Business Context and Reporting Period
This Form 6-K filing by Dynagas LNG Partners LP (NASDAQ: DLNG) is dated September 4, 2014. The registrant is a foreign private issuer formed in May 2013 to own, operate, and acquire liquefied natural gas (LNG) carriers. As of the filing date, the Partnership owns and operates a fleet of four LNG carriers, each with a capacity of approximately 150,000 cbm, employed on multi-year charters.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, or existing debt levels. The document focuses on a proposed capital transaction rather than reporting historical financial performance.
Material Changes and Proposed Transactions
- Senior Notes Offering: The Company announced plans to issue senior unsecured notes due 2019 in a registered public offering. Dynagas Finance Inc., a wholly-owned subsidiary, is acting as co-issuer.
- Use of Proceeds: Net proceeds are intended to finance the majority of the purchase price for one of three recently built vessels the Partnership has the option to acquire from its sponsor, Dynagas Holding Ltd., along with the respective charter contract.
- Additional Funding: The balance of the vessel purchase price is expected to be funded with cash on hand.
- Underwriters: Sterne, Agee & Leach, Inc. and DNB Markets, Inc. are acting as joint book-running managers and structuring agents.
Guidance, Outlook, and Risks
The filing contains forward-looking statements regarding the proposed public offering and the use of net proceeds. Management notes that these statements involve risks and uncertainties that could cause actual outcomes to differ materially, including the risk that the Partnership may not complete the offering. A registration statement has been filed with the SEC but has not yet become effective; therefore, the Notes may not be sold until the registration statement becomes effective.
Investor Verification Checklist
- Verify the effectiveness of the registration statement for the Senior Notes Due 2019.
- Confirm the final terms of the offering, including interest rate and total issuance amount, once the prospectus is finalized.
- Assess the Partnership's current cash on hand to determine the sufficiency of funds for the balance of the vessel purchase price.
- Review the specific terms of the option to acquire the vessel from Dynagas Holding Ltd.
- Monitor the status of the multi-year charters for the existing fleet and the new vessel.