GasLog Ltd. (NYSE:GLOG) stock observed trading -41.10% off 52-week high price. On the other end, the stock has been noted 3.29% away from low price over the last 52-weeks. The stock disclosed a move of -11.35% away from 50 day moving average and -24.09% away from 200 day moving average. Moving closer, we can see that shares have been trading -4.70% off 20-day moving average. It has market cap of $1079.89M and dividend yield of 4.49%.
On June 24, 2019, GasLog Ltd. (NYSE:GLOG) and GasLog Partners LP (GasLog Partners or the Partnership) (NYSE: GLOP) announced an agreement to eliminate the GP’s incentive distribution rights (IDRs) in exchange for newly issued limited partner (LP) units. In exchange for the IDRs, GasLog will receive 2,532,911 common units and 2,490,000 Class B units. The transaction is expected to close on June 30, 2019.
The Class B units will be a new class of LP interest and will not be entitled to receive any cash distributions until they convert into common units. The Class B units also generally will not have voting rights until they convert into common units. The Class B units will become eligible for conversion on a one-for-one basis into common units at the GP’s option in six tranches of 415,000 units per annum on July 1 of 2020, 2021, 2022, 2023, 2024 and 2025.
The Board of Directors of GasLog, the Board of Directors of GasLog Partners (the Board) and the Conflicts Committee of the Board have each approved the transaction described above. Evercore advised the Conflicts Committee of the Board.
The highlights of the transaction are:
Immediately accretive to the Partnership’s distributable cash flow per LP unit;
Cash flow neutral based on current IDR distributions;
Enhances GasLog Partners’ ability to pursue growth opportunities by reducing its expected cost of capital;
Increases GasLog’s ownership in the Partnership, strengthening GP/LP alignment;
Reduces complexity in GasLog’s structure and simplifies the presentation of financial results; and
Reiteration of GasLog Partners’ distribution growth guidance of 2% to 4% for 2019
Andrew Orekar, Chief Executive Officer of GasLog Partners, stated,As the first marine MLP to eliminate IDRs, GasLog Partners is poised to benefit from a differentiated corporate and financial structure. The transaction is expected to be immediately accretive to distributable cash flow per LP unit and to reduce our cost of capital, facilitating continued execution of our growth objectives. With no future IDR obligations, we reiterate our distribution growth guidance of 2% to 4% for 2019.
Paul Wogan, Chief Executive Officer of GasLog, stated, Since its IPO in 2014, GasLog Partners has raised over $2.4 billion of capital and has been both a critical component of our growth and a key enabler in achieving our strategic goals. By removing the IDRs, we aim not only to simplify GasLog’s structure but also to reduce the Partnership’s expected cost of capital. GasLog Partners remains our preferred equity funding source and we believe that this transaction will contribute to its continued growth and success.
The Monaco based company GasLog Ltd. moved with change of -0.22% to $13.36 with the total traded volume of 243375 shares in recent session versus to an average volume of 366.24K. The stock was observed in the 5 days activity at 1.98%. The one month performance of stock was -10.64%. GLOG’s shares are at -22.10% for the quarter and driving a -25.92% return over the course of the past year and is now at -18.83% since this point in 2018. Right now the stock beta is 1.07. The average volatility for the week and month was at 2.70% and 3.11% respectively. There are 80.83M shares outstanding and 41.27M shares are floated in market.
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