partnership's growth strategy. The Board is excited about the improved
fundamental outlook for the LNG industry and the Partnership's future growth
prospects. The transaction is accretive to unit holders in terms of enterprise
value to EBITDA, earnings per share as well as in terms of Distributable Cash
Flow.
(1) Adjusted EBITDA is a non-GAAP financial measure. The Partnership defines
Adjusted EBITDA as earnings before interest, other financial items, including
non-cash income or loss related to derivative instruments, taxes, non-
controlling interest and depreciation and amortization and is used as a
supplemental financial measure by management and external users of financial
statements, such as investors, to assess the Partnership's financial and
operating performance. Adjusted EBITDA assists the Partnership's management and
investors by increasing the comparability of the Partnership's performance from
period to period and against the performance of other companies in the industry
that provide adjusted EBITDA information. This increased comparability is
achieved by excluding the potentially disparate effects between periods or
companies of interest, other financial items, taxes, depreciation and
amortization, which items are affected by various and possibly changing
financing methods, capital structure and historical cost basis and which items
may significantly affect net income between periods. The Partnership believes
that including adjusted EBITDA as a financial and operating measure benefits
investors in (a) selecting between investing in the Partnership's and other
investment alternatives and (b) monitoring the Partnership's ongoing financial
and operational strength in assessing whether to continue to hold common
units.
Adjusted EBITDA should not be considered an alternative to net income, operating
income, cash flow from operating activities or any other measure of financial
performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes
some, but not all, items that affect net income, and these measures may vary
among other companies.
(2) Distributable Cash Flow represents net income adjusted for depreciation
and amortization, unrealized gains and losses from derivatives, unrealised
foreign exchange gains and losses, other non-cash items and maintenance and
replacement capital expenditures. Maintenance and replacement capital
expenditures, including expenditure on drydocking, represent capital
expenditures required to maintain over the long-term the operating capacity of
or the revenue generated by the Partnership's capital assets. Distributable cash
flow is a quantitative standard used by investors in publicly-trade partnerships
to assist in evaluating a partnerships ability to make quarterly cash
distributions. Distributable cash flow is a non-GAAP financial measure and
should not be considered as an alternative to net income or any other indicator
of the Partnership's performance calculated in accordance with GAAP.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future
events and the Partnership's operations, performance and financial condition.
Forward-looking statements include, without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and may contain the words "believe", "anticipate", "expect",
"estimate", "project", "will be", "will continue", "will likely result", "plan",
"intend" or words or phrases of similar meanings. These statements involve known
and unknown risks and are based upon a number of assumptions and estimates that
are inherently subject to significant uncertainties and contingencies, many of
which are beyond the Partnership's control. Actual results may differ materially
from those expressed or implied by such forward-looking statements. Important
factors that could cause actual results to differ materially include, but are
not limited to:
· statements regarding the annual revenues, adjusted EBITDA and
distributable cash flow that may be generated by the Golar Freeze;
· statements about FSRU and LNG market trends, including charter rates,
factors affecting supply and demand, and opportunities for the profitable
operations of FSRUs and LNG carriers;
· statements about the Partnership's and Golar LNG's ability to retrofit
vessels as FSRUs and the timing of the delivery and acceptance of any such
retrofitted vessels;
· the Partnership's anticipated growth strategies;
· the effect of the worldwide economic slowdown;
· turmoil in the global financial markets;
· fluctuations in currencies and interest rates;
· general market conditions, including fluctuations in charter hire
rates and vessel values;
· changes in the Partnership's operating expenses, including drydocking
and insurance costs and bunker prices;
· forecasts of the Partnership's ability to make cash distributions on
the units and the amount of any borrowings that may be necessary to make such
distributions;
· the Partnership's future revenues, expenses, financial condition and
results of operations;
· the repayment of debt and settling of interest rate swaps;
· the Partnership's ability to make additional borrowings and to access
debt and equity markets;
· planned capital expenditures and availability of capital resources to
fund capital expenditures;
· the Partnership's ability to purchase vessels from Golar LNG in the
future;
· the Partnership's continued ability to enter into long-term time
charters, including charters for floating storage and regasification projects;
· the Partnership's ability to compete successfully for future
chartering and newbuilding opportunities;
· charter termination dates and extensions of charters;
· estimated future maintenance and replacement capital expenditures;
· the Partnership's business strategy and other plans and objectives for
future operations; and
· other factors listed from time to time in the reports and other
documents the Partnership files with the United States Securities and Exchange
Commission, including its Registration Statement on Form F-1 (File No.
333-173160) and Form 6-K for the period ended June 30, 2011.
New factors emerge from time to time, and it is not possible for the Partnership
to predict all of these factors. Further, the Partnership cannot assess the
impact of each such factor on its business or the extent to which any factor, or
combination of factors, may cause actual results to be materially different from
those contained in any forward-looking statement. The Partnership does not
intend to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with respect thereto or any change in events, conditions or
circumstances on which any such statement is based.
Hamilton, Bermuda
October 6 2011
Investor relations enquiries:
Golar Management Limited - + 44 207 063 7900
Brian Tienzo
Graham Robjohns
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Golar LNG Partners L.P. via Thomson Reuters ONE
[HUG#1552753]
Datum: 06.10.2011 - 14:55 Uhr
Sprache: Deutsch
News-ID 73509
Anzahl Zeichen: 11562
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 291 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Acquisition of Golar Freeze"
steht unter der journalistisch-redaktionellen Verantwortung von
Golar LNG Partners L.P. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
