GasLog Ltd. Announces Agreement to Purchase Three LNG Carriers from BG Group

  GasLog Ltd. Announces Agreement to Purchase Three LNG Carriers from BG Group

Business Wire

MONACO -- January 15, 2014

GasLog Ltd. (“GasLog”) (NYSE:GLOG) today announced an agreement with Methane
Services Ltd. (“MSL”), an affiliate of BG Group, to purchase three LNG
carriers from MSL’s fleet and to charter those ships back to MSL for six-year
initial terms. MSL also will have options to extend the term of the time
charters for two of the ships for a period of either three or five years at
its election. The ships to be acquired will be nominated by MSL from an agreed
group of six sister ships built in 2006 and 2007. GasLog supervised the
construction of all six ships and has provided technical management for the
ships since delivery. The aggregate cost to GasLog for the ships is expected
to be approximately $468 million.

Each LNG carrier to be acquired is modern, steam powered and has a capacity of
145,000 cubic meters. The Company estimates that upon their acquisition, these
ships will represent approximately $426.3 million of incremental contracted
revenue over their initial charter terms and add over $50.0 million per annum
to GasLog’s EBITDA^1.

Paul Wogan, CEO of GasLog, commented that “we are very pleased that we will be
able to add these LNG carriers to our fleet as it again demonstrates our
ability to be a consolidator in this industry. We know these ships well,
having supervised their construction and technically operated them since their
delivery from Samsung Heavy Industries. We expect the transaction to be
accretive to our earnings and support increased dividend capacity. This
transaction also further strengthens our long-standing relationship with BG

The closing of the transaction is subject to the satisfaction of certain
conditions, including the completion of definitive documentation and necessary
financing. GasLog expects the transaction to close in the first or second
quarter of 2014.

In connection with the transaction, GasLog has obtained commitments from
Citibank, N.A. London Branch for a $325.5 million credit facility and a bridge
loan facility. Although GasLog has obtained the bridge loan facility to
maximize transactional certainty, it may pursue one or more alternative
capital-raising transactions to fund a portion of the vessel purchase price,
in which case it would not expect to borrow under the bridge loan facility.

Poten Capital Services (UK) advised GasLog on this transaction.

In a separate press release, GasLog announced that it expects to
confidentially submit to the United States Securities and Exchange Commission
a draft registration statement for an initial public offering of units in a
master limited partnership to be formed to own certain of GasLog’s ships with
multi-year charters.

About GasLog Ltd.

GasLog is an international owner, operator and manager of LNG carriers.
Following the acquisition of the MSL ships, GasLog’s fleet will include 18
wholly-owned LNG carriers, including eleven ships in operation and seven LNG
carriers on order. In addition, GasLog currently has 12 LNG carriers,
including the six ships subject to the agreement with MSL, operating under its
technical management for third parties. GasLog’s principal executive offices
are located at Gildo Pastor Center, 7 Rue du Gabian, MC 98000, Monaco.
GasLog’s website is

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. The reader is cautioned not
to rely on these forward-looking statements. All statements, other than
statements of historical facts, that address activities, events or
developments that the Company expects, projects, believes or anticipates will
or may occur in the future, including, without limitation, future operating or
financial results and future revenues and expenses, future, pending or recent
acquisitions, general market conditions and shipping industry trends, the
financial condition and liquidity of the Company, cash available for dividends
payments, future capital expenditures and dry-docking costs and new build
vessels and expected delivery dates, are forward-looking statements. These
statements are based on current expectations of future events. If underlying
assumptions prove inaccurate or unknown risks or uncertainties materialize,
actual results could vary materially from our expectations and projections.
Risks and uncertainties include, but are not limited to, general LNG and LNG
shipping market conditions and trends, including charter rates, ship values,
factors affecting supply and demand and opportunities for the profitable
operations of LNG carriers; our continued ability to enter into multi-year
time charters with our customers; our contracted charter revenue; our
customers’ performance of their obligations under our time charters and other
contracts; the effect of the worldwide economic slowdown; future operating or
financial results and future revenue and expenses; our future financial
condition and liquidity; our ability to obtain financing to fund capital
expenditures, acquisitions and other corporate activities, and funding by
banks of their financial commitments; future, pending or recent acquisitions
of ships or other assets, business strategy, areas of possible expansion and
expected capital spending or operating expenses; our ability to complete the
formation of a proposed master limited partnership; our ability to enter into
shipbuilding contracts for newbuilding ships and our expectations about the
availability of existing LNG carriers to purchase, as well as our ability to
consummate any such acquisitions; our expectations about the time that it may
take to construct and deliver newbuilding ships and the useful lives of our
ships; number of off-hire days, drydocking requirements and insurance costs;
our anticipated general and administrative expenses; fluctuations in
currencies and interest rates; our ability to maintain long-term relationships
with major energy companies; expiration dates and extensions of charters; our
ability to maximize the use of our ships, including the re-employment or
disposal of ships no longer under multi-year charter commitments;
environmental and regulatory conditions, including changes in laws and
regulations or actions taken by regulatory authorities; risks inherent in ship
operation, including the discharge of pollutants; availability of skilled
labor, ship crews and management; potential disruption of shipping routes due
to accidents, political events, piracy or acts by terrorists; and potential
liability from future litigation. A further list and description of these
risks, uncertainties and other factors can be found in our Annual Report filed
March 28, 2013. Copies of the Annual Report, as well as subsequent filings,
are available online at or on request from us. We do not undertake
to update any forward-looking statements as a result of new information or
future events or developments.


Non-GAAP Financial Measures:

EBITDA represents earnings before interest income and expense, taxes,
depreciation and amortization. EBITDA, which is a non-GAAP financial measure,
is used as a supplemental financial measure by management and external users
of financial statements, such as investors, to assess our financial and
operating performance. We believe that this non-GAAP financial measure assists
our management and investors by increasing the comparability of our
performance from period to period. We believe that including EBITDA assists
our management and investors in (i) understanding and analyzing the results of
our operating and business performance, (ii) selecting between investing in us
and other investment alternatives and (iii) monitoring our ongoing financial
and operational strength in assessing whether to continue to hold our common

EBITDA has limitations as an analytical tool and should not be considered as
an alternative to, or as a substitute for, profit, profit from operations,
earnings per share or any other measure of financial performance presented in
accordance with IFRS. This non-GAAP financial measure excludes some, but not
all, items that affect profit, and this measure may vary among companies. This
non-GAAP financial measure may not be comparable to similarly titled measures
of other companies in the shipping or other industries.

Estimated EBITDA for the three LNG carriers being purchased by GasLog for the
first twelve months of operation is based on the following assumptions:

• Closing of the acquisition in the first or second quarter of 2014 and timely
receipt of charter hire specified in the charter contracts;

• Utilization of 363 days per year and no drydocking;

• Vessel operating and supervision costs and charter commissions per current
internal estimates; and

• General and administrative expenses per current internal estimates.

GasLog considers the above assumptions to be reasonable as of the date of this
release, but if these assumptions prove to be incorrect, actual EBITDA for the
vessels could differ materially from the Company’s estimates.

^1 EBITDA, which represents earnings before interest income and expense,
taxes, depreciation and amortization, is a non-GAAP financial measure. Please
refer to Exhibit I for guidance on the underlying assumptions used to derive


GasLog Ltd.
Paul Wogan (CEO)
Phone: +377 9797 5120
Simon Crowe (CFO)
Phone: +377 9797 5115
Jamie Buckland (Investor Relations)
Phone: +377 9797 5117
Solebury Communications, NYC
Ray Posadas
Phone: +1 203 428 3231
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