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

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

Business Wire

MONACO -- April 10, 2014

Following the announcement today in a separate press release that GasLog Ltd.
(“GasLog”) (NYSE:GLOG) has successfully completed the acquisition of three
ships from Methane Services Ltd. (“MSL”), an affiliate of BG Group, GasLog is
pleased to announce that it has agreed to acquire an additional three LNG
carriers from MSL and to charter those ships back to MSL for six-year initial
terms on average. The time charters back to MSL for the vessels will be
staggered with terms of 5.5 years, 6 years and 6.5 years, similar to the
vessels acquired from MSL today, so that the vessels do not redeliver at the
same time. MSL will also 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

The vessels to be acquired from MSL are 2007 built sister ships of the three
vessels acquired today. GasLog supervised the construction of all six sister
ships and has provided technical management for the ships since delivery.

The aggregate cost to GasLog for the three ships party to the transaction
announced today 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 $425 million of incremental contracted
revenue over their initial charter terms and add over $50.0 million per annum
to GasLog’s EBITDA^1. For the year ended December 31, 2013, the Company had
consolidated revenues of $157.2 million and consolidated profit of $56.9

Paul Wogan, CEO of GasLog, commented, “We are very pleased to be doing a
second transaction with BG Group to acquire three more on-the-water vessels in
addition to the three vessel acquisition that we completed today. The
transaction supports our strategy of consolidating the LNG carrier market by
acquiring high quality assets. The ships will be chartered back to an
affiliate of BG Group, thus increasing our backlog of contracted revenue to
almost $3 billion. This strengthens our underlying business and provides a
very strong base from which to continue to expand our fleet in the future. 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 Group.”

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 third quarter 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.

About GasLog Ltd.

GasLog is an international owner, operator and manager of LNG carriers.
GasLog’s current fleet consists of 18 wholly owned LNG carriers, including
eleven ships in operation and seven LNG carriers on order, and GasLog has nine
LNG carriers operating under its technical management for third parties.
Following completion of this additional acquisition from MSL, GasLog’s fleet
will increase to 21 wholly owned LNG carriers and GasLog will have six LNG
carriers 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 dividend
payments, future capital expenditures and drydocking costs and newbuild
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, technological advancements and
opportunities for the profitable operation of LNG carriers; our ability to
enter into time charters with our existing customers as well as new customers;
our contracted charter revenue; our customers’ performance of their
obligations under our time charters and other contracts; the effect of
volatile economic conditions and the differing pace of economic recovery in
different regions of the world; future operating or financial results and
future revenues and expenses; our future financial condition and liquidity;
our ability to obtain financing to fund capital expenditures, acquisitions and
other corporate activities, funding by banks of their financial commitments,
and our ability to meet our obligations under our credit facilities; 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 expectations relating to dividend payments and our ability to
make such payments; our ability to enter into shipbuilding contracts for
newbuildings 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 newbuildings 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
time charter commitments; environmental and regulatory conditions, including
changes in laws and regulations or actions taken by regulatory authorities;
requirements imposed by classification societies; 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
with the SEC on March 27, 2014. 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 around the end of the second quarter of 2014
    and timely receipt of charter hire specified in the charter contracts;
  *Utilization of 363 days, 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, +377-9797-5120
Simon Crowe, +377-9797-5115
Jamie Buckland, +377-9797-5117
Investor Relations
Solebury Communications, NYC
Ray Posadas, +1-203-428-3231
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