Owner and operator of LNG carriers Dynagas LNG Partners LP has entered into an agreement with Dynagas Holding Ltd., the company's sponsor, to acquire the 155,000cbm ice class liquefied natural gas carrier Lena River, for US$240m.

The 2013-built tanker is currently operating under a charter contract with Gazprom Global LNG Limited, which has an initial term of five years and expires in October 2018.

Dynagas LNG Partners estimates that the Lena River will generate approximately US$86.6m of incremental contracted revenues over its remaining minimum charter term, assuming full utilization, and approximately US$24.8m of estimated net cash from operations for the first 12 months after the closing of the acquisition, expected to take place on or before Dec. 31, 2015.

"In this short period of two years we have doubled the size of our fleet and increased our cash distributions per common and subordinated unit at a cumulative annualized level consistent with the targets we set out to achieve. In addition our contracted cash flows provide sufficient comfort to support our belief that the aforementioned proposed distributions to our unitholders are sustainable," said Tony Lauritzen, Chief Executive Officer of the Partnership,
Dynagas LNG Partners said that the acquisition will be financed with some US$72m from the net proceeds of its underwritten offering, approximately US$133m from the borrowings under a new US$200m senior term loan facility with a group of lenders, and US$35m from credit financing provided by the sponsor.

In early 2016, the partnership plans to draw down and utilize the remaining available borrowings under the US$200m term loan facility of approximately US$67m to repay the sponsor credit financing and for working capital purposes.