STAMFORD, Conn., March 31,
2023 /PRNewswire/ -- Dorian LPG Ltd. (NYSE: LPG) (the
"Company" or "Dorian LPG"), one of the world's largest owners and
operators of modern and ECO very large gas carriers ("VLGCs"), is
pleased to announce that it took delivery today under a 13-year
bareboat charter of its Dual-Fuel LPG Carrier, Captain
Markos, which was delivered from Kawasaki Heavy Industries
to its Japanese owner on the same date. She will trade in the
Helios LPG Pool which we operate jointly with Phoenix Tankers Pte.
Ltd., a wholly-owned subsidiary of Mitsui OSK Lines Ltd.
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John Hadjipateras, Chairman,
President and Chief Executive Officer of Dorian LPG Ltd. said, "We
are very pleased to welcome Captain Markos, which will be
our first technically managed dual-fuel LPG VLGC. She is the third
of four Dual-Fuel VLGCs that are scheduled for delivery to the
Company during calendar 2023, each with improved economics and
carbon footprints, consistent with our mission to provide safe,
reliable, clean, and trouble-free transportation. We thank our
Japanese partners for their role in this transaction, and we wish
our seafarers fair winds and smooth seas."
Similar to our previous Japanese financings, this transaction is
treated as a financing transaction and Captain Markos will
be recorded as an asset on our balance sheet. Prior to the delivery
of the vessel, we paid $25.0 million
in cash and, upon delivery, entered into a $56 million bareboat charter financing
arrangement. This debt financing has a floating interest rate of
one-month SOFR plus a credit adjustment spread of .1148%
(reflecting the difference between unsecured LIBOR and SOFR) and a
margin of 2.475%, monthly broker commission fees of 1.25% over the
13-year term on interest and principal payments made, broker
commission fees of 1.0% payable on the remaining debt outstanding
at the time of the repurchase of Captain Markos, and a
monthly fixed straight-line principal obligation of $0.210 million until March
31, 2028 and of $0.250 million
from April 30, 2028 through the
remainder of bareboat charter period with a balloon payment of
$19.4 million. The Company has early
buyout options beginning March 31,
2028.
Forward-Looking & Other Cautionary Statements
This press release contains "forward-looking statements."
Statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," "projects," "forecasts," "may," "will," "should" and
similar expressions are forward-looking statements. These
statements are not historical facts but instead represent only the
Company's current expectations and observations regarding future
results, many of which, by their nature are inherently uncertain
and outside of the Company's control. Where the Company expresses
an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, the Company's forward-looking
statements are subject to risks, uncertainties, and other factors,
which could cause actual results to differ materially from future
results expressed, projected, or implied by those forward-looking
statements. The Company's actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements as a result of certain factors, including changes in the
Company's financial resources and operational capabilities and as a
result of certain other factors listed from time to time in the
Company's filings with the U.S. Securities and Exchange Commission.
For more information about risks and uncertainties associated with
Dorian LPG's business, please refer to the "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and
"Risk Factors" sections of Dorian LPG's SEC filings, including, but
not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q. The Company does not assume any obligation to
update the information contained in this press release.
About Dorian LPG Ltd.
Dorian LPG is a liquefied petroleum gas shipping company and a
leading owner and operator of modern VLGCs. Dorian LPG's fleet
currently consists of twenty-five modern VLGCs, including three
dual-fuel LPG vessels. Dorian LPG has offices in Stamford,
Connecticut, USA; Copenhagen,
Denmark; and
Athens, Greece.
Visit our website at www.dorianlpg.com
For further information:
Dorian LPG Ltd.
Ted Young - Chief Financial
Officer
(203) 674-9900
IR@dorianlpg.com
Source: Dorian LPG Ltd.
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SOURCE Dorian LPG Ltd.